Tax cuts & a new system: What the Reform manifesto means for you
Alongside the Green Party manifesto, Reform policies, if enacted, would be a sea change for workers, savers and investors. There would be an income tax exemption for front-line NHS workers while non-NHS workers would be able to earn £20,000 before paying income tax. A married couple where only one partner worked would receive an additional £5,000 relief as part of an upgraded 'marriage tax allowance'.
The 40 per cent higher rate tax threshold, currently £50,250 and frozen until 2027, would rise to £70,000. The stamp duty threshold would also increase to £750,000 and inheritance tax would be abolished for all estates worth less than £2mn. The tax burden is a key line of attack from Nigel Farage's party, rallying against policies likely welcomed by traditional Conservative voters.
Elsewhere, higher-rate VAT would be reduced to 18 per cent, and scrapped for energy bills (where the rate is 5 per cent), which the Party said would save households £300 a year while drivers save £240. Self-employed workers could also benefit, with IR35, which requires companies to treat freelancers who only work for them as normal employees, being scrapped.
Business and the economy
Much of the tax cuts would be funded by reducing the size of the state, introducing an immigration tax and moving away from Net Zero. The Party would abandon all carbon emissions targets and scrap green subsidies. In a boon for oil and gas stocks, Reform would accelerate North Sea exploration licenses.
Corporation tax would also be reduced to 20 per cent from 25 per cent while those with profits of less than £100,000 would not pay.
More tax cuts for families and students
Interest on student loans would be reduced to further cut the tax burden on workers, while in sharp contrast to Labour's policy to make private schools pay VAT, Reform would offer private schools additional tax relief, although there's no guarantee this would work it's way into lower fees for parents.
In terms of pensions, Reform says it wants to "improve the savings and pensions system" and cited Australia's 'Super' model as inspiration, where workers pick their pension and employers pay into that. The policy was also suggested by the Conservative government in the Autumn Statement. TL
June 19, 2024
