Reform UK has set out an alternative Budget built around £40 billion of proposed spending reductions, saying the savings could be redirected into tax cuts, lower energy costs and a higher tax-free personal allowance.

The party’s Treasury spokesman, Robert Jenrick, frames the plan as a response to what he calls an unsustainable fiscal position. “We can’t go on like this. Britain is broke,” he said, arguing that emergency reductions in government spending are needed to provide tax relief for families and businesses.¹

Reform’s proposals include £20 billion from welfare, £8 billion from Net Zero subsidies, £6 billion from foreign aid, £2 billion from quangos and the civil service, and £3 billion from student-loan spending. It also proposes raising £1 billion through the immigration health surcharge. The party says it would not cut the NHS, armed forces or police.¹

The contrast is central to Reform’s argument: rather than defer difficult decisions, it says savings should be made in the first year and used to reduce the burden on households. Jenrick accused the government of postponing spending restraint, saying it had failed to identify wasteful expenditure to cut.²

Under the plan, £18 billion would go toward increasing the tax-free personal allowance to £15,000. Reform says this would leave the average household £1,000 better off and remove about 3 million people from income tax. It also proposes measures it says would cut energy bills by £250 and prevent a fuel-duty increase, with the party putting the total household tax-relief benefit at £1,300.²

Supporters present the package as an “economic rescue plan” combining lower taxes with fiscal headroom and defence investment. Its feasibility, however, rests on delivering large savings across politically sensitive budgets, including welfare, overseas aid and climate-related programmes.