Reform UK vows to scrap Britain’s carbon border tax

[ad_1] LONDON — Reform UK would scrap Britain’s deliberate carbon border tax if it wins energy, the social gathering’s enterprise and commerce chief Richard Tice has stated.

Talking to POLITICO on Tuesday, Tice vowed to ditch the U.Okay.’s new carbon border adjustment mechanism (CBAM) as a part of a broader rollback of local weather levies.

Reform would look “to advertise oil and gasoline, but additionally scrap all these levies and inexperienced taxes, CBAM, the whole thing of all of it goes,” he stated.

Britain is at present drawing up its personal carbon tax regime — which might cost importers of carbon-intensive items a charge primarily based on their carbon emissions.

Ministers plan to hyperlink the regime to the EU’s equal scheme as a part of their wider effort to reset post-Brexit commerce ties — in a transfer designed to protect British exporters from being hit by Brussels’ carbon border tax.

Enterprise teams warn that scrapping the system may backfire.

“It's an phantasm that slicing CBAM or slicing carbon costs would have a long-term profit for U.Okay. competitiveness,” stated Adam Berman, director of coverage and advocacy at Power UK.

The short-term consequence of scrapping the coverage, he argued, can be to depart British exporters going through “a considerable new tax on the border on their exports with Europe.”

In the long run, Britain can be more and more locked out of key markets, not simply Europe, Berman stated.

“Main buying and selling blocs world wide are doing the identical factor,” stated Berman. “In that context, we're going to see a proliferation of CBAMs world wide. China doesn’t have one immediately, however you will be sure they are going to implement one sooner or later sooner or later.

“India doesn’t have one immediately, however we will be completely sure that it'll come as quickly as they've a sturdy home carbon value. They'll wish to defend their industrial base from unfair competitors.”

Tice warns EU ‘change is coming’

Tice made clear the carbon border tax wouldn't be the one casualty.

<img width="1024" height="683" src="https://www.politico.eu/wp-content/uploads/2026/01/27/13668723-1024x683.jpg" alt="" class="wp-image-7831740" srcset="https://www.politico.eu/cdn-cgi/image/width=1024,quality=80,onerror=redirect,format=auto/wp-content/uploads/2026/01/27/13668723.jpg 1024w, https://www.politico.eu/cdn-cgi/image/width=300,quality=80,onerror=redirect,format=auto/wp-content/uploads/2026/01/27/13668723.jpg 300w" /> Reform UK has already pledged to shred Keir Starmer’s EU reset in the event that they get into energy. | Pool photograph by Andy Rain through EPA

“There are going to be features that this authorities is negotiating with the EU that we are going to unwind instantly,” he stated. “There will likely be some important renegotiations in quite a lot of totally different areas.”

Reform has already pledged to shred Keir Starmer’s EU reset in the event that they get into energy — with the EU reportedly weighing a “Farage-clause” to guard the deal from regressing.

Aside from CBAM, Tice pointed to a number of features of the reset, together with the agri-food deal, Erasmus participation, and the SAFE mortgage program for protection procurement.

“They should perceive that change is coming,” he warned.

“We shouldn’t be paying huge quantities of cash for SAFE, we shouldn’t be rejoining Erasmus at huge price for no profit to ourselves in any way,” he added. “We shouldn’t be dynamically aligning with any of their guidelines. Keep in mind, that is an EU the place, despite the fact that we’re flatlining, truly, Germany and France’s economies are in even worse form than our personal. Why would you handcuff your self to a failing financial mannequin?”

‘Professional-British’ procurement push

Alongside the rollback of inexperienced levies, Tice signaled a extra interventionist industrial technique at residence.

Extra particulars on a pro-British procurement technique will likely be unveiled subsequent week, he stated, centered on a “robust presumption in favor of shopping for metal manufactured within the U.Okay.”

The proposed metal mandate would apply to infrastructure together with rail, protection, housing development and public buildings. Tice additionally stated the brand new mega Chinese language embassy ought to be constructed utilizing British metal.

Tice acknowledged there are limits to how far such a coverage may go. A blanket mandate to make use of British metal dangers breaching World Commerce Group non-discrimination guidelines — a authorized constraint that may must be navigated.