In this week’s Enews, there is a warning on the impact that business rates increases will have on high street businesses. We also look at a report on the government’s growth strategy and an increase in self assessment payments using an app to update you on.
Tax timebomb poses existential threat to high streets, government warned
Small businesses such as cafes, shops and hairdressers are facing three years of business rates misery with an average 52% hike in bills, analysis from the Federation of Small Businesses (FSB) has revealed.
This is due to the removal of business rates relief for 230,000 small firms across the retail, hospitality and leisure (RHL) sectors in England.
The removal of the relief combined with other business rates changes being introduced by the government from this April, leaves many having to pay thousands of pounds extra, says the FSB.
In a letter to the Government, FSB has urged ministers to deploy the full relief available to them for small firms in RHL. Currently, only a quarter of the potential relief included in the government’s own formula is being used.
FSB Policy Chair Tina McKenzie said:
‘Striving small businesses in retail, hospitality and leisure – from bakeries and coffee shops to garden centres, gyms and dry cleaners – are on the brink unless Chancellor makes a decisive intervention now.
‘The tax timebomb that’s currently ticking will see three years of soaring bills, threatening our high streets and the jobs and services they provide.
‘Combined with other cost pressures going up in April as well, the Chancellor has to be realistic that without action on business rates relief, the burden will become too much to bear for some, who will either shrink or close down altogether.’
Internet link: FSB website
Government must ramp up its growth strategy, says think tank
Despite falling behind its peers the UK economy could be on the brink of a turnaround so the government must up rather than run-down its growth strategy, says the Resolution Foundation.
A report by the think tank warns that the UK’s poor post-financial crisis economic performance has continued well into the 2020s. Its GDP per head is now languishing 15% behind its former peers, including France, Germany and Canada.
There are signs that the UK economy may be turning a corner however, with productivity growing by 3.4% over the past 18 months.
The report says the government’s three-pronged strategy of restoring stability, increasing investment and reforming the economy is the right one for the challenges Britain faces.
Greg Thwaites, Research Director at the Resolution Foundation, said:
‘There’s lots to welcome in the government’s economic growth strategy. But it has spent much of the past 18 months undermining that strategy with policy U-turns, kite-flying tax ideas and timidity in areas like trade where it needs to be bold.
‘With signs that productivity may be turning a corner, the government must capitalise by ramping up its plans. It should redouble efforts to unblock housebuilding in major cities, focus job support for young and older workers, and decide whether to bite the bullet and reverse some of the damage from Brexit.’
Internet link: Resolution Foundation website
Self assessment payments via the HMRC app up 65%
The number of people using the HMRC app to pay their self assessment tax bill has increased by 65% this tax year, according to the tax authority.
Almost 340,000 people have used the HMRC app to pay their self assessment tax since 6 April 2025, an increase of 132,788 people compared to the same period last year, says HMRC.
Self assessment taxpayers need to file their tax return online for the 2024/25 tax year and pay any tax owed by 31 January 2026. HMRC is encouraging those yet to start theirs, to go to GOV.UK and do it now. Anyone who misses the deadline could be subject to an automatic £100 penalty.
HMRC says that filing tax returns ahead of the deadline means knowing how much tax to pay sooner.
The tax authority says it is quick and easy to pay via the HMRC app and set up payment reminders to make sure the deadline is not missed.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said:
‘The self assessment deadline is less than one month away, and thousands of people have already paid their tax bill via the HMRC app. It is quick and easy to do, and you can also see your payment history. Search ‘download the HMRC app’ on GOV.UK to access the app and make your self assessment payment.’
Internet link: HMRC press release
