Reform Sets Out Plan to Back Britain’s Small Businesses

Reform Orpington

Reform UK has unveiled a package of tax and regulatory changes aimed at supporting Britain’s small businesses, with proposals including a higher VAT threshold, tax-free overtime and reductions in employment costs.

Shadow Chancellor Robert Jenrick announced the plans on 26 August, saying a Reform government would seek to make the UK a better place to start, operate and grow a small business.

Cutting Taxes and Costs

Central to the proposals is an increase in the VAT registration threshold from £90,000 to £150,000, which Reform estimates would immediately benefit around 320,000 small businesses.

The party has also pledged to reverse Labour’s National Insurance increase for British workers and introduce a Hard Work Bonus, under which employees earning less than £75,000 would pay no income tax on overtime worked beyond a 40-hour week.

Other measures announced include:

  • A £2,000 Apprentice Retention Bonus
  • Reversing inheritance tax changes affecting family businesses and farms
  • Expanding the Seed Enterprise Investment Scheme to make it easier for relatives to invest in family businesses
  • Scrapping the 2035 electric vehicle mandate
  • Replacing GDPR with what Reform describes as a lighter-touch privacy regime
  • Removing employment regulations the party believes make recruitment more difficult

Backing Employers and Apprentices

Reform says its plans are designed not only to reduce costs for businesses but also to make employing and training British workers more attractive.

The proposed apprenticeship measures would provide financial support for young apprentices and reward those who complete their training and remain with their employer.

The party has also proposed an unusual measure aimed at improving HMRC customer service: a £30 tax credit for people kept waiting more than 30 minutes on the telephone to HMRC, alongside greater accountability for senior officials over waiting times.

“The Backbone of Our High Streets”

Reform UK leader Nigel Farage described small businesses as the “beating heart of our economy”, arguing that taxation and regulation have placed increasing pressure on independent firms.

Shadow Chancellor Robert Jenrick said:

“Under a Reform government, the UK will be the best place in the world to start and grow a small business.”

He said Reform wanted government policy to give greater recognition to the role played by Britain’s millions of small businesses in local high streets and the wider economy.

The proposals form part of Reform UK’s developing economic programme, with the party promising lower costs, fewer regulations and greater incentives for businesses to invest, employ and expand.

Read the full announcement on the Reform UK national website.