A thinktank closely tied to Reform UK has unveiled a “radical” economic strategy that proposes the elimination of the state pension. The 183-page report, titled “Boosting Britain,” argues that the existing pension structure acts as a “Ponzi scheme” and advocates for its replacement with a system based on personal investment.
Jonathan Brown, the founder and leader of the Centre for a Better Britain (CFABB), outlined the proposal during a briefing. Under this new model, every child would receive a £1,000 starter “lifetime investment account” at birth. Individuals would then be expected to contribute up to 15% of their earnings toward their own retirement. The traditional state pension would be relegated to a means-tested safety net for the most vulnerable citizens.
The policy document calls for a massive £75 billion in tax reductions, a move the authors claim would effectively remove nearly half of the current UK tax code. Key proposals include the total abolition of capital gains tax, inheritance tax, stamp duty on shares and property, and the digital services levy. Additionally, the group suggests lowering corporation tax from 25% to 15% over an eight-year period to combat what it describes as an “internationally uncompetitive” environment.
While the report suggests these measures would boost productivity, higher wages, and business investment, it acknowledges that the fiscal impact must be offset by spending cuts to avoid a market crisis. The group points to closing public sector pension schemes to new entrants as one potential mechanism for savings. The Department for Work and Pensions currently estimates the state pension will cost the UK public purse approximately £146.1 billion during the 2025-26 period.
The CFABB, which operates out of Millbank Tower near Reform UK’s headquarters, formally launches the report at a private event for City executives this Wednesday. Although the thinktank shares significant links with the party, officials claim the platform has not yet undergone formal review by Reform leadership.
The report also suggests a significant restructuring of government institutions. It proposes breaking up the Treasury to create a separate “department for economic growth” and introducing a sliding scale for bank taxes. Furthermore, it suggests linking the pay of senior Bank of England officials, including the governor, Andrew Bailey, to the achievement of specific inflation targets.
The document arrives only weeks before Prime Minister Andy Burnham is set to present his government’s first budget. The thinktank’s origins date back to a group called Resolute 1850, a name honoring the ship that provided timbers for the White House’s Oval Office.
Controversy currently surrounds the organization due to its past association with James Orr, Reform UK’s former head of policy, who served as the chair of the CFABB advisory board. Orr was suspended by Reform earlier this month amid an undercover investigation regarding the potential circumvention of election laws concerning foreign donations. Orr has denied any wrongdoing. A CFABB spokesperson stated that Orr stepped down from his role at the thinktank in February upon joining Reform and was not replaced. The report also notes that entitled “Boosting Britain”, proposes abolishing taxes typically levied on wealthy Britons, including capital gains tax and inheritance tax, which it says disrupts family businesses and encourages people to move their wealth out of the UK, the 183-page report. The report also notes that that would effectively “remove up to 50% of the existing tax code” at a £75bn cost to the public finances. The report also notes that designed ultimately to raise productivity and living standards through better-paid jobs, higher retirement incomes, higher business investment, more businesses starting and scaling, and less time and money spent on unproductive activity”, the report said it amounted to a “a programme of radical reform to Britain’s financial system and tax code. The report stresses that any tax changes would have to be matched by cuts to public spending – to avoid a Liz Truss-style market meltdown – but stopped short of outlining how exactly to match all of those cuts with cost savings. The report also notes that however, the CFABB says some ways to cut spending could involve closing the coveted public pension plan to new teachers and civil servants, and eradicating the state pension.
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