Reform Promises £15,000 Tax-Free Personal Allowance Increase
BBC News reports that Reform UK is pledging to boost the tax-free personal allowance to £15,000 if it wins the next general election. Robert Jenrick, Reform's economic spokesman, plans to introduce this tax cut within 100 days of becoming chancellor.
Key Points:
- Increase in Allowance: The threshold would rise by £2,430, saving most taxpayers £500 annually and allowing 2.9 million people to stop paying income tax altogether.
- Implementation: Jenrick aims to implement this change within his first 100 days as chancellor.
- Cost and Funding: Reform estimates the policy would cost £17.7bn in the first year, rising to £21bn by the fifth year. They propose funding it through £80bn in public spending cuts.
- Long-Term Goal: The party's manifesto aims for a £20,000 allowance, with Jenrick reaffirming this goal at the conference.
- Welfare Spending: Reform plans to cut £50bn from welfare spending, targeting disability benefits and foreign nationals' benefits while preserving the state pension.
- Additional Measures: They also propose reducing civil servant numbers by £8bn and capping foreign aid at £7.1bn to further reduce costs.