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

AVERAGE annual wages could rise by £755 if Reform brings in three new tax policies, an analysis has shown.

- By Steph Spyro Deputy Political Editor

Plans laid out by Nigel Farage’s party may boost the UK’s growth rate by 0.2% each year, modelling by the TaxPayers’ Alliance found.

‘The TPA study said Reform’s proposals could mean £66billion added to the size of the economy after a decade.

It projected that average wages would be £755 higher at the end of that period and 35% of lost receipts from tax cuts would be recouped as a result.

The analysis suggested this would come from changes to inheritance tax, the personal allowance and the marriage allowances.

Darwin 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.

“But Reform UK’s policymakers have to clearly and cogently explain how they will ensure the spending restraint desperately needed for these plans to be fiscally credible.”