Tax Simplification — Major Reform Proposals Gaining Traction
A group of leading economists including Lord Jim O’Neill has called for replacing six major UK taxes with a single ‘National Contributions’ levy applying to all income. The proposals could generate an estimated £75bn annually while also replacing council tax and stamp duty with a property-based levy of around 0.48% of property value annually.
These remain proposals rather than Government policy, but with Burnham’s economic advisers directly linked to this group, and a Budget expected in the autumn, the proposals have added intensity to the debate around UK tax reform. Business owners with significant property assets, shareholdings or succession plans should be taking advice now rather than waiting for Budget day.
Business Rates — 52% Rise Forecast Over Three Years Despite Reform Pledges
Despite Burnham’s pledge to overhaul business rates, the FSB has warned that rates are expected to increase by 52% over the next three years under current indexation. Energy standing charges are also rising by 40%. For retail, hospitality and leisure businesses already operating on thin margins, the compound effect of these increases is severe.
Research cited by the Business and Trade Committee shows that a 1 percentage point reduction in business rates reduces the vacancy rate for eligible high street properties by 5%, underlining how directly rates affect the health of local economies. Reform can’t come soon enough for many high street clients.
Nearly 1 Million Young People NEET — Youth Jobs Grant Still Available
The 2026 Milburn Review, backed by Burnham, highlights that almost one million young people aged 16 to 24 are currently not in education, employment or training (NEET). The Youth Jobs Grant, £3,000 per eligible hire of an unemployed 18–24 year old, plus £2,000 for new apprentices aged 16–24, remains available and is a practical way for SMEs to access talent while reducing recruitment costs.
With Burnham expected to make youth employment a priority from day one, businesses that act now on the Youth Jobs Grant are well positioned to benefit from any enhanced support that follows.
Summer Holiday Spending Boost — 63% of Consumers Plan a Holiday
KPMG’s latest Consumer Pulse survey shows 63% of UK consumers are planning a holiday this summer, providing a meaningful boost to retail, hospitality, food and leisure businesses. For SMEs in those sectors, the summer trading period is more important than ever given the difficult first half of 2026, maximising cashflow through the summer months will be essential for building reserves ahead of what could be a challenging autumn.
HMRC Tax Investigations — Up to 8 Years to Resolve
New data confirms that HMRC tax investigations are taking up to eight years to conclude for the most complex cases, while enforcement activity is intensifying across the board. With the tax gap at £59.2bn and small businesses accounting for 62% of the shortfall, HMRC is under significant political pressure to close compliance gaps.
The best protection remains what it has always been: accurate records, timely filings, properly documented claims, and professional advice that keeps clients on the right side of the rules before HMRC comes knocking. Tax investigation insurance, such as Taxwise Protect, provides essential cover if an enquiry does arise.
JMJ offers Tax Investigation Service cover through Taxwise Protect. If any clients are not yet covered, this is a good time to raise it, HMRC activity is increasing and the cost of an unprotected investigation can be significant.