Chancellor Rachel Reeves and Reform UK leader Nigel Farage (Image: GETTY)
British businesses are ready to pull out of the UK and move jobs overseas in response to Rachel Reeves’ economic policies, Reform UK leader Nigel Farage has claimed.
The Chancellor’s economic strategy, as set out in her October Budget, included plans to increase National Insurance contributions (NIC) for employers, changes to capital gains tax (CGT) thresholds and a reduction in tax-free allowances and higher tax rates on disposals of assets.
Speaking on GB News on Wednesday evening, Clacton MP Mr Farage also pointed to a surge in the cost of UK government borrowing, with yields on 10-year gilts reaching their highest levels since the financial turmoil of 2022.
He said: “Looking at 30-year rates the other day, and they were inexorably going up, I haven’t heard the BBC screaming about this.
“It’s very easy to criticise whoever’s Chancellor. This has been going on for a long time, centuries.
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“But the one thing that strikes me is they’re not showing us a path out of it. And honestly, I don’t think I can remember a time when business confidence was lower.”
He continued: “I met the boss today of a massive company in this country employing tens of thousands of people, and his answer to what’s coming in in April is offshoring jobs.
“Somehow they’ve got to bring some confidence back.
“I look at them and this is a miserabilist government. Everything’s negative, very negative.”
James Dyson has voiced his concern at Rachel Reeves’ economic policies (Image: Getty)
Looking ahead to the inauguration of Donald Trump next week, Mr Farage pointed out that incoming US Treasury Secretary Scott Besson had pledged to reduce the size of the public sector and grow the private one.
Mr Farage said: “I think we’re doing the opposite here.
“Today’s electricity costs were through the roof. At lunchtime today 52% of our power generation was gas that we import if course, at quite expensive prices.
“A chap I met today who employs tens of thousands of people in this country said this to me.
Nigel Farage pictured with Donald Trump at a rally in 2020 (Image: Getty)
“He said, in 1990 our electricity costs, our energy costs, were exactly the same as America’s. Yes, they are now four times, America’s. It’s a disaster.”
The Labour government’s budget has faced criticism for its potential impact on entrepreneurship and economic growth.
Prominent businessman and Brexiteer James Dyson described the measures as “an egregious act of self-harm,” arguing that changes to inheritance tax and increases in National Insurance contributions could stifle wealth creation and deter family-owned businesses.
Chancellor Rachel Reeves has insisted she will “fight every day” to deliver economic growth after the latest official figures showed weaker-than-expected growth in November.
The Office for National Statistics (ONS) estimated the UK economy grew in November by 0.1% after falling by 0.1% in both September and October.
Chancellor Rachel Reeves visited China last week (Image: Getty)
While a welcome return to growth, most economists were expecting gross domestic product (GDP) to rebound by 0.2% in November.
Markets calmed on Wednesday after a surprise fall in inflation, offering some welcome respite to Ms Reeves.
But the paltry growth for November means the economy would need to grow by at least 0.1% in December just to avoid contracting overall in the final quarter of the year.
Ms Reeeves said: “After 14 years of economic stagnation, this Government’s number one mission is to grow our economy.
“I will fight every day to deliver that growth and put more money into working people’s pockets.”
She will hold a meeting with regulators in No 11 today (Thursday) as she attempts to cut red tape and remove barriers to investment to kickstart sluggish growth.
