Nigel Farage has dropped Reform UK's pledge to part-nationalise Britain's water and energy companies, marking a major policy reversal for the right-wing populist party. The move comes as Reform recalibrates its economic agenda amid the UK's strained public finances, abandoning plans for the state and pension funds to jointly own half of critical infrastructure. The party had previously promised to overhaul utilities through what it called a 'new ownership model for critical national infrastructure.'

Reform's shift represents a significant departure from its 2024 election manifesto, which included proposals for £90bn in tax cuts and partial nationalisation of struggling utilities. The party now admits these fiscal pledges are no longer policy, with a spokesperson noting that 'other parties are not continually held to their previous election manifestos.' This change follows pressure from new Treasury spokesperson Robert Jenrick, who is steering Reform toward a more fiscally conservative 'small state' economic agenda. The party has also reversed its position on increasing the personal tax allowance from £12,750 to £20,000, a policy economists estimated would cost over £50bn annually.

Despite abandoning broader utility nationalisation, Reform maintains that privatised utilities deliver poor outcomes for consumers and taxpayers. The party says it will still consider 'strategic stakes' or using government balance sheets to fix broken markets. Reform remains committed to nationalising British Steel and has proposed government stakes in companies like Rolls-Royce to support nuclear reactor development. Farage has suggested a 10 per cent government stake in Rolls-Royce to advance small modular nuclear reactor projects, signalling the party's continued interest in selective state intervention in strategic industries.