UK Shadow Chancellor urges Labour to rule out small business tax rises

Shadow Chancellor Andrew Griffith is calling on the Labour government to rule out further tax increases on small businesses and the self-employed in the upcoming October 28 Budget. Griffith criticized current policies, stating that Labour is “squeezing small businesses dry” through high taxes and a complex compliance system.

To address these issues, Griffith announced a taskforce led by Lord Mackinlay and Robert Colvile to review the tax burden on small enterprises, with a report expected in December. The initiative aims to reduce the administrative burden, which the Federation of Small Businesses estimates costs firms £25 billion annually, while HMRC estimates the cost at £15.4 billion.

Simultaneously, the Association of Chartered Certified Accountants (ACCA) has urged Chancellor John Healey to avoid new compliance obligations. The ACCA’s call follows reports of a £59.2 billion tax gap for the 2024–25 tax year, with corporation tax accounting for 35% of that deficit. The organization is advocating for a comprehensive review to simplify the tax framework and reduce errors.