In this edition of eNews, we look at the Prime Minister’s plans to cut business rates for pubs, clubs and music venues, a new scale-up fund launched by UK pension providers, and HMRC’s warning not to ignore Simple Assessment letters. We also cover concerns that around 800,000 self-employed individuals could have gaps in their National Insurance record, calls from a leading business group to build trust in AI among small firms, and a three-point plan aimed at supporting growth under the new government.
- Prime Minister cuts business rates for pubs, clubs and music venues
- UK pension providers establish new scale-up fund
- Don’t ignore Simple Assessment letters, says HMRC
- 800,000 self-employed individuals could have gaps in their NI record
- Business group calls for government to build trust in AI among small firms
- Business group outlines three-point plan for new government
Prime Minister cuts business rates for pubs, clubs and music venues
Prime Minister Andy Burnham has slashed business rates for pubs, clubs and live music venues in England by 20%.
The reduction will take effect from April 2027 and will save the typical pub an estimated £1,100 next year, according to the government.
Designed to cut costs for working people and communities, the move will benefit nearly 32,000 pubs, clubs and live music venues, the government said.
The changes will be fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
Mr Burnham said: ‘For too long, governments have stood by while cherished venues have disappeared from our local high streets.
‘This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing . . . is just the start as we work to bring back hope across the country.’
Responding to the announcement, the Federation of Small Businesses (FSB) said: ‘We are encouraged at the signal from the Prime Minister . . . , instructing his government to plan for a significant increase in Small Business Rate Relief at the heart of the next Budget.’
Internet link: HMRC press release FSB press release
UK pension providers establish new scale-up fund
UK pension providers have joined forces to establish a new UK scale-up fund of more than £1 billion to back the next generation of high-growth science and technology companies.
The new fund aims to increase UK growth capital and give pension savers greater access to returns from successful UK companies.
It would seek to deliver strong long-term returns for pension providers and their members by investing in successful UK companies.
According to the government, the fund will support economic growth and help pension savers benefit from larger retirement pots.
Commenting on the fund, Prime Minister Andy Burnham said: ‘This new fund would help unlock good growth in every postcode, connecting pension investment with the entrepreneurs and technologies that will reindustrialise Britain and create the jobs of the future.
‘That means more opportunities for working people, stronger returns for savers, and more businesses choosing to start, grow and stay in Britain.’
Internet link: Government website
Don’t ignore Simple Assessment letters, says HMRC
HMRC has urged customers not to ignore Simple Assessment letters for the 2025/26 tax year.
HMRC issues around 1.8 million Simple Assessment letters and stated that people should check the figures in their letter against their own records.
The letters will be sent to those who have tax to pay on income that has not been taxed through Pay As You Earn (PAYE) or Self Assessment.
Individuals may receive a Simple Assessment letter if they owe tax that cannot be collected automatically by HMRC, for example, if:
· there is tax to pay on interest on savings or dividends
· a second income has not been taxed
· tax is due on pension income
· they received more tax-free allowance than they were entitled to
· the tax cannot be collected through a tax code (for example, larger amounts owed, typically £3,000 or more).
Any tax owed should be paid by 31 January 2027, unless a different date is shown.
Myrtle Lloyd, Chief Customer Officer at HMRC, said: ‘If you receive a Simple Assessment letter and have tax to pay, please don’t ignore it. It is quick and easy to pay any tax owed via the HMRC app.
‘If you need extra support or want to find out more, search ‘Simple Assessment’ on GOV.UK.’
Internet link:HMRC press release
800,000 self-employed individuals could have gaps in their NI record
HMRC will write to nearly 800,000 taxpayers who could have gaps in their National Insurance (NI) record.
The issue affects taxpayers who became self-employed between 2015 and March 2024.
According to HMRC, taxpayers who receive a letter or those who utilise its online pension forecast tool and identify gaps in their NI record ‘will be able to make contributions further than the usual six previous tax years and at the original rate’.
Gaps in NI records may also have arisen where Class 2 National Insurance contributions (NICs) were paid after the 31 January deadline or where payments were used first to clear outstanding tax liabilities rather than NICs.
The letters will be sent to 160,000 taxpayers aged above State Pension age or within two years of State Pension age. These will be sent by summer 2027.
HMRC is urging taxpayers to check their Self Assessment tax returns for previous years to confirm if Class 2 NICs have been made.
Internet link: ICAEW
Business group calls for government to build trust in AI among small firms
The Federation of Small Businesses (FSB) has called for the government to help build trust in artificial intelligence (AI) amongst small firms.
It stated that Kanishka Narayan, the government’s new AI Minister, has the ‘opportunity to help small businesses unlock productivity gains from greater AI adoption’.
In a new report, the business group found that 59% of all AI users have seen productivity gains and 24% have increased their revenue.
However, some 92% of small firms still harbour concerns about AI, the report showed. These worries include data security, copyright and liability.
‘It’s great to see the new government taking AI seriously and recognising how important it’s becoming to the economy,’ said Tina McKenzie, Policy Chair at the FSB.
‘The technology is moving at pace, but too many are asking basic questions about data, copyright and liability, and they deserve clear answers.
‘The new AI Minister has a real opportunity to make the UK the best place in the world for small firms to adopt AI, but that will only happen if he puts trust at the heart of the government’s approach.’
Internet link:Federation of Small Businesses
Business group outlines three-point plan for new government
The British Chambers of Commerce (BCC) has set out a three-point plan for the new government.
According to the BCC, Prime Minister Andy Burnham must focus on trade, investment and productivity to support businesses and help the UK economy thrive.
Ensuring that firms have the confidence to invest is essential if they are to expand, create more jobs and adopt new technologies, the BCC said. However, too many businesses face barriers that hold back long-term investment decisions.
The business group has urged the government to create the conditions that encourage investment.
It also called for a full commitment to a fully funded, multi-year workforce plan for the UK planning service to enable increased development, more jobs and stronger local economies.
The BCC called for an acceleration in infrastructure delivery and improved access to supply chains in order to maximise the economic returns from investment, and for the government to reduce unnecessary burdens that increase costs.
Internet link:British Chambers of Commerce
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