Robert Jenrick, a key figure in the Reform UK party and a potential Chancellor, announced Saturday a pledge to significantly increase the tax-free personal allowance to £15,000 within the first 100 days of a Reform government. He declared he would resign from his position if this promise is not fulfilled within that timeframe.
This proposed tax cut aims to remove 2.9 million individuals from income tax obligations. Jenrick stated that his "mission" is to enact the "biggest rise in the personal allowance in its history," which he claims would save a typical family approximately £1,000 annually. The current personal allowance has been frozen at £12,570 since 2021 and is set to remain at that level until 2031. This freeze, coupled with inflation, has increasingly impacted workers. Furthermore, an upcoming increase in the state pension to £13,000 is expected to push millions of pensioners into paying income tax.
Jenrick announced the measure at the Reform UK party conference in Birmingham, framing it as a choice between "welfare waste, foreign aid and migrants – or the British worker." He asserted that Britain currently faces the highest tax burden in recorded history. Reform UK's long-term ambition is to raise the personal allowance to £20,000.
The estimated cost to the Treasury for this tax allowance increase is £17.7 billion in the first year, projected to rise to £21 billion by the fifth year of a new Parliament. Jenrick outlined that funding for this initiative would come from an £80 billion reduction in spending on the welfare bill, Net Zero initiatives, and the foreign aid budget.
The announcement was made amidst controversy for Reform UK, following the suspension of aides Dan Jukes and James Orr over alleged attempts to circumvent electoral law, as reported in undercover filming aired by Channel 4. Nigel Farage, leader of Reform UK, commented on the tax pledge, stating it simplifies the tax system and addresses concerns that working individuals are not significantly better off than those who do not work. Farage also reiterated his prediction that Prime Minister Andy Burnham would call a general election in the spring.
Responses from other parties have been critical. A Labour Party spokesman suggested that Jenrick's announcement was an attempt to distract from recent scandals within his party. A Conservative Party source alluded to potential leadership ambitions for Jenrick, interpreting the pledge and resignation threat as a strategic move.
