UK finance minister eyes tax reform to help small business expansion

11/9/2025 16:43

Britain's finance minister Rachel Reeves said on Thursday she would look at reforming business property taxes to make it easier for smaller firms to expand, as she seeks to step up efforts to boost growth.



As her annual budget on November 26 approaches, speculation about tax increases and worries over inflation are already weighing confidence among some businesses and households.



Many economists think Reeves will need to find tens of billions of pounds more in revenue due to higher borrowing costs, a less certain growth outlook and a failure to pass welfare cuts through parliament.



"Our economy isn't broken, but it does feel stuck," Reeves said alongside a finance ministry report into business property taxation, known as rates.



The report proposed smoothing out big jumps in property taxes faced by small businesses when they expand.



"Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth," she said in a statement.