Government unveils plans to save UK businesses £800m a year

The Government has announced a package of measures aimed at reducing regulatory and administrative burdens on UK businesses, with estimated savings of almost £800m a year through simplified reporting requirements and extended import tariff suspensions.

Unveiled by Chancellor John Healey ahead of next week’s Autumn Budget, the proposals are designed to give businesses more time and resources to invest, expand and create jobs.

The measures follow recommendations from the Small Business Regulatory Taskforce, which has been working with businesses and industry representatives to identify unnecessary bureaucracy and reduce compliance costs.

According to the Government, the reforms could deliver more than £600m in annual administrative savings, alongside up to £155m from extending tariff suspensions on imported goods.

Simplified reporting requirements for businesses

A significant element of the package involves streamlining company reporting requirements, which the Government estimates could save businesses up to £290m annually.

This includes pausing the requirement for the smallest companies to file profit and loss accounts with Companies House, which had been scheduled to take effect in April 2028.

Businesses operating as part of a wider national group could also benefit from reduced reporting requirements, with potential savings of up to £20,000 per year.

The Government also plans to eliminate duplicated reporting requirements for asset managers, generating an estimated £105m in annual savings.

Further measures include simplifying the home-buying and selling process, which is expected to save businesses involved in property transactions £116m annually.

Smaller businesses will also benefit from standardised requirements when bidding for public contracts, particularly in sectors such as construction.

Other changes include reducing the number of Office for National Statistics business surveys, improving access to Government support and guidance, and introducing a mechanism for small businesses to report disproportionate regulatory requirements.

Import tariff suspensions extended

The Government has also confirmed an extension of import tariff suspensions covering more than 250 products used across sectors including automotive, chemicals, plastics, hydrogen and food and drink.

The suspensions, which were due to expire at the end of 2026, will now remain in place until December 2028, potentially reducing import costs by up to £155m annually.

The measures form part of the Government’s wider commitment to reduce the administrative burden of regulation on businesses by 25% by the end of Parliament.

According to Treasury estimates, achieving that target could save UK businesses employing staff approximately 280 million working hours each year.

“That is why we are cutting unnecessary bureaucracy and giving businesses the breathing space they need to invest, innovate and create good jobs.”

Business groups welcome reforms

The Institute of Chartered Accountants in England and Wales (ICAEW), which contributed to the Small Business Regulatory Taskforce, welcomed the announcement.

Iain Wright, ICAEW’s Chief Policy and Communications Officer, said the institute’s members had helped shape the recommendations, particularly around reducing duplicate reporting and simplifying public procurement.

“Our feedback has shaped this report, particularly on the ‘tell government once’ principle and measures relating to procurement, which came directly from feedback from members and which we know have been a burden for the businesses they advise,” he said.

“It’s heartening to see that the government has recognised the need to give businesses breathing space to invest, hire and grow. These measures will enable businesses to cut red tape and focus on the day-to-day, and we hope this will be the focus of next week’s budget.”

“The Regulatory Taskforce has been a good example of business and Government working in partnership to address a common problem. Currently, the weight of compliance can be a struggle, costing time, money, and stress that small businesses can ill afford. Today’s report is an important first step in addressing that. 

“The Taskforce’s report sets out clear, practical, and tailored recommendations to help lessen the burden of red tape on small businesses, enabling them to devote more resources to growth and job creation. Pausing the plans for full profit and loss accounts to be filed at Companies House by the smallest businesses is a huge step in the right direction, averting a huge new weight of red tape on the very businesses with the fewest

Meanwhile, CBI Chief Executive Rain Newton-Smith welcomed the reforms but stressed that their effectiveness would depend on implementation.

“The test now is delivery. Cutting unnecessary admin can free firms to invest, compete and grow – and business will want to see that ambition translated quickly into meaningful reductions in the burden they face.”

“Too many small business owners spend their Saturdays buried in paperwork, so anything that gives them that time back is welcome. But red tape isn’t the primary concern keeping SME owners awake at night. Costs are.

“Extending tariff suspensions helps at the edges. But it leaves the biggest bills untouched, and those bills are stifling growth and squeezing SMEs harder than ever.

“If this Government is serious about being pro-SME, next week’s Budget must cut corporation tax, reverse the employer National Insurance hike, and extend business rates relief beyond retail, hospitality, and leisure. We’ve heard loud and clear that this is what SMEs need.

“Today’s announcement is a great start. Next week, the Chancellor must give SMEs room to grow by cutting the cost of doing business.”

Supporting SME growth and investment

The announcement comes ahead of the Autumn Budget on 28 October, with the Government seeking to address business concerns about regulatory costs and barriers to growth.

For SMEs and the specialist finance sector, measures that reduce administrative costs could free up resources for investment, while simpler reporting requirements and improved access to public contracts may support business expansion.

The Government is expected to publish further details of the administrative savings measures on 28 October.