Reform tax plans could add £755 to wages and boost sluggish economy

AVERAGE annual wages could rise by £755 after 10 years if Reform brings in three new tax policies, analysis suggests.

- By Steph Spyro

Tax policies laid out by Nigel Farage’s party suggested it could boost the UK’s growth rate by 0.2 percentage points each year, modelling by TaxPayers’ Alliance found.

However, even those sympathetic to the plan warned it must be accompanied by public spending cuts while the Tories branded it “fantasy economics” using “a magic money tree”.

The TPA study said Reform’s proposal could mean £66billion added to the size of the economy after 10 years, average wages would be £755 higher at the end of that period and 35% of the lost receipts from tax cuts would be recouped.

The analysis suggested this would come from changes to inheritance tax, the personal allowance and marriage allowances. Dawin Friend, head of research at the TPA, said:

“These Reform UK tax policies would make a significant difference in terms of boosting sluggish economic growth and should be taken seriously.

“Scrapping inheritance tax, an increase in the personal allowance and more generous provisions for married couples would make a real difference, although they need to be part of a complete transformation of the tax system.