Labour vs Reform UK on tax: how they compare
Two very different tax offers: Labour holds the headline rates but freezes thresholds and broadens the base; Reform UK proposes the largest personal tax cuts of any party.
Labour
- Pledges no rise in the rates of income tax, National Insurance or VAT.
- Freezes the personal allowance and thresholds to 2031 — a stealth rise via fiscal drag.
- Added 20% VAT to private school fees and abolished non-dom status to raise revenue.
- Raised capital gains tax rates rather than introducing a wealth tax.
Reform UK
- Raise the income-tax personal allowance to £20,000 and the 40% threshold to £70,000.
- Cut stamp duty to 0% below £750,000.
- Cut corporation tax from 25% to 20%, then 15%, and abolish IR35.
- The most expensive tax-cutting platform — costings are contested.
The bottom line
For most workers, Reform proposes much larger personal tax cuts (potentially £1,000s a year), while Labour keeps rates steady but raises more through frozen thresholds and a broader base. Use the calculators to see your own figure.
Frequently asked questions
Which party would cut my income tax the most?
Of these two, Reform UK — raising the personal allowance to £20,000 and the 40% threshold to £70,000 would save most workers roughly £1,486 a year, and more for higher earners. Labour pledges no rise in rates but freezes thresholds, which raises tax over time.
Would Labour raise income tax?
Labour has pledged not to raise the rates of income tax, National Insurance or VAT, but freezing the thresholds means many people pay more over time through fiscal drag.