Reform unveils plan to 'save' British businesses by slashing red tape and axing 'ridiculous EU laws'

Thank you for subscribing!

Robert Jenrick said the move would immediately benefit 320,000 small businesses at an annual cost of £2.4billion

Reform UK has pledged to scrap UK privacy rules to slash “red tape” for businesses and axe "ridiculous EU laws".

Treasury spokesman for the party, Robert Jenrick, said the General Data Protection Regulation (GDPR) - which mirrors EU legislation and was adopted as domestic law after Brexit - had “strangled” tech firms and small enterprises.

Under new proposals, the framework would be replaced by rules modelled on New Zealand’s privacy legislation, which is seen as more lenient, the party said.

Mr Jenrick outlined the pro-business pitch this morning, including a pledge to widen a tax-relief scheme for investors in small businesses in the UK to allow relatives to claim advantages more easily.

He said the GDPR had “strangled small businesses and tech firms alike in a web of unnecessary regulation”.

“Ten years after the Brexit referendum, we should not still be following ridiculous EU privacy laws that hurt British businesses", he added.

It would change the Seed Enterprise Investment Scheme to ensure parents and grandparents can put up to £250,000 into their child or grandchild’s small business, and receive an income tax rebate of 50 per cent and exemption from capital gains tax if they hold the investment for three years.

The party has also announced promises to reverse the rise in employer national insurance contributions and changes to inheritance tax on farms, while introducing a “hard work bonus” that scraps income tax on overtime.

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.

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."

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.

LATEST FROM REFORM UK:

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.

The party also announced plans to introduce a tax credit for Britons who are left waiting on the phone to HM Revenue and Customs (HMRC) for more than 30 minutes.

Earlier this morning, the party's Treasury spokesperson Robert Jenrick confirmed those affected will receive a £30 tax credit at the end of the tax year if Reform wins power.

To ensure the tax authority meets its targets, Reform will link the pay of senior HMRC officials to their customer service performance.

Notably, if senior officials fail to make progress on waiting times, they will be fired.

According to the Federation of Small Business, the average small business owner spends 44 hours and £4,500 a year on complying with tax laws, which is a 10 per cent rise from 2021.

Notably, British taxpayers were found have been left waiting 23 minutes on average in 2023/4, which is a five-minute jump from 2018/19.