Jenrick promises £20bn benefit savings for tax cuts in his ‘budget’

By the Editorial Team · Sunday, October 25, 2026

Reform UK has proposed a £40 billion savings plan through benefit cuts and reduced spending on net zero initiatives, foreign aid, and public sector bodies to fund broad tax relief measures. The party claims this approach could save the average household around £1,300 annually and urges the government to adopt these policies ahead of Chancellor John Healey’s forthcoming Budget.

Reform UK has outlined a plan to achieve £40 billion in savings through benefit reductions and cuts to what it describes as “wasteful spending,” with the aim of funding broad tax cuts. The party’s Treasury spokesman, Robert Jenrick, is set to unveil the proposals in a “rival red book” and accompanying speech ahead of the government’s upcoming Budget statement.

Jenrick’s plan, described as an “emergency” package of cost-cutting measures, calls for a £20 billion reduction in the benefits budget, alongside savings of £8 billion from scaling back net zero initiatives, £6 billion from foreign aid, and £2 billion from cuts to quangos and the Civil Service. Additional measures include lowering the student loans bill by £3 billion through restrictions on foreign students and “dead-end degrees,” as well as generating £1 billion from a new immigration health surcharge.

These savings are intended to support tax relief for families and businesses, including raising the tax-free personal allowance to £15,000, offsetting anticipated increases in energy bills, and reversing planned fuel duty hikes. Reform UK estimates that these measures would result in an average household saving approximately £1,300 annually—comprising £1,000 from tax cuts, £250 from energy cost reductions, and £50 from lower fuel duties.

The announcement comes as Chancellor John Healey prepares to deliver his first Budget, facing an estimated £35 billion shortfall if current spending and defense commitments are maintained. Healey has already indicated plans to allocate £4.7 billion to cover a gap in Labour’s defense funding, a shortfall partly attributed to decisions made under the previous Shadow Chancellor, Rachel Reeves.

Jenrick criticised the Labour leadership for what he described as a refusal to tackle spending, accusing “Benefits Burnham”—a reference to Labour’s Greater Manchester mayor Andy Burnham—of deferring difficult fiscal decisions. Speaking at a pre-Budget event alongside Reform UK leader Nigel Farage, Jenrick argued that Britain’s financial position necessitates immediate cuts to public expenditure in order to deliver tax relief. He stated: “We can’t go on like this. Britain is broke. We need emergency spending cuts so we can give families and businesses tax relief.”

The rival red book is expected to also propose measures aimed at stimulating economic growth. Reform UK urges the Treasury to adopt their policies as a means to restore fiscal stability and relieve financial pressures on households ahead of the government’s Budget announcement.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.