Select committee: Business, Innovation, Science and Trade Committee
Conclusion 15
15th Report – Small business strategy
Published 11 Feb 2026
Addressed to Department for Business and Trade
Business, Innovation, Science and Trade Committee Small business strategy All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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)
From: Business, Innovation, Science and Trade Committee, 15th Report – Small business strategy (HC 1057), 11 February 2026
Government response
No government response linked yet: deadline 11 April 2026, 204 days ago.