Reform UK is set to announce an increase to the tax-free allowance to £15,000, as Robert Jenrick is set to outline the plan for the record-breaking increase.
The party’s economic spokesman is set to outline the change as part of the first Budget that Reform would implement in their first 100 days in Government at the Reform UK National Conference.
The increase would be the single largest increase to the tax-free allowance in history, saving the majority of taxpayers around £500 a year.
The change would also take 2.9 million people out of income tax and benefit 40 million people overall.
The state pension would also remain untaxed thanks to the change.
Mr Jenrick will promise to deliver the increase in his first Budget and to hold that Budget within 100 days of a Reform government being elected.
The change would come after a five-year freeze on the tax-free allowance under both Labour and Tory governments, which has left the allowance £3,500 lower than it would have been otherwise.
The increase would cost £17.7billion in the first year, rising to £21billion by the fifth year of the Parliament and would be funded by £80billion in savings Reform has already identified.
Robert Jenrick is set to announce that Reform UK would increase tax-free allowance at the Reform UK National Conference
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That includes £52billion from welfare reform, £7billion a year by cutting the foreign aid budget, £10billion by ending net zero subsidies, £7billion by reducing civil servant and Quango headcount.
Mr Jenrick is set to make his speech later today.
He is expected to say: “There has never, in our lifetimes, been a worse time to be a worker in Britain.
“As chancellor, I will wake each morning with one purpose. To make Britain a better place to be a worker than it was the day before.
Robert Jenrick’s first budget would come within 100 days of Reform taking over Government
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“In the first hundred days of a Reform government, in our first Budget, we will raise the tax-free personal allowance from £12,570… to £15,000.”
He is also set to challenge Prime Minister Andy Burnham to match his commitment and say: “The hard choice for Burnham and for us is exactly the same. It’s either welfare waste, foreign aid and migrants — or the British worker.
“We choose the worker.
“When we can — only when it is paid for in full — I will go further, step-by-step, until we’ve reached Reform’s ambition of a £20,000 tax-free allowance.”
The announcement comes just a day after Richard Tice set out policy on electricity and gas bills, scrapping carbon taxes on generators and permanently removing VAT from consumer energy bills.
The plan includes removing the tax on gas generators from the UK Emissions Trading Scheme and the Carbon Price Support.
Mr Tice also set out the party’s intention to repeal a number of policies which they claim will increase gas and electricity bills, such as the Renewables Obligation, Feed-in Tariffs, Warm Homes Discount and Green Gas Levy.
They say these represent an extra £80 on household energy bills.