Britain’s Army reservists would receive a tax-free pay boost under new Conservative plans to strengthen the nation’s Armed Forces, as Kemi Badenoch accused Labour of failing in its “first duty” to keep the country safe.
The proposal, unveiled on Armed Forces Day, would make the first 30 days of reserve service each year completely free from income tax in a bid to increase recruitment and retain experienced volunteers.
Senior Conservatives say the measure could increase recruitment by more than 50 per cent while rewarding thousands of reservists who balance military service with full-time civilian careers.
At present, reservists pay income tax on their military earnings at their highest marginal rate, meaning many hand over a significant portion of the extra income they earn by serving evenings, weekends and annual training commitments.
The Conservatives argue the change would put meaningful sums back into reservists’ pockets. Under party estimates, a nurse serving as a Sergeant would keep around £640 more each year, while a software engineer holding the rank of Major could be almost £1,910 better off.
The policy is also designed to tackle retention problems within the Reserve Forces. Almost half of those leaving the reserves say they do not feel valued, while only 46 per cent currently complete their minimum annual training requirement.
The party says boosting participation would improve Britain’s military readiness as security threats continue to grow across Europe.
Mrs Badenoch said: “The first duty of a government is to defend the country. Yet two weeks ago the Defence Secretary resigned saying that he was being forced to make decisions that would increase the risk to our troops and make the country less safe.”
She added: “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. By contrast, Labour are dithering and Reform don’t even have a Defence Spokesman.”
The Conservatives say the policy would be funded by restoring the two-child benefit cap, with the resulting savings redirected towards defence spending.
Shadow Defence Secretary James Cartlidge said reservists should not be “clobbered by the taxman” for serving their country, adding that the Conservatives would back Britain’s “citizen soldiers.
Former Foreign Secretary Sir James Cleverly, who serves as a Lieutenant Colonel in the Army Reserve, described the proposal as “a really powerful signal that we value those who serve”.
The announcement intensifies political pressure on Labour over defence spending. The Government’s long-promised Defence Investment Plan, originally expected in autumn 2025, is now around ten months overdue after being delayed multiple times.
The issue has been further complicated by the recent resignations of both the Defence Secretary and the Armed Forces Minister from Sir Keir Starmer’s Government following disagreements over military funding.
Labour leadership frontrunner Andy Burnham has yet to outline whether he would significantly increase defence spending, leaving questions over the future direction of Britain’s Armed Forces.
Shadow Defence Minister Mark Francois said: “The first duty of any Prime Minister is to keep our country safe. But right now, neither Keir Starmer nor Andy Burnham has a plan for how to do it.
The Conservatives argue that their proposed tax break would both reward those already serving and encourage thousands more Britons to join the reserves at a time when the UK’s military faces growing recruitment and retention challenges.
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