The proposal forms part of a broader Conservative commitment to bolster the armed forces after years of decline
Kemi Badenoch's Conservative Party has unveiled a major defence pledge on Armed Forces Day, committing to grow Britain's military reserves by more than half to reach 50,000 personnel, with no further burden on the taxpayer.
Under the proposal, reserve service would become tax-free for the first 30 days of each financial year, in a bid to address a crucial barrier to recruitment and compensate servicemen and women.
Currently, reservists who hold civilian jobs see their military earnings taxed at their highest marginal rate, which the Tories argue discourages enrollment.
The proposed policy would require recruiting some 18,000 additional reservists and forms part of a broader Conservative commitment to bolster the armed forces after years of decline.
Party leader Kemi Badenoch and Shadow Defence Minister Mark Francois visited Carver Barracks in Saffron Walden this week, addressing 300 soldiers on military priorities.
Mrs Badenoch said: "The first duty of a 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 the risk to our troops and make the country less safe.
"To fund our defence, Britain has to cut its welfare bill. That is why the Conservatives will restore the two-child benefit cap and use the money saved on defence."
Statistics show just 46 per cent of reservists fulfil their minimum service requirements, which typically range from 19 to 27 days per year.
The Conservatives aim to address both recruitment shortfalls and training completion rates to enhance military readiness amid looming threats from Russia and China.
Retention poses another obstacle, with nearly half of departing reservists citing "a lack of feeling valued by the service" as their primary reason for leaving.
The tax exemption proposed by the Conservatives would deliver meaningful financial incentives to those already serving, acting as recognition for their commitment.
A nurse holding the rank of Sergeant could see an additional £640 annually, whilst a software engineer serving as a Major could benefit by up to £1,910 per year.
Shadow Defence Secretary James Cartlidge pointed to Nato allies expanding their reserve forces amid growing global threats, while Britain remains committed to volunteer rather than conscripted service.
"For those who already have full-time jobs and want to serve their country, the last thing we should want is for them to be clobbered by the taxman for giving up their evenings and weekends," he said.
The initiative builds upon a previous Conservative pledge to expand the regular army by 6,000 troops, with a funding mechanism relying on restoring the two-child benefit cap, with savings redirected towards defence spending.
The Conservatives criticised Labour's absent Defence Investment Plan, originally promised for autumn last year, and highlighted recent resignations of both the Defence Secretary John Healey and Armed Forces Minister Al Carns over funding disputes.
Sir James Cleverly, a Lieutenant Colonel in the Army Reserve, stressed the urgency of expanding reserve numbers rapidly.
He said: "This sends a really powerful signal that we value those who serve in our Reserve forces. As an active reservist myself, I know this will mean a huge amount to those who stand up and serve."
Meanwhile, Tom Tugendhat, a veteran of both Iraq and Afghanistan who now serves as a Lieutenant Commander in the Royal Naval Reserve, warned how dangers facing the nation demand attention to defence.
He said: "By cutting reservists' taxes, we will encourage days on exercise and improve readiness, and give them a much-deserved vote of confidence and increase strength to 50,000, putting Britain in a stronger position to face down our adversaries."
Mark Francois MP, former Territorial Army Officer and Shadow Defence Minister, said: "The Conservatives are serious about supporting our Armed Forces. That’s why we’ll cut taxes for reservists and boost recruitment and retention.
"We are proud of our servicemen and women, and we will always have their backs", he added, casting doubt on prospective Prime Minister Andy Burnham's ability to rectify the money pit in defence.
Kemi Badenoch highlighted how Labour's Defence Investment Plan has woefully been delayed several times and is now 10 months late.
The Tory leader noted that while ministers claimed for months that they were "working flat out" to deliver the Dip, it is still nowhere to be seen, because "Labour doesn’t care about defence and would rather spend more money on welfare".