Nigel Farage to set out plans to save £25 billion in challenge to Reeves ahead of budget

Leader Nigel Farage is demanding that Chancellor Rachel Reeves implement Reform's plans to save more than £25 billion in public money this financial year as a way to avoid a tax hike in the upcoming budget.

It comes after Ms Reeves and Prime Minister Sir Keir Starmer informed the Office for Budget Responsibility (OBR) that they would not be hiking rates on November 26 in a shock U-turn last week.

The Chancellor had previously appeared to all but confirm she would be raising income tax, breaking from Labour's 2024 election manifesto pledge.

Reform's proposals include raising the immigration health surcharge from £1,035 a year to £2,718, which it claimed would raise £5 billion.

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Mr Farage, who will set out the plans in a speech in London on Tuesday, said: “With our sensible cost savings and putting the priorities of British people, not foreign nationals, first – there will be no need for tax rises thanks to our plans.”

Reform’s plans would cut foreign aid to £1 billion, which it claimed would save about £10 billion.

Ending universal credit payments to foreign nationals would save £6 billion this year, the party said.

The entitlement for EU citizens with settled status to claim benefits is enshrined in the Brexit deal, but Reform said that if Mr Farage was prime minister he would renegotiate that.

Deporting all foreign criminals would save £580 million, while previously announced plans from Reform to restrict the personal independence payment would save £3.5 billion, the party said.

Reform’s head of policy, Zia Yusuf, told The Times: “Labour has a choice. They can either go ahead and raise taxes on British citizens or they can enact our proposals which put British people first and ask foreign nationals to bear the brunt of the black hole, not British citizens.

“Most British people would consider it outrageous to expect British people to pay higher taxes or see their services cut whilst their money is being spent this way.”

Reform would give EU citizens who are claiming universal credit three months notice as part of a transitional period before ending their payments.

If the EU refused to accept the terms, a Reform UK government would take unilateral action, regardless of the threat of “trade retaliation”.

A Labour Party spokesman said: “Nigel Farage’s fantasy numbers don’t add up, and he’d leave British taxpayers footing a hefty bill.

“Farage is happy to slap British shoppers with higher prices at the checkouts by risking a trade war with Europe.

“He’d betray working people and hammer British businesses who want to trade with the EU.

“Labour’s budget will take the fair choices to deliver strong foundations for our economy and secure our country’s future, with no return to austerity and no borrowing beyond our means.”