The quiet rise in the tax burden for UK businesses will hit workers and consumers too

By Jagannadha Pawan Tamvada, Professor of Entrepreneurship, Kingston University

Many businesses in the UK saw the 2025 budget as a tightening of the screw in a period of already difficult conditions. While the government insists it is not raising taxes on companies overall, disquiet among businesses could have an impact on jobs, wages and the wider economy.

It’s true that corporation tax (paid by businesses on their profits) will stay at 25%. But other moves are coming. From April 2026, changes to tax allowances that companies can claim on plant and machinery are expected to increase the tax take by more…

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