Small businesses are a key focus for Reform UK. The party argues that excessive taxation, red tape, and employment costs — particularly following Labour's employer NI rise — are squeezing small businesses out of existence.
The NI Bombshell
The Labour government's October 2024 Budget raised employer National Insurance by 1.2 percentage points and lowered the threshold at which it applies from £9,100 to £5,000 per employee. For a small business employing 10 people at average wages, this means an additional £5,000+ per year in employment costs.
Reform UK's Business Pledges
- Abolish business rates for firms with rateable values under £51,000
- Cut corporation tax to 20% for all businesses
- Raise the VAT threshold from £85,000 to £150,000
- Cut employer NI to reduce the cost of employment
- Introduce a regulatory bonfire — reduce business red tape by 20%
Frequently Asked Questions
Reform UK wants to abolish business rates for high street businesses with rateable values under £51,000, cut corporation tax to 20%, raise the VAT threshold to £150,000, and reduce red tape and regulation that small businesses face.
Reform UK would abolish business rates for all businesses with a rateable value under £51,000 — which covers the vast majority of small high street businesses. They would replace this with a land value tax on commercial property owners.
The Labour government's October 2024 Budget raised employer National Insurance contributions from 13.8% to 15% and lowered the threshold at which they apply. This significantly increased the cost of employing staff for small businesses.
Reform UK strongly opposes the employer NI increase introduced by Labour. They want to reduce employer NI to lower the cost of employment and encourage businesses to hire more staff.
Yes. Abolishing business rates for smaller retailers and hospitality businesses is specifically designed to help struggling high streets. Reform UK argues excessive rates are one of the main causes of high street decline.
Other Reform UK Policy Areas
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