Reform UK has pledged to increase the tax-free personal allowance to £15,000 if the party wins the next general election. Robert Jenrick, the party's economic spokesman, is set to announce the policy at the party conference in Birmingham, stating it would be implemented within the first 100 days of taking office as chancellor.

This policy is being highlighted as a central announcement for Reform UK's conference and a significant tax proposal leading up to the next general election. The party estimates that raising the threshold by £2,430 would result in most taxpayers saving £500 each year. A further projection suggests that approximately 2.9 million individuals would no longer be liable for income tax.

Reform UK calculates the initial cost of this tax cut at £17.7 billion in its first year, projected to rise to £21 billion by the fifth year. The party intends to fund this by implementing £80 billion in public spending cuts. Jenrick is expected to state in his speech that his primary objective as chancellor would be to "make Britain a better place to be a worker than it was the day before."

Jenrick is also expected to criticize the current freeze on the tax-free allowance, which has remained at £12,500 since 2021 and is slated to continue until 2031 under Labour's plans. He plans to highlight that this freeze costs a full-time minimum wage worker over £750 annually and has led to the state pension becoming subject to taxation.

In its 2024 general election manifesto, Reform UK had previously indicated an ambition to raise the threshold to £20,000. Jenrick is expected to reaffirm this as the party's long-term objective during his conference address.

The proposed funding for the tax cut includes a £50 billion reduction in welfare spending. While state pensions constitute half of the £353 billion welfare budget, Reform UK has stated it would not reduce this portion. Instead, the party aims to decrease spending on disability benefits and restrict certain benefits for foreign nationals.

Additional proposed savings include £10 billion from scrapping "net-zero" programs, £8 billion from reducing the civil service workforce, and £7.1 billion by capping the foreign aid budget. Jenrick mentioned that Reform UK would also achieve savings by eliminating "waste," such as discontinuing foreign aid to wealthy nations, emphasizing a focus on domestic priorities.

Regarding environmental policies, Jenrick suggested that the UK's contribution to global emissions is small, and accelerating decarbonization faster than other countries is economically detrimental to the UK. He indicated that the party believes in supporting disaster relief but the majority of the foreign aid budget should be allocated to national priorities.