Reform UK has announced plans to impose a windfall tax on renewable energy as part of its strategy to roll back net-zero policies, which party leader Richard Tice has blamed for the deindustrialisation of Britain. The proposals also include ending inheritance tax relief for farmers who install solar panels on their land.
Tice: Farmers must choose between food security and renewables
Speaking at a press conference in London, Tice said a Reform government would abolish the “appalling family farms tax”, referring to existing inheritance tax laws. However, he warned that farmers who turn their land into solar farms should not expect the same tax benefits.
“You’ve got to make a decision: either you are part of food production, part of food security for our nation, or you’re part of the renewables industry. So you can’t double dip,” he stated.
Under the proposed policy, farmers who lease their land for renewable energy projects, such as solar farms, would no longer be eligible for inheritance tax relief—a move Tice described as “only fair”.
Windfall tax on renewables to cut energy bills
Reform UK’s energy plan also includes a windfall tax on renewable energy companies, targeting wind and solar providers as well as major biomass operations such as Drax power station. Tice argued that current subsidies for renewable energy companies had increased the cost of living and that taxing them would help lower household energy bills.
“The British people need to know there is a direct link between the cost of all these subsidies to the vested interests in the renewables industry and your bills,” Tice said.
The party is proposing a “generation tax” and a special corporation tax rate on renewable firms to reclaim money paid in government subsidies. Tice estimates the plan could recover around £10 billion annually, saving households between £300 and £350 per year on their energy bills.
Calls for underground power cables over pylons
Reform UK is also taking aim at energy infrastructure, putting energy companies and the National Grid “on notice” to bury power cables underground rather than erecting pylons.
Tice cited an example of a controversial project in East Anglia, where pylons are planned to connect new wind farms to the grid. He claimed that official reports showed underground cables would be the cheaper option. However, a National Energy System Operator report clarified that this would only be the case if alternative projects were delayed until 2034.
Criticism from environmental and industry groups
The announcement has been met with strong opposition from environmentalists and industry experts, who argue the proposals would harm investment in renewable energy and push up energy costs in the long run.
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Sam Hall, director of the Conservative Environment Network (CEN), warned that Reform UK’s plan would stifle energy production and damage investor confidence.
“Reform’s statist plan to put new taxes and red tape on British energy would cause household bills to skyrocket and pull the rug on energy firms,” he said.
He added that the UK should be focusing on expanding its domestic energy supply, not imposing new barriers.
Greenpeace UK also condemned the proposal, comparing it to Donald Trump’s pro-fossil fuel stance in the US.
“This jumble of misinformation and gaslighting is just a cover to allow Big Oil bosses to rake in even more billions in profits,” said Mel Evans, Greenpeace UK’s head of climate.
She warned that reducing investment in renewable energy would leave households vulnerable to rising gas prices, climate-related disasters, and long-term economic instability.
A divisive energy policy ahead of the election
Reform UK’s stance on net-zero policies is set to be a major dividing line in the upcoming election, as the party seeks to appeal to voters concerned about rising living costs. However, critics argue that dismantling renewable subsidies could jeopardise energy security and slow down the transition to a low-carbon economy.
With energy prices and climate policies at the forefront of the political debate, the battle over Britain’s green future is far from over.
