Nigel Farage drops Reform UK pledge to nationalise water and energy companies just months after insisting it would 'cost a lot less'

A party spokesman confirmed that the nationalisation pledge had been scrapped, admitting Reform was now overhauling its position on utilities and strategic industries.

At the 2024 General Election, Reform had promised a "new ownership model for critical national infrastructure" in which the state and pension funds would own half each.

A party spokesman has now admitted to the Financial Times the policy has been dropped, pointing to a speech by Mr Farage in November where he scrapped his previous plans for £90billion of tax cuts.

Reform's spokesman said: "Nigel has said that the Contract with the People, the 2024 manifesto, and in particular the fiscal pledges within that, are no longer party policy.

"Other parties are not continually held to their previous election manifestos...There will be scope for greater state involvement in utilities under Reform.

"We will consider strategic stakes or using the Government’s balance sheet to fix broken markets."

One source close to the party told the FT the party's new Treasury spokesman Robert Jenrick was bringing his "small c conservative" instincts to Reform’s policies and shifting back to a "small state" economic agenda.

Nevertheless, an ally of the Newark MP maintained he was not opposed to greater government intervention in industries deemed strategically important.

The most recent YouGov polling from suggests there is majority support for bringing energy companies back into public ownership, with 35 per cent of adults "strongly supporting" nationalisation.

Reform said it remains committed to taking British Steel into public ownership, the loss-making business owned by Chinese firm Jingye that operates two blast furnaces in Scunthorpe.

Last April, Farage visited the Lincolnshire steelworks and urged ministers to nationalise the company, warning they had just "three days" to rescue the operation.

Labour subsequently intervened with legislation preventing closure and enabling the Government to direct operations and safeguard jobs, though Jingye still technically retains ownership.

Mr Jenrick has also floated the idea of the government acquiring a strategic stake in Rolls-Royce to accelerate the deployment of small modular nuclear reactors.

Mr Farage told the FT this month: "I believe in the government having stakes in companies. Rolls-Royce, I wouldn't mind the Government buying a 10 per cent stake and working with them on small nuclear reactors."

Reform UK came under fire for its nationalisation policies from the Conservatives, who accused Nigel Farage's party of having the "economic policies of Jeremy Corbyn."

Shadow Energy Secretary Clare Coutinho said: "[Reform] is promising nationalisations we can’t afford, more tax for more welfare, more spending, which means more borrowing, which means more debt for our children.

"If Government is here to serve the liberties of the people, that means allowing them to keep more of the money that they earn.”

Meanwhile, Green Party leader Zack Polanski told the BBC: "When we sold off Thames Water, for instance, we sold it with zero pounds debt. It now has £70billion debt.

"It's not like nationalisation would be an experiment, the experiment has been privatisation. And privatisation under every single measure has utterly failed."