Reform UK Pledges £15,000 Tax-Free Allowance Funded by £80 Billion in Spending Cuts
Updated
Updated · bbc.co.uk · Sep 5
Reform UK Pledges £15,000 Tax-Free Allowance Funded by £80 Billion in Spending Cuts
3 articles · Updated · bbc.co.uk · Sep 5
Summary
£15,000 is the tax-free personal allowance Reform UK says it would introduce within 100 days of taking office, in what the party sees as its flagship pre-election tax policy.
£17.7 billion is the first-year cost Reform attaches to the plan, rising to £21 billion by year five; it says most taxpayers would save about £500 a year and 2.9 million people would pay no income tax.
£80 billion of proposed spending cuts would fund the pledge, including £50 billion from welfare, £10 billion from scrapping net-zero programmes, £8 billion from cutting civil servants and £7.1 billion from capping foreign aid.
The welfare savings are likely to draw scrutiny because Reform says state pensions would be protected, leaving disability benefits and some support for foreign nationals as key targets.
The proposal attacks a personal allowance frozen since 2021 and by Labour until 2031, while Reform says its longer-term goal remains a £20,000 threshold.