Thank you for subscribing!

Robert Jenrick will announce Reform's plan to help small businesses, which includes tackling EU-era regulation

Reform is set to unveil what the party describes as the most significant package of measures in a decade aimed at rescuing Britain's struggling small businesses.

The sweeping plan encompasses a raft of tax cuts and deregulation proposals, headlined by the abolition of GDPR in favour of lighter privacy rules based on New Zealand's framework, an increase to the VAT registration threshold, and the reversal of Labour's National Insurance hike.

Additional measures include eliminating income tax on overtime hours, broadening the Seed Enterprise Investment Scheme to permit family members to back small firms, and establishing a £2,000 bonus for apprentices who remain with their employers.

The announcement arrives amid grim figures indicating that fewer than one in five of Britain's small businesses anticipate growth over the coming year, while more than a third expect to contract or shut down entirely.

Notably, Reform intends to replace the EU-era data protection framework with a system modelled on New Zealand's regime, which it identifies as the lightest-touch approach that the EU still deems "adequate".

Research cited by the party suggests that GDPR has reduced investment in technology companies by a quarter relative to their US counterparts.

The regulation also reportedly led to a halving of new applications being listed on the Google Play Store, including those originating from British developers.

According to the party, even routine activities such as compiling email lists of potential business contacts can trigger legal obligations under current rules, placing a disproportionate burden on smaller firms.

Mr Jenrick said: "GDPR has strangled small businesses and tech firms alike in a web of unnecessary regulation. 10 years after the Brexit referendum we should not still be following ridiculous EU privacy laws that hurt British businesses."

On taxation, the party's centrepiece proposal would lift the VAT registration threshold from £90,000 to £150,000, a change Reform UK says would immediately benefit 320,000 small businesses at an annual cost of £2.4billion.

The party has also pledged to undo Rachel Reeves's National Insurance rise for British workers, funding the reversal through a levy imposed on migrant workers.

Reform UK says it is the only party committed to scrapping this increase. A policy branded the "Hard Work Bonus" would remove income tax on overtime for employees earning below £75,000.

Hours worked beyond a 40-hour week would be entirely free of income tax under the proposal, which the party says would encourage additional shifts and deliver a productivity boost.

The targeted tax reductions are designed to support small business owners, according to the party. Reform would also expand the Seed Enterprise Investment Scheme to allow parents and grandparents to back their children's or grandchildren's ventures.

Currently, close relatives are excluded from the scheme's tax advantages. Under the proposed changes, family members could invest up to £250,000 in a relative's small business and receive a 50 per cent income tax rebate, along with exemption from capital gains tax provided the investment is held for at least three years.

Elsewhere, the plan introduces a £2,000 Apprentice Retention Bonus for those who complete their training and stay with their employer for two years, alongside subsidised wages for younger apprentices.

Reform leader Nigel Farage said: "Small businesses are the beating heart of our economy, yet they have been suffocated by years of punishing taxes, suffocating EU red tape and a big-state obsession that rewards dependency over hard work."

He added: "While the establishment parties drive small firms to the brink of closure, Reform UK is offering a bold, common-sense rescue plan."