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Reform UK pledges to increase tax-free personal allowance to £15,000

Reform UK has announced a policy to raise the tax-free personal allowance to £15,000, which it states would be funded by £80bn in public spending cuts.

  • Reform UK plans to increase the tax-free personal allowance to £15,000 if it wins the next general election.
  • The party estimates this policy would cost £17.7bn in its first year and would be paid for by £80bn of public spending cuts.
  • The proposed tax cut is estimated to save most taxpayers £500 annually and remove 2.9 million people from paying income tax.

Reform UK has pledged to increase the tax-free personal allowance to £15,000, a move the party says would be implemented within the first 100 days if it forms the next government. Robert Jenrick, Reform's economic spokesman, stated this would provide "money that people really need right now."

The party estimates that raising the tax-free threshold by £2,430 would save most taxpayers £500 a year, and 2.9 million people would no longer pay income tax. Reform UK calculates the policy would cost £17.7bn in the first year, rising to £21bn by the fifth year.

To fund this, Reform UK plans £80bn in public spending cuts. These proposed cuts include a £50bn reduction in welfare spending, which the party says would not affect the state pension. Other funding sources mentioned include scrapping net-zero programmes to raise £10bn, reducing civil servant numbers for £8bn, and capping the foreign aid budget for £7.1bn.

What this means for you: If implemented, the proposed increase in the tax-free personal allowance could save most taxpayers £500 annually and potentially remove 2.9 million people from paying income tax.

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