Andrew Griffith tells Burnham to rule out Budget tax rises

Shadow chancellor Andrew Griffith has called on Labour leader Andy Burnham and Chancellor John Healey to refrain from proposing tax increases for businesses in the upcoming Budget on October 28th. Griffith argues that the Conservative Party's plans to reduce the compliance burden faced by small firms and the self-employed necessitate a simpler tax system and a halt to the expansion of Making Tax Digital.

Griffith is scheduled to deliver a speech at Capital City College Group in London, criticizing Labour for "squeezing small businesses dry" and suggesting that their tax system is overly complex, making it difficult for businesses to thrive. The Federation of Small Businesses estimates that tax compliance costs for smaller firms amount to £25 billion per year, with an average business dedicating 44 hours annually to tax administration.

Griffith's review, led by Conservative peer Lord Mackinlay and outgoing Centre for Policy Studies director Robert Colvile, will be released in December. The review will assess HMRC's performance, the complexity of filing returns and claiming reliefs, and the tax treatment of the self-employed. It will also examine the IR35 off-payroll working rules' impact on compliance costs. The Conservatives have previously pledged to reform IR35 and improve the accountability of HMRC toward small businesses.

Reform UK, a party targeting small businesses with tax and regulatory policies, has criticized Griffith's announcement. Reform shadow chancellor Robert Jenrick accused Griffith of dismissing the Office of Tax Simplification while in power, questioning his ability to address the issue now. Reform has proposed raising the VAT registration threshold from £90,000 to £150,000, reducing employers' National Insurance contributions, and replacing GDPR with a more lenient privacy regime.

Jenrick emphasized that merely asking Labour not to raise taxes is insufficient; Britain requires a significant shift in direction, not merely empty promises from a stagnant opposition that had the opportunity to fix the system previously.