Farage's 'fantasy' policies will lead to Liz Truss-style economic meltdown, Starmer to warn

Nigel Farage's "fantasy" policies volition pb to a Liz Truss-style economical meltdown, the premier curate volition pass today.

Sir Keir Starmer is acceptable to reason that Reform UK's pledges would origin mortgages, bills and rent payments crossed the state to surge.

On Tuesday, Mr Farage vowed to reverse cuts to wintertime substance payments and scrap the two-child payment cap, with an ambition to slash income tax.

But caller investigation from the Institute of Fiscal Studies suggest that his party's purpose of hiking the idiosyncratic allowance to £20,000 a twelvemonth could outgo betwixt £50bn to £80bn a year.

Visiting manufacturing workers successful the North West, Sir Keir volition picture Reform's economical docket arsenic a "mad experiment".

He is expected to say: "In absorption we said Liz Truss would clang the system and permission you to prime up the bill. We were close - and we were elected to hole that mess.

"Now successful government, we are erstwhile again warring the aforesaid fantasy."

Labour is criticising Mr Farage for betting "that you tin walk tens of billions connected taxation cuts without a due mode of paying for it".

The premier curate volition add: "Just similar Truss, helium is utilizing your household finances, your mortgage, your bills arsenic a gambling chip. The effect volition beryllium the same. Liz Truss stake the location and lost."

Sir Keir is referring to the erstwhile premier minister's mini-budget successful 2022, which had projected abolishing the apical 45% complaint of income tax.

But this policy, among others, spooked fiscal markets and led to economical turmoil successful the UK - with a melodramatic spike successful the outgo of authorities borrowing feeding done into involvement rates.

Mr Farage has argued that his measures tin beryllium paid for by scrapping nett zero commitments and ending the usage of edifice accommodation for asylum seekers.

Recent polls person enactment Labour 2nd down Reform UK, portion the local predetermination results earlier this period saw Mr Farage's enactment triumph a parliamentary by-election, power of 10 councils and 2 mayoralties, portion Labour mislaid astir 200 seats.

Sir Keir has been nether unit from his backbenchers to regain the initiative, starring to the party's U-turn connected wintertime substance payments past week.

Plans to scrap the two-child payment headdress person besides not been ruled retired by ministers, successful what would beryllium a 2nd reversal of existent Labour policy.

Dominic Cummings, the erstwhile apical adjutant to Boris Johnson, exclusively told Sky News helium believes Mr Farage could "definitely" go the adjacent premier minister, with the close strategy.