Story perspectives

UK Treasury Considers £2B Tax Hike on Small Businesses

8/31/2025

30 7

Center

Treasury Considers Tax Increase

The UK Treasury is contemplating a £2 billion tax increase on small businesses by lowering the VAT registration threshold from £90,000 to £30,000.
Key Treasury officials, including Torsten Bell and Dan York-Smith, support this proposal.
Business leaders caution that this could negatively impact entrepreneurs.
Some economists believe the current threshold incentivizes firms to restrict their turnover.
The Treasury seeks to resolve a £50 billion public finance deficit.

Right

Reeves Proposes Landlord Tax

Rachel Reeves is considering a tax on landlords' rental income to generate £2 billion for the autumn Budget.
The proposal may apply National Insurance to rental income, which is currently exempt.
Approximately 360,000 landlords could incur annual costs over £1,000 if the tax is enacted.
This initiative seeks to mitigate a substantial public finance deficit in the UK.

1 of 2

Treasury Considers Tax Increase

The UK Treasury is contemplating a £2 billion tax increase on small businesses by lowering the VAT registration threshold from £90,000 to £30,000.
Key Treasury officials, including Torsten Bell and Dan York-Smith, support this proposal.
Business leaders caution that this could negatively impact entrepreneurs.
Some economists believe the current threshold incentivizes firms to restrict their turnover.
The Treasury seeks to resolve a £50 billion public finance deficit.

1 / 2