Reform promises to increase tax-free personal allowance to £15,000
The party says the tax cut will be paid for by reducing public spending by £80bn.
Reform UK is promising to raise the tax-free personal allowance to £15,000 if they win the upcoming general election. Robert Jenrick, the party's economic spokesman, plans to introduce this tax cut within the first 100 days of Chancellorship. This policy is considered the party's flagship announcement and could be their most significant tax policy before the next election.
The increase of £2,430 in the threshold would save most taxpayers around £500 annually and disqualify 2.9 million people from paying income tax. The policy would cost the government £17.7bn in the first year, increasing to £21bn by the fifth year and could be funded through £80bn in public spending cuts. Jenrick, in his speech, will emphasize his commitment to making Britain a better place for workers.
He points out that 1.3 million people were pushed into paying taxes last year due to the frozen allowance, which has been at £12.5k since 2021. Reform's manifesto had proposed raising the threshold to £20,000, which remains his long-term goal.
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