Businesses in the UK are set to save almost £800 million a year. That is the government’s estimate. Chancellor John Healey announced a package on 23 October 2026: less paperwork for business and a longer suspension of tariffs on some imported goods. The package is backed by Prime Minister Andy Burnham and Business Secretary Jonathan Reynolds.
Tariffs. More than 250 goods will continue to enter the UK tariff-free. These exemptions were due to expire on 31 December and now apply until December 2028. Other tariff suspensions ending in June 2027 have been extended by six months, to December 2027. They cover, among others, chemicals, plastics, hydrogen, the automotive sector, and food and drink. The government estimates savings of up to £155m a year. A consultation will run from 11 November to 3 February: businesses can apply for further exemptions and propose new ones.
Red tape. Simpler administrative obligations are expected to save more than £600m a year. The biggest saving, up to £290m, is to come from simpler company reporting. Businesses involved in buying and selling homes will gain £116m. The government also promises simpler public procurement for small firms, including in construction, simpler ONS surveys and clear guidance for small businesses. The aim is to cut administrative costs by 25% by the end of this Parliament.
The government is to publish details of the individual changes on GOV.UK on 28 October 2026. The Chancellor will present the Budget the same week.
Related: Small companies need not publish profit and loss – changes at Companies House.
What it means for you
If your business imports raw materials, car parts, plastic packaging or food into the UK, check whether your goods are on the list of suspended tariffs. Lower import costs for the next two years make pricing easier to plan. Polish construction and service firms may benefit from simpler public tenders.
Our assessment
The tariff extension is concrete and will take effect. The red-tape savings are, for now, government estimates. We will only see their effect after the details are published and the Budget is delivered. For a small business, simple forms and faster public offices matter more than headline figures – that is what is worth checking in practice.
What to do
- Check the commodity codes of your goods in the UK Trade Tariff.
- Note 11 November in your diary – the start of the consultation on tariff exemptions after 2027.
- Watch for 28 October, when the government will publish details of the changes and announce the Budget.
Source: HM Treasury, GOV.UK – Government slashes red tape and tariffs to give businesses breathing space (23.10.2026).
We assess factual corrections and substantive responses. Verified changes are reflected in our reporting.
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