Government Promises £800m a Year in Red Tape and Tariff Savings for Businesses
The government says businesses will save almost £800 million a year from simpler reporting and extended import tariff suspensions, and will pause the Companies House profit and loss filing requirement until April 2028.
By Entrepreneur Group · Published · Updated
The government says businesses will save almost £800 million a year from a package of cuts to paperwork and import tariffs announced on 23 October 2026. It combines over £600 million of savings from simpler regulation with up to £155 million from extending tariff suspensions on more than 250 imported products. One change of direct interest to small companies: the Companies House requirement to file a profit and loss account is paused until April 2028.
The Treasury announcement, made by Chancellor John Healey, the Prime Minister and Business Secretary Jonathan Reynolds, comes the week before the Autumn Budget on 28 October. The government's response to its Small Business Regulatory Taskforce, co-chaired by small business minister Lord Leong and Federation of Small Businesses chair Tina McKenzie, accepts all but one of the taskforce's 15 recommendations.
What is in the package
The government itemises three of the regulatory savings:
- Simpler company reporting: up to £290 million a year, including savings of up to £20,000 a year for businesses that are part of a wider national group.
- Less duplicated reporting for asset managers: £105 million a year.
- Simpler home buying and selling: £116 million a year for businesses in the transaction chain.
Those three add up to £511 million, so the rest of the "over £600 million" is not broken down in the announcement. The government says full details of each measure will be published on GOV.UK on 28 October.
The measures aimed at small businesses include:
- Clearer, simpler compliance guidance written with small firms in mind.
- Standard requirements for public contracts in sectors such as construction, to make bidding simpler.
- Fewer and simpler ONS business surveys.
- Easier access to support on GOV.UK, and a way for small businesses to report regulations they think are disproportionate.
- A "Tell Us Once" approach, including the pause on Companies House profit and loss filing until April 2028.
Tariff suspensions
Tariff suspensions on more than 250 products, which were due to expire on 31 December 2026, will now run until December 2028. Suspensions due to end in June 2027 are extended by six months to December 2027. A consultation on extending suspensions beyond 2027 and proposing new ones runs from 11 November 2026 to 3 February 2027.
The bigger target
The government says it aims to cut the administrative cost of regulation for businesses by 25% by the end of this Parliament, which it estimates would save 280 million hours of employees' time a year. It reported £2 billion of net progress against that target in July.
In the announcement, Business Secretary Jonathan Reynolds said: "A baker should be filling pasties, not forms."
What founders should do
This section is editorial guidance.
- Check your filing plans. If you run a small company, look for Companies House guidance on the profit and loss pause before preparing your next accounts. Do not stop filing anything until the rules are confirmed.
- Importers. If you import components or materials, check whether your products are on the list of extended tariff suspensions. That can affect pricing for the next two years. The consultation from 11 November is your chance to propose new suspensions.
- Public sector bidders. Standard contract requirements could make tendering easier. Watch for guidance in your sector.
- Tell government what hurts. The new route to report disproportionate regulations is worth using. Specific examples with costs are more likely to lead to change.
Frequently asked questions
How much will the government's red tape cuts save businesses?
The government says businesses will save almost £800 million a year: over £600 million from regulatory changes and up to £155 million from extended import tariff suspensions.
Do small companies still have to file a profit and loss account at Companies House?
The government says it is pausing the Companies House profit and loss filing requirement until April 2028, as part of its "Tell Us Once" approach. Check Companies House guidance for how this applies to your accounts.
Which import tariff suspensions have been extended?
Suspensions on more than 250 products that were due to expire on 31 December 2026 now run until December 2028, and those due to end in June 2027 are extended to December 2027.
Sources
- GOV.UK: Government slashes red tape and tariffs to give businesses breathing space (23 October 2026) (reviewed 27 October 2026)
- GOV.UK: Government response to the Small Business Regulatory Taskforce report (reviewed 27 October 2026)