politics
Opposition proposes tax cut for reservists to reach 50,000
The opposition has proposed making the first 30 days of reservist service tax-free each year. The plan would be funded by reinstating the two-child benefit cap and is projected to cost £44 million in the first year.
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The opposition has proposed offering military reservists a tax cut to increase the number of part-time members of the UK forces to 50,000. Shadow defence secretary James Cartlidge said reservists with full-time jobs are "clobbered by the taxman for giving up their evenings and weekends." A Conservative government would make a reservist's first 30 days of service per financial year tax-free.
Funding and cost estimates The policy would be paid for by money saved from reinstating the two-child benefit cap. Officials said implementing the policy would cost around £44 million in the first year, rising across the five-year parliament. Once the number of reservists reaches 50,000, the policy would cost an estimated £152 million per year.
The tax-free incentive itself would cost around £20 million per year.
Current reserve numbers and training The trained and untrained strength of the Army, RAF and maritime reserves was more than 32,000 on 1 January 2026, according to government statistics. The opposition also wants to ensure more reservists complete their minimum training days, which typically number 19 or 27 days.
A reservist who meets their minimum training commitment and passes their military training tests currently receives a tax-free bonus payment on top of their pay. The annual tax-free bounty was paid to 46% of reservists in 2024/25.
Government response Defence Minister Luke Pollard accused the opposition of leaving "recruitment and retention in crisis" after their 14 years in power. Pollard said the current government is rebuilding the military, including through increasing the size of strategic reserves.
Opposition leader statement Opposition leader Kemi Badenoch said the current government was "dithering" on defence funding. She said restoring the two-child benefit cap would free money for defence spending. Badenoch said: "We will give our reservists a tax cut, backing our military to keep our country safe and ensuring we can boost our reserve forces to 50,000."
