Reform-linked thinktank calls for state pension to be scrapped

A thinktank with close links to Reform UK has called for the abolition of the state pension and £75bn in sweeping tax cuts, setting out a radical programme that could influence the party’s platform ahead of the next election.

The Centre for a Better Britain’s 183-page report also proposes weaker rules for banks, major changes to corporation tax and Trump-style investment accounts for newborns.

£75bn tax blitz would tear up half the tax code

The report proposes scrapping capital gains tax, inheritance tax, stamp duty on property and shares, digital services tax and air passenger duty. It also calls for corporation tax to fall from 25% to 15% over eight years.

The thinktank says the measures would effectively remove up to 50% of the existing tax code, at a cost of £75bn to the public finances. It argues the changes would boost investment, productivity, business creation and living standards.

But the report says tax cuts would have to be matched by spending reductions to avoid a repeat of the market turmoil triggered by Liz Truss’s 2022 mini-budget.

State pension branded a “Ponzi scheme”

The most explosive proposal is the abolition of the state pension, which is forecast by the Department for Work and Pensions to cost £146.1bn in 2025-26.

Jonathan Brown, the former Reform chief operations officer who founded and leads the thinktank, described the pension as “essentially a Ponzi scheme”.

In its place, the report proposes “lifetime investment accounts”, beginning with a £1,000 state contribution at birth and allowing people to pay up to 15% of their earnings into personal retirement pots. The state pension would remain only as a means-tested safety net.

Reform links put the proposals under scrutiny

The Centre for a Better Britain operates from Millbank Tower near Reform’s headquarters and has several links to the party, although its authors said the report had not been reviewed by Reform.

Its former advisory board chair James Orr left the thinktank after joining Reform earlier this year. He was later suspended by the party following an undercover investigation, allegations he denies.

The report is due to be formally launched at a private event with City executives.

Thinktank linked to Reform UK calls for abolition of state pension