15
High UK VAT threshold acts as significant brake on small business expansion.
Conclusion
The UK’s high VAT threshold is acting as a significant brake on small business expansion. For service-based industries, like the hair and beauty sector, its impact is distortionary and disincentivises employment creation. (Conclusion, Paragraph 71)
Source
Committee
Business and Trade Committee
Inquiry
Small business strategy
Report
15th Report – Small business strategy
11 Feb 2026
HC 1057
Addressee Bodies
Department for Business and Trade
Timeline
Recommendation age
0.3 yrs
Report published
11 Feb 2026