Key facts
- Robert Jenrick has pledged to increase the tax-free personal allowance from £12,570 to £15,000.
- This tax cut is proposed to be funded by £80 billion in planned government spending reductions.
- The proposal is expected to save most taxpayers around £500 per year.
- Jenrick stated a long-term goal to raise the allowance to £20,000 when fully affordable.
Robert Jenrick, a potential Chancellor if Reform UK gains power, has pledged to increase the tax-free personal allowance to £15,000 from its current £12,570. This significant tax cut, estimated to cost £21 billion, is framed as a commitment to "choose the worker" and is intended to benefit approximately 40 million taxpayers, potentially saving most individuals around £500 annually. The funding for this proposal would come from planned government spending reductions totaling £80 billion, with £52 billion earmarked from welfare reform. Jenrick also indicated a long-term ambition to further raise the personal allowance to £20,000 once fully affordable. The personal allowance has been frozen for five years, leading to 'fiscal drag' as wages rise, pushing more people into higher tax brackets. This proposal contrasts with current government policy, which has frozen tax bands until April 2031, and follows previous considerations by Andy Burnham to unfreeze the allowance.