Britain’s bloated tax system has become so complex it is now dragging on economic growth, leading tax experts have warned.
Audit and business advisory firm Blick Rothenberg has accused the Government of allowing tax simplification to fall down the agenda as the UK’s tax code expands to around 17,000 pages.
Sean Drury, Head of Tax at the firm, said the sheer volume of new legislation was creating an increasingly difficult environment for businesses, investors and individuals.
He said the latest Legislation Day produced 26 separate policy and draft legislation announcements, alongside new consultations and responses to previous reviews.#
“Simplification seems to be on the backburner,” Mr Drury said, warning that complexity was making compliance and financial administration harder and ultimately damaging economic growth.
The warning comes as companies continue to face rising costs and uncertainty, with advisers struggling to keep pace with constant changes. Mr Drury said the number of announcements had surged compared with previous years, creating a growing workload for taxpayers, HMRC agents and professional advisers.
Among the measures being introduced are changes affecting international taxation, VAT rules and reforms linked to National Insurance contributions. While some changes are technical, others could have a much wider impact on businesses operating in the UK.
Blick Rothenberg said reforms should focus on making the tax system easier to understand and administer. Mr Drury highlighted plans to align National Insurance contribution time limits with income tax as an example of potential simplification. However, he warned the move also reflected a wider shift in the role of National Insurance, which increasingly functions as another form of taxation.
The firm said it would review the new legislation to assess whether it delivers genuine simplification.
The warning comes as politicians across Westminster focus on boosting economic growth and making Britain more attractive to investment. But business groups argue that a complicated tax regime increases costs, discourages entrepreneurship and makes the UK less competitive internationally.
With the tax code continuing to expand, experts say the Government faces a simple choice: cut through the red tape — or risk allowing Britain’s tax system to become a barrier to growth.
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