Fresh blow for Rachel Reeves as Nigel Farage trusted more on economy, LBC poll finds
Chancellor Rachel Reeves has been delivered a fresh blow this evening after an exclusive poll for LBC found that voters now trust Reform UK leader Nigel Farage more than the Chancellor with the economy.
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Over 2,000 voters were asked for their preference between Ms Reeves and Mr Farage on the question of who is best placed to generate economic growth and put more cash in their pockets.
Fifty-four percent of respondents said that they believe they have a greater level of trust in the Reform leader, with Ms Reeves receiving 46%. Voters in the north east displayed the greatest support for Mr Farage’s economic plans - with 70% saying they trusted him more than the Chancellor.
The findings compound a difficult day for Ms Reeves.
The Chancellor was seen crying during Prime Minister’s Questions following a tumultuous few days in which the government’s flagship welfare policy was torn apart by rebellious backbenchers.
Read more: Rod Stewart says Britain should ‘give Farage a chance’
A spokesperson for Rachel Reeves says the Chancellor has also been dealing with a “personal matter”, whilst MPs witnessed Ms Reeves having an ‘animated exchange’ with Speaker Sir Lindsay Hoyle shortly before PMQs.
The survey, conducted by More in Common, was carried out over the course of the weekend of the 28 and 29 of June, before the scenes in parliament today.
The government has consistently pointed to successive interest rate cuts as a sign that the economy is improving, as well as better-than-expected growth of 0.7% of GDP in the first quarter.
Reform UK’s economic policies, meanwhile, include giving wealthy foreign residents favourable tax status for the price of a £250,000 upfront fee to be paid when they move to the UK.
This cash will then be handed to the bottom 10 per cent of low-income workers. Reform said this could see 2.5 million workers receive between £600 and £1,000 a year, depending on take-up of the ‘Britannia Card’.
The proposal has received criticism from several economists however, with analysis from Tax Policy Associates estimating it would cost more than £34 billion over five years.
Concerns have also been raised over the policy discouraging highly skilled professionals who can’t afford the £250,000 payment from moving to the UK.
Labour Party Chairwoman Ellie Reeves, who is also the Chancellor’s sister, branded the ‘Britannia Card’ a “bonanza for billionaires”, and compared it to Liz Truss’ mini-Budget. She claimed working families will suffer tax hikes due to the £2.5 billion annual cost.
Farage has also said his Reform party would “reindustrialise” Britain by lifting the tax-free allowance on earnings to £20,000. It comes after a petition to raise the threshold from the current £12,750 passed 245,000 signatures.
Questions, though, have been raised about how the policy would be funded. The Institute for Fiscal Studies suggested raising the personal allowance to £20,000 could cost over £60 billion if corresponding increases were made to other income tax thresholds and to those for national insurance.
Critics have also suggested the policy could favour higher-income regions over lower-income areas, with the northeast expected to be hit hardest if funding is drawn from cuts to public services.
However, the exclusive data also comes at a time where Labour’s economic credibility has been called into question, with tax rises becoming increasingly likely in the Autumn Budget after Labour rebels forced the government to concede on welfare reforms this week.
The Treasury has been approached for comment.