Reform UK announce major tax threshold plan in landmark Richard Tice speech | Personal Finance | Finance

Reform UK‘s Richard Tice has said that the amount at which people first start to pay income tax should be lifted from £12,570 to £20,000.

He said the policy would mean Britons taking home an extra £1,500 in pay each year, almost £30 a week.

He said: “Crucially that frees up seven million people from paying income tax at all, which just proves that Reform UK is the party of the workers.

“It will also change that calculation for many people trapped on benefits: Does it pay to go to work, how many hours a week or not?

“Work is a great thing. It’s mentally stimulating, it’s good for your health, it’s good for your family, it’s a great example to your children and to your local community.

“The more poeple we get off benefits, that also helps the Treasury in terms of the finances.”

Mr Tice said raising the personal allowance would cost around £40billion, and this would be paid for by rearranging “the way Bank of England organisers interests the debt payments” on quantative easing and the money it printed during the coronavirus pandemic.

Other challenger political parties have previously suggested increasing the personal allowance, with George Galloway’s Workers Party of Britain calling for it to increase to £21,200.

“This is definitely positive news for those in receipt of the state pension, but it does introduce some wider challenges.

“For instance, if the nil-rate band for everyone else does not increase simultaneously, there will be concerns about intergenerational fairness as workers would pay tax on a higher proportion of their income than pensioners.

“Particularly as that tax funds the payment of the state pension and the age that younger workers will start to receive their state pension keeps getting pushed further and further into the future.”

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