Nigel Farage says Reform will raise tax-free earnings to £20,000 | Personal Finance | Finance
Nigel Farage has unveiled ambitious plans for his Reform party to “reindustrialise” Britain, amid a public drive to increase the tax-free income threshold to £20,000. His announcement comes in the wake of a popular parliamentary petition—amassing more than 245,000 supporters—that calls for a significant rise in the salary one can earn before being taxed, up from the current £12,750.
The effort, initiated by Alan David Frost on the Parliament website, has captured substantial support. This bustling campaign is pushing for the Government to elevate the taxable income baseline from today’s £12,750 to an annual £20,000, a proposal now slated for debate in the House of Commons on May 12.
Mr Farage outlined his vision on Tuesday, saying: “Reform will reindustrialise Britain and we’ll have a proper, sound industrial policy, but it only works if we start producing enough of our own gas and oil and coal, and all of those things.”
He went on to criticise the static nature of the taxation commencement level, highlighting: “We believe the most dramatic tax change that is needed is to lift the level at which people start paying tax to £20,000 a year.”
In doing so, he argued this would make a tangible difference: “That will mean people on low pay genuinely will be a bit better off. But equally important, it would incentivise those on benefits, who know that if they work for more than 16 hours a week, all their benefits will be taken away. It would incentivise them to get back to work. So I firmly believe that we are the party of working people.”
The petition’s text reads: “Raise the income tax personal allowance from £12,570 to £20,000. We think this would help low earners to get off benefits and allow pensioners a decent income. We think it is abhorrent to tax pensioners on their state pension when it is over the personal allowance. We also think raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy, creating growth.”
On February 20, the Labour Government issued a response, stating: “The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility. The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.
“The Government has no plans to increase the Personal Allowance to £20,000. Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost of many billions of pounds per annum.
“This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on. It would also undermine the work the Chancellor has done to restore fiscal responsibility and economic stability, which are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible.
“The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.”
The petition and the Government’s full response can be accessed online.
