Reform UK proposes £20,000 tax-free threshold in pre-election pitch

Mace | 28th May 2025 | Policy & Think Tanks, Politics

Merthyr,Tydfil,,Wales,,Uk.,June,17,2024:,Nigel,Farage,,Leader

Reform UK has proposed raising the personal tax allowance to £20,000, a policy expected to cost up to £80 billion. The party plans to fund it by scrapping net-zero commitments and cutting public spending. Economists warn of fiscal risks, citing the absence of detailed costings or independent review.

Nigel Farage’s Reform UK party has proposed raising the personal income tax threshold to £20,000. The current personal allowance stands at £12,570, meaning the policy would exempt an additional £7,430 of earnings from tax. Reform UK argues this would benefit working people across income bands. Independent estimates suggest the policy could cost the Treasury between £40 billion and £80 billion annually, depending on secondary effects and policy design. To cover the cost, the party proposes scrapping the UK’s net-zero policies. It argues that ending subsidies and obligations tied to decarbonisation would yield significant savings. Reform UK has pointed to renewable energy subsidies, electric vehicle incentives and building efficiency standards as areas for rollback. The Climate Change Committee estimated government climate spending at around £22 billion annually in its 2023 report. Reform UK also plans deep cuts to public spending. The proposals include reducing the civil service headcou...

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