Nigel Farage erupted into a furious outburst on GB News about calls for Rachel Reeves to cut National Insurance and raise income tax.
The Reform UK leader said the Government is hammering savings, making him question whether his own cost-cutting efforts earlier in life were worthwhile.
Nigel Farage hit out at calls for Rachel Reeves to hike income tax
|GB NEWS / PA
He explained: “The Budget is not happening until 26 November. Very much later than we expected. A Government that claimed had been left a £22bn black hole by the Conservatives now has its own massive problems.
“An organisation you may never have heard of, The Resolution Foundation, a centre-left economic think tank, boy they are powerful.
Chancellor Rachel Reeves will set out the Budget in November
| GB NEWS“This organisation is very powerful in terms of shaping how the Labour Party thinks. They are proposing a £6bn tax raid in November on pensioners, landlords and the self-employed.
“It strikes me that we have a darkening economic situation. We have inflation that is a lot more persistent than anyone thought it would be.
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“Here’s my problem. Two Fridays ago, I had my pension statement through and I looked through it. It said that from 2027, this pension pot will be subject to Inheritance Tax.
“I thought to myself, ‘why the hell did I bother?, Why did I bother all through the ’90s and early noughties?
Nigel Farage said cutting National Insurance by 2p and adding it to income tax would be a 'direct attack on thrift'
|GB NEWS
“I put money aside every year. I didn’t buy new cars, I didn’t go to Barbados. I put the money aside thinking not only is it a pension for me, but if I drop down dead, it’s money for the family.”
Nigel admitted he is fearful of further attacks to come on pensioners in the upcoming Budget.
The Reform UK leader said the think tank’s proposal is a war on “thrift”.
“It’s a direct attack on saving”, he said.
Experts are warning the state pension could be taxed in the near future | GETTY “People will think, ‘to hell with it. We’ll spend it all down the pub and when we get old, the state will simply look after us’.”
The proposal would impact pensioners, landlords and self-employed individuals who currently pay income tax but are exempt from employee national insurance contributions.
The recommendation comes as the Chancellor prepares for November's budget amid mounting pressure to address a funding gap that could reach £20 billion by 2029/2030, with some projections suggesting requirements as high as £51 billion.
The think tank argues this approach would establish greater equity in the taxation system whilst shielding employees' take-home pay from further reductions.
Adam Corlett, the Resolution Foundation's principal economist, stated the changes "should form part of wider efforts to level the playing field on tax".
He emphasised that "significant tax rises will be needed for the Chancellor to send a clear signal that the UK's public finances are under control".
The organisation maintains the restructuring would help tackle what it describes as "unfairness" within current tax arrangements, where different income sources face varying tax burdens.
Mr Corlett added that whilst tax increases are "likely to be painful", the Chancellor should do "all she can to avoid loading further pain onto workers' pay packets".
The proposal gains additional significance given that Torsten Bell, who led the Resolution Foundation from 2015 to 2024, now holds the position of pensions minister in Sir Keir Starmer's administration.
Mr Bell currently serves as a key adviser to the Chancellor, potentially influencing the likelihood of these recommendations being adopted in the forthcoming budget.