UK plans tax reforms to boost small business growth.
The UK’s finance minister, Rachel Reeves, announced plans to explore reforms to business property taxation on 11 September 2025, aiming to ease expansion for small enterprises and stimulate economic growth.
The proposed changes target the current system of business property taxation, commonly referred to as rates, which can impose steep increases on small firms when they grow. A newly released finance ministry report suggests smoothing these “cliff-edges” and making reliefs more equitable to encourage investment.
Economists widely expect Reeves to have to raise tens of billions of pounds in additional revenue, driven by rising borrowing costs, weaker growth prospects, and parliament’s rejection of welfare cuts.
