Labour claimed Reform UK’s move to strip Universal Credit payments would lead to a trade war between the UK and Brussels – pushing up prices on the shelves for British shoppers
Nigel Farage has been accused of risking a trade war with Europe over plans to strip European Union citizens for claiming benefits in the UK.
The Reform UK leader will use a press conference later today to say he would end Universal Credit payments for EU citizens – boasting it will save around £6billion. But the move would rip up the Brexit deal negotiated by the Tories, which entitles citizens from the EU with settled status to claim certain benefits.
Labour claimed the move would lead to a trade war between the UK and Brussels – pushing up prices on the shelves for British shoppers. Mr Farage, who will set out the plans in a speech in London on Tuesday, told the Mail: “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.”
The right-wing outfit said EU citizens who are claiming universal credit three months notice as part of a transitional period before ending their payments. Reform claimed Mr Farage would renegotiate the benefits element of the Brexit deal – a move that would likely be dismissed in European capitals.
A Labour spokesman responded: “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.”
Reform UK said its proposals – totalling £25billion – would remove the need for Chancellor Rachel Reeves to hike taxes in next week’s make-or-break Budget. Other proposals include raising the immigration health surcharge from £1,035 a year to £2,718, which it claimed would raise £5 billion.
It comes as the Chancellor prepares to unveil her Budget measures on November 26 and attempts to plug a multi-billion pound blackholein order to stick to her strict spending rules. In a rare pre-Budget speech a fortnight ago, she appeared to put the country on notice for tax hikes – warning “each of us must do our bit”.
Ms Reeves had been considering a hike in income tax – a major breach of Labour’s manifesto – but she is understood to have recieved better than expected forecasts from the Office for Budget Responsibility (OBR) last week putting the hole at around £20billion. While the figure is still bleak, it slightly rosier than the £30billion-£40billion than experts had previously feared.