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| Keir Starmer: Nigel Farage's Reform policies 'fantasy' economics | Keir Starmer: Nigel Farage's Reform policies 'fantasy' economics |
| (about 3 hours later) | |
| Prime Minister Sir Keir Starmer has accused Nigel Farage of "fantasy" economics after the Reform UK leader set out a number of policies earlier this week. | Prime Minister Sir Keir Starmer has accused Nigel Farage of "fantasy" economics after the Reform UK leader set out a number of policies earlier this week. |
| In a speech, Sir Keir likened Farage to former PM Liz Truss and said that Reform's policies would lead to an increase in mortgage costs. | |
| Reform made big gains in the English local elections earlier this month, cementing it as a prime challenger to Britain's traditional main parties. | Reform made big gains in the English local elections earlier this month, cementing it as a prime challenger to Britain's traditional main parties. |
| A spokesperson for Reform dismissed the prime minister's comments as a "desperate attack" from a party "behind in the polls". | A spokesperson for Reform dismissed the prime minister's comments as a "desperate attack" from a party "behind in the polls". |
| Speaking at a business in the north-west of England, Sir Keir accused the Reform leader of pledging unfunded tax cuts which, he warned, could spark an economic meltdown. | |
| "In opposition we said [Liz Truss] would crash the economy and leave you to pick up the bill," he said. "We were right. And we were elected to fix that mess. | |
| "Now in government, we are once again fighting the same fantasy – this time from Farage." | |
| He said Farage was making "the exact same bet" as Truss, "that you can spend tens of billions on tax cuts without a proper way of paying for it". | |
| Sir Keir accused Farage of "using your family finances, your mortgage, your bills as a gambling chip on his mad experiment", adding: "The result will be the same." | |
| Truss's mini-budget in 2022, which included £45bn of tax cuts funded by borrowing, sparked turmoil on the financial markets and contributed to increased mortgage rates. | Truss's mini-budget in 2022, which included £45bn of tax cuts funded by borrowing, sparked turmoil on the financial markets and contributed to increased mortgage rates. |
| Thursday's speech is further evidence that right now the prime minister sees Farage as his principal political adversary. | Thursday's speech is further evidence that right now the prime minister sees Farage as his principal political adversary. |
| On Tuesday, Farage pledged more generous tax breaks for married couples and to restore winter fuel payments for all pensioners. | On Tuesday, Farage pledged more generous tax breaks for married couples and to restore winter fuel payments for all pensioners. |
| He also said Reform would scrap the two-child benefit cap, which some Labour MPs want to see abolished. The cap prevents most families from claiming means-tested benefits for any third or additional children born after April 2017. | He also said Reform would scrap the two-child benefit cap, which some Labour MPs want to see abolished. The cap prevents most families from claiming means-tested benefits for any third or additional children born after April 2017. |
| However, it was an existing commitment to raise the threshold at which someone starts to pay income tax from £12,570 to £20,000 in particular that had some economists questioning whether his sums added up. | However, it was an existing commitment to raise the threshold at which someone starts to pay income tax from £12,570 to £20,000 in particular that had some economists questioning whether his sums added up. |
| The Institute for Fiscal Studies think tank said the policy could cost between £50bn and £80bn a year – and that Reform had not spelled out how they would pay for this. | The Institute for Fiscal Studies think tank said the policy could cost between £50bn and £80bn a year – and that Reform had not spelled out how they would pay for this. |
| "Of course they don't have to do that yet – we're not at a general election," said IFS economist Stuart Adam. "But at some point, if they're going to be a party of government, they would have to make those numbers add up." | "Of course they don't have to do that yet – we're not at a general election," said IFS economist Stuart Adam. "But at some point, if they're going to be a party of government, they would have to make those numbers add up." |
| Reform has said its policies would be funded by scrapping net-zero climate measures, stopping hotel accommodation for asylum seekers, ending diversity and equality initiatives in the public sector, and cutting the number of quangos - bodies which are funded by taxpayers but not directly controlled by central government. | Reform has said its policies would be funded by scrapping net-zero climate measures, stopping hotel accommodation for asylum seekers, ending diversity and equality initiatives in the public sector, and cutting the number of quangos - bodies which are funded by taxpayers but not directly controlled by central government. |
| In Farage's speech, the former Ukip leader said the Conservatives had become an "irrelevance", adding: "They've had a good 200 years." | In Farage's speech, the former Ukip leader said the Conservatives had become an "irrelevance", adding: "They've had a good 200 years." |
| May's elections saw Reform make big gains at the expense of both Labour and the Conservatives – winning one by-election and two mayoral races, as well as gaining 677 new councillors. | May's elections saw Reform make big gains at the expense of both Labour and the Conservatives – winning one by-election and two mayoral races, as well as gaining 677 new councillors. |
| The party won most votes, most seats and overall control of most councils. | The party won most votes, most seats and overall control of most councils. |
| But, as politics professor Sir John Curtice highlighted, the party's share of the votes across all councils where elections took place was no more than 31% – so despite doing well, it secured far from a majority of those voting. | But, as politics professor Sir John Curtice highlighted, the party's share of the votes across all councils where elections took place was no more than 31% – so despite doing well, it secured far from a majority of those voting. |
| A Reform spokesman said: "We will take no economic lectures from Keir Starmer. | A Reform spokesman said: "We will take no economic lectures from Keir Starmer. |
| "Labour's manifesto promised £10bn per year of increased spending. | "Labour's manifesto promised £10bn per year of increased spending. |
| "Their first budget raised spending by £70bn and they have added another £30bn since then for Chagos." | "Their first budget raised spending by £70bn and they have added another £30bn since then for Chagos." |
| The prime minister faces pressure from his own MPs on government spending decisions, including cuts to disability benefits. | The prime minister faces pressure from his own MPs on government spending decisions, including cuts to disability benefits. |
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