I was in the room when Nigel Farage railed against decline - 1 huge change stood out

The music was serene, the lights were low. Out went the thumping Trump-style anthems and in came the violins of Chopin. More than half the audience at Reform's press conference this morning came from business and "public affairs". City traders mingled with consultants like me. The message was clear: Reform is serious about running the economy. Just a year ago, most in business and lobbying circles barely considered Reform worth a meeting. Their 2024 conference was largely ignored by corporate Britain. Today was different. A show of force from Reform's business engagement team, Matthew MacKinnon and John Gill, after a relentless 12-month charm offensive.

Nigel Farage's answer to his party's comparatively low fiscal credibility (very slightly lower than the Tories but higher than Labour's, according to recent polls) was characteristically clear: Reform will cut taxes only after cutting public spending, shrinking what he calls our "bloated state." It's smart politics. Voters want both higher spending and lower taxes, an impossible mix. And while Tories and Labour talk of "hard choices," they've failed to explain the contradiction.

By linking spending cuts to future tax cuts, Farage may just persuade voters to accept the first for the promise of the second.

Liz Truss's fatal mistake was splurging without cuts. Labour's, pledging no tax rises while eyeing vast spending increases, especially in on public sector wages.

When I worked with Nigel in 2019, we had two problems. First, we never got as much airtime, so our economic announcements had to grab headlines, not project credibility.

Second, even when we had credible ideas, the media and civil service clung to the belief that only mainstream parties could manage the economy. That only they had the brains and business backing.

Those days are gone. Reform now dominates headlines. And after the chaos of Liz Truss and Rachel Reeves' budgets, the myth of establishment economic competence has all but collapsed.

Farage's announcements today weren't wildly different from Tory or Labour Right positions. But he delivers them with the type of conviction of force he is famous for. Alongside the usual lines on Tory "Net Zero waste" and immigration "pushing down wages," two moments stood out.

He praised the rich, calling for "as many high earners living in the country as possible". Unthinkable from Labour. And, noting the setting in London's financial district, he hailed the City as "one of the UK's leading sectors," pointing to his family's history in finance.

Bold words, given Reform still lacks a clear NHS policy. And a clear direction of travel.

Then, a pledge for "the biggest benefit cut you've ever heard any government ever do", slashing PIP for "mild anxiety" and insisting disability claims be signed off by independent practitioners, not GPs.

Predictably, most mainstream journalists asking questions at the event accused him of changing direction. The BBC and Guardian even claimed he was "breaking promises", pointing to past talk of nationalisation.

But what they misunderstand is this is, in fact, Farage returning to his Thatcherite roots. He has more pedigree in that tradition than almost anyone in politics today.

Yes, he admitted Reform had shifted on the two-child benefit cap, but only for "working parents", a detail "missed by the media," he quipped.

If he can pull off significant cuts to spending on sickness welfare, on foreign nationals, on the civil service, and Net Zero, we can stay true to his roots whilst also pursuing an industrial strategy and better services.

Today's performance indicates he has the mettle needed to wield the axe.