Budget’s ‘Fab Four’ wish list to boost businesses in Hertfordshire

Reduce VAT for hard-hit hospitality firms, cut tax on profits, give long notice for employment tax changes and slash the red tape.

That’s the ‘Fab Four’ Budget wish list for businesses in Hertfordshire by the UK head of tax at UK top 10 accountancy and business advisory firm Azets.

Praveen Gupta said: “The Chancellor has said that he wants to back British businesses, and this Budget is a golden opportunity to for him to do that. 

“He needs to set out a clear plan for cutting costs, slashing red tape and giving local businesses the foundation they need to go for growth and power the economy.”

He added: “The Budget should be judged on the wider ease of doing business.

“The Kent region has the entrepreneurship, creativity and resilience to build successful businesses – that’s evident. The government should examine what it can do to make it easier for companies to start, grow, and invest in the country.”

• Reduce VAT from 20% to 10% for hospitality firms, a move which would put the UK level with many European counterparts and make a holiday in Cornwall more competitively priced against a holiday in Copenhagen. 

• Cut the Corporation Tax rate from 25% to 17%, which would free up around £20bn for firms to invest and potentially £80,000 each for firms making a profit of £1m.

• Bring in a one-in, two-out rule for red tape so that any new complexity brought in for businesses comes with significant reductions in the regulation burden elsewhere.

• A clear two-year roadmap on employment tax, so that companies can plan and make provisions.

Praveen said: “Our ‘Fab Four’ wish list is grounded in feedback from many of the tens of thousands of businesses we work for, locally, regionally and nationally.

“They are looking to government for support from this Budget, and we hope that our policy asks are a resounding clarion call to Westminster at a time when many firms have the will and the skill to grow but are being held back by high costs and a tough trading climate.”

Azets has an office in Hertford.

According to latest annual business activity figures from the Office for National Statistics, as of March 2026, there were 2.79 million VAT and/or PAYE businesses in the UK, with 412,000 (14.8%) in the South East.

The wish list in detail:

VAT reduction to 10% for hospitality firms

At a time when many hospitality businesses are struggling, a VAT cut would help them keep prices competitive and provide funds for job creation and business growth.

The UK has one of the highest VAT rates for hospitality in Europe.

Nearly every major European tourism market has a lower VAT rate for accommodation and hospitality because they recognise tourism is an export industry and have a tax system that reflects that.

In contrast, the UK charges the full 20% rate on our hospitality sector, which is almost double that of many of the European countries we compete with in the market.

As a result, we lose out on both inbound and domestic tourism as potential customers turn to cheaper alternatives.

We believe the VAT rate should be reduced to 10% for hospitality firms.

Not only would this make us more competitive compared to other European countries, but it would provide a much-needed boost to businesses who have been hemmed in on both sides by rising employment and operating costs, and constrained consumer spending.

It would provide a relief to shrinking margins and encourage businesses to retain and recruit staff.

Corporation Tax rate decrease to 17%

We believe the Corporation Tax rate should be lowered to 17%.

While this would result in an initial reduction in the Treasury’s income, it would encourage businesses to expand, invest in equipment and technology and, perhaps most importantly, create jobs, as well as improving cashflow – a move which would reduce reliance on and the expenses associated with external financing.

It would also increase income to the Treasury through other taxes and would have the additional benefit of encouraging non-UK businesses to base themselves in the UK, creating more jobs and opportunities for UK supply chains, and further increasing tax revenues.

Employment tax roadmap

We would like to see the government set out a clear rolling employment tax roadmap which looks ahead for two tax years.

The last two Budgets have had a significant impact on businesses, and both have given them little time to get ready for any changes the new tax year brings.

In particular, the National Insurance Contributions and National Minimum Wage changes announced in Autumn 2024 left employers in a very uncertain and difficult position and gave businesses just four months to plan for and adapt to any changes that may be introduced in the new tax year.

The roadmap would enable business leaders to plan more effectively and budget more accurately, which would lead to them implementing any tax changes more effectively and accurately, and create more stability for businesses and the economy – in terms of growth, tax revenues and recruitment as they would know what they needed to prepare and plan for.

It would also signal the government’s commitment to a long-term economic strategy, increase confidence in tax policymaking and reduce speculation and the impact this has on market and business confidence ahead of major fiscal events.

Introduce a one-in, two-out rule for regulation

The cumulative burden of regulation is making it harder for SMEs to grow – SMEs have to navigate tax complexity alongside employment law, taxes and health and safety requirements.

For an owner-manager already focused on running the business, that cumulative administrative burden can be significant.

Regulation can consume resources that could otherwise go towards recruitment and investment.

Administrative complexity could be one reason successful small companies find it difficult to make the next hire, professionalise their management or grow into larger businesses.

Azets would like the government pledge to introduce a one-in, two-out rule for regulation, where any new piece of legislation or regulation that will impact on the administrative burden on SMEs is offset by removing two existing administrative requirements.

Such a move would go a long way towards the government’s objectives of the reducing the administrative burden on SMEs by a quarter and would reduce the administrative burden on small business owners – freeing up more time to focus on running and growing their businesses.