Kemi Badenoch’s Conservative Party has announced a major defence pledge on Armed Forces Day, saying it would increase Britain’s military reserves by more than half to 50,000 personnel without adding extra cost to taxpayers.
Under the plan, reservists would get the first 30 days of their service each financial year tax-free, aimed at removing a key recruitment barrier and improving pay recognition for service.
At present, reservists with civilian jobs are taxed on their military earnings at their highest rate, something the Conservatives say puts people off signing up.
The policy would mean recruiting around 18,000 extra reservists and forms part of a wider Conservative push to rebuild the armed forces after years of decline.
Kemi Badenoch and Shadow Defence Minister Mark Francois visited Carver Barracks in Saffron Walden this week, where they spoke to around 300 soldiers about defence priorities.
Badenoch said: “The first duty of government is to defend the country. Yet two weeks ago, the Defence Secretary resigned, saying he was being forced to make decisions that would increase risk to our troops and make Britain less safe.”
She added: “To fund defence, Britain must reduce welfare spending. That’s why Conservatives will reinstate the two-child benefit cap and use the savings for defence.”
Figures suggest only 46% of reservists meet their minimum service requirements, usually between 19 and 27 days a year.
The Conservatives say the changes are designed to tackle both recruitment shortfalls and poor training completion rates, in the face of growing threats from Russia and China.
Retention is also an issue, with almost half of those leaving saying they did so because they did not feel valued.
The proposed tax exemption would provide extra financial support for serving reservists. A nurse at Sergeant rank could earn around £640 more a year, while a software engineer at Major rank could see up to £1,910 extra.
Shadow Defence Secretary James Cartlidge said NATO allies are expanding their reserve forces while the UK sticks with voluntary service.
“For those who already have full-time jobs and want to serve, they shouldn’t be penalised by the tax system for giving up evenings and weekends,” he said.
The plan builds on a previous Conservative pledge to expand the regular army by 6,000 troops, funded by restoring the two-child benefit cap and redirecting the savings into defence.
The party also criticised Labour over delays to its Defence Investment Plan, originally due last autumn, and pointed to recent resignations over defence funding disputes.
Sir James Cleverly, a Lieutenant Colonel in the Army Reserve, said: “This sends a strong signal we value those who serve. As an active reservist, I know it will mean a lot.”
Tom Tugendhat, a Royal Naval Reserve Lieutenant Commander and Iraq and Afghanistan veteran, said lowering taxes for reservists would boost participation and readiness.
He said it would help “increase strength to 50,000 and put Britain in a stronger position to face our adversaries.”
Mark Francois MP said the Conservatives were committed to supporting the Armed Forces, promising tax cuts for reservists alongside efforts to improve recruitment and retention.
He added they would “always have their backs,” while questioning Labour’s handling of defence funding.
Badenoch also criticised Labour over repeated delays to its Defence Investment Plan, saying it is now around 10 months late and still not published, claiming the government is prioritising welfare spending instead of defence.
