'Britain is broke': Reform's Robert Jenrick is to unveil £40bn of emergency cuts to fund £1,300 of tax relief

Welfare would take the biggest hit at £20bn, with net zero subsidies accounting for £8bn of cuts and foreign aid £6bn. Another £3bn would come from 'student loans to dead-end degrees and foreigners', while quangos and the civil service would contribute a further £2bn. The combined savings would be used to raise the tax-free personal allowance to £15,000, which Reform argues would remove 3 million people from income tax entirely. The plan is set to be announced two days before Chancellor John Healey's Budget.

Households would also receive £250 off energy bills and be spared the scheduled fuel duty rise.

Jenrick described the government's handling of the public finances as 'a cowardly abdication' of duty.

Nigel Farage will stand alongside Jenrick at the launch of a rival 'teal paper' set against Healey's red book.