The Reform UK tax-free allowance could rise from £12,570 to £15,000 if the party wins the next general election.
Robert Jenrick, Reform UK’s economic spokesman, has promised to introduce the increase within the first 100 days of taking office as chancellor.
He said the measure would give workers more money at a time when household finances remain under pressure.
Reform Puts Tax Cut at Centre of Plans
The proposed increase is one of Reform UK’s biggest tax announcements.
Under the plan, the personal allowance would increase by £2,430.
The party estimates that most taxpayers would save around £500 a year. It also says about 2.9 million people would stop paying income tax altogether.
Reform currently wants to raise the threshold to £15,000. However, the party’s longer-term goal remains £20,000, which it included in its 2024 general election manifesto.
Jenrick Promises Quick Action
Jenrick has pledged to deliver the tax cut in his first Budget.
He has also made a strong personal commitment to the proposal.
If he failed to introduce the measure in his first Budget, Jenrick said he would resign as chancellor.
The promise is designed to present Reform as a party focused on reducing the tax burden on working people.
How Would Reform Pay for the Tax Cut?
Reform estimates that the allowance increase would cost about £17.7bn in the first year.
By the fifth year, the annual cost could reach around £21bn.
The party says it would fund the measure through major reductions in public spending.
Reform has identified around £80bn in potential spending cuts across government.
A significant part of the proposed savings would come from welfare spending.
Welfare Cuts Form Part of the Plan
Reform has proposed reducing welfare spending by around £50bn.
The party has made clear that it would not target the state pension as part of those reductions.
Instead, Jenrick said Reform would focus on other areas of welfare spending.
He also suggested that benefits should not go to people who are not British citizens and argued that more people unable to work because of mental health problems should receive support to return to employment.
Foreign Aid and Net Zero Spending
Reform also plans to reduce spending in other areas.
Jenrick said the party could save money by reducing foreign aid, while continuing to provide assistance during major disasters.
He argued that the UK should focus more of its resources on domestic priorities.
The party also wants to scrap some net-zero programmes. Reform estimates that this could save around £10bn.
It argues that the UK’s share of global emissions is relatively small and that Britain should not move faster than other countries at the expense of household finances.
Reform Wants a Smaller Civil Service
Another part of the proposal involves reducing the number of civil servants.
Reform estimates that this could save around £8bn.
The party also expects to save billions by limiting the foreign aid budget.
Together, these measures form the financial basis of its proposed tax cuts.
However, the scale of the planned savings would face close scrutiny if Reform entered government.
Current Personal Allowance Remains Frozen
The UK’s personal allowance currently stands at £12,570.
The threshold has remained unchanged since 2021.
As a result, more workers have been pulled into paying income tax as wages increase.
People earning more than £100,000 also face a gradual reduction in their personal allowance.
For every £2 earned above £100,000, the allowance falls by £1.
Political Pressure Over Tax Thresholds
The frozen personal allowance has become an increasingly important political issue.
Reform argues that keeping the threshold unchanged has increased the tax burden on ordinary workers.
The party says Labour’s decision to keep the allowance frozen until 2031 will push more people into paying income tax.
Meanwhile, Labour has indicated that changes to the tax system could be considered in future Budgets.
However, ministers face significant pressure over the UK’s financial position and the cost of any major tax reductions.
Reform Faces Separate Donations Controversy
The tax announcement comes as Reform deals with a separate controversy involving party officials and political donations.
Two senior aides are being investigated following an undercover report about discussions concerning potential foreign donations.
The Electoral Commission has said it is considering relevant information and is in contact with police.
Reform leader Nigel Farage has denied that the party accepted illegal money.
Jenrick also said the party had taken legal advice and did not believe it had broken the law.
What Happens Next?
For now, the £15,000 personal allowance remains a Reform UK proposal rather than government policy.
The party will need to convince voters that it can deliver the tax reduction while also achieving its proposed spending cuts.
If Reform wins power, Jenrick says he would act within his first 100 days.
The proposal could therefore become one of the party’s defining economic policies ahead of the next general election.
For millions of workers, the key question will be whether Reform can deliver the promised tax savings while maintaining the public services that depend on government funding.
