Farage’s Reform UK backtracks on key benefits policy to support pubs
Nigel Farage’s Reform UK has ditched its backing of Labour to support the scrapping of the two-child benefit cap as it set out policies to back pubs facing rising costs.
In May last year, Farage said the party backed lifting the two-child benefit cap as part of a string of proposals to boost birth rates across the country.
But in a new announcement to be made, Farage will set out £3bn tax cuts for pubs funded by the reinstatement of the cap, which is set to be removed from April after last year’s Budget measures.
The move jumps on Labour’s struggles with pub landlords over recent weeks, which led to a government U-turn on business rates as temporary 15 per cent discounts will be offered to pubs on new tax rises.
Pubs have hit back at the government claiming the measures did not provide pubs with enough guarantees.
Farage’s tax cut measures
Labour MPs remain banned from several pubs as part of the Wonky Table campaign led by Andy Lennox, with thousands of pubs expected to see business rates bills rise by thousands of pounds over the next three years.
In a statement after last week’s U-turn, Lennox demanded the government to bring VAT down in line with rates enjoyed by bars in Europe.
Farage and Reform UK MP Lee Anderson are set to host a press conference at a pub in central London on Tuesday where plans to support pubs will be unveiled.
One measure would include cutting beer duty by 10 per cent from its current rate of 49 per cent.
Reform UK would also look to cut the current 20 per cent rate of VAT and ensure the hospitality sector enjoys the same perks as supermarkets in tax regulation.
Pubs would also benefit from an exemption in employers’ national insurance hikes introduced by Rachel Reeves in her first budget, with internal estimates stating the tax hike added £1bn to labour costs across hospitality.
Reform would also revise red tape to ensure more locally-owned pubs are created.
The wider measures are part of a push for Reform to connect with voters across the country, taking radical policies to reduce the cost of living for drinkers and win over pub landlords who have become disgruntled with the government.
Reform UK has also taken steps to win over other groups frustrated with Labour policies, including farmers and City investors.
Farage and Reform leaders are set to unveil proposed changes to financial markets, particularly on pensions, taxes, regulation and small businesses’ access to capital.
Keir Starmer and Reeves agreed to lift the cap after significant pressures from the Labour backbenches and its core party member base. Some 510,000 families will benefit from Labour’s decision to lift the two-child cap.