Chancellor John Healey has pledged to alleviate administrative burdens on small businesses by eliminating what he described as “pointless paperwork” in the upcoming Budget on October 28. This move is part of a broader effort to address the cost of doing business and boost economic growth, particularly among entrepreneurs.
Healey announced plans to remove the requirement for small companies to file full profit and loss accounts with Companies House, the UK’s corporate registry. The government estimates that reducing this regulatory red tape could save businesses up to £800 million annually. The proposal reverses a previous decision by Peter Kyle to reintroduce these filing requirements by 2028, a move that Jonathan Reynolds, the current business secretary, had initially reversed when he served under Sir Keir Starmer.
Officials close to Healey indicated that the Budget will focus on supporting new and small enterprises, especially young entrepreneurs. “We should not be putting up barriers for our best and brightest, we need to make it easier,” one source said, highlighting the government’s intent to foster a more business-friendly environment.
The chancellor’s plan has received cautious approval from the Federation of Small Businesses. Interim national chair Tina McKenzie described the change as “a huge step in the right direction,” noting that it would relieve smaller firms that have limited resources for handling regulatory demands.
In addition to changes affecting company filings, the government intends to simplify the home-buying and selling process. This streamlining is expected to benefit service providers such as conveyancers by saving them an estimated £116 million annually. Furthermore, Healey outlined intentions to make it easier for small businesses to compete for public sector contracts.
Business rates, another significant cost for small firms, remain a key focus. Since taking office, Prime Minister Burnham has implemented a 20 percent reduction in business rates for pubs, clubs, and music venues. Further relief is anticipated in the upcoming Budget, with plans to extend cuts to additional high street businesses such as cafés and hairdressers. The government is also expected to raise the rateable value threshold at which companies become liable for business rates, from £12,000 to £18,000, fulfilling a pledge made by Burnham earlier this year.
However, questions remain about whether changes to employment costs, particularly national insurance contribution thresholds, will be addressed at this time. Such shifts are likely to await recommendations from former cabinet minister Alan Milburn, who is working on solutions to the challenges facing young people outside of work, education, or training.
Healey and Burnham have spent recent weeks reassuring business leaders that their first Budget will prioritize economic stability and growth, seeking to maintain confidence amid a fragile recovery. Their combined agenda emphasizes support for small, local businesses as an integral part of a broader strategy to promote growth across the country.