Professional Services Chiefs Warn Chancellor Against LLP National Insurance Tax
A coalition of Britain’s professional services leaders has signed a letter to Chancellor Rachel Reeves warning that a proposed Budget move to impose employers' national insurance on limited liability partnerships (LLPs) would harm the economy.
The letter argues that implementing such a tax on LLPs would stunt growth, undermine the government’s ambitions for the professional services sector, and reduce the UK's attractiveness to international investors.
Signatories, including the City of London Law Society and the City of London Corporation, warn that higher LLP taxes could force firms to reconsider their corporate structures, creating instability and driving talent and capital to global competitors.
This correspondence was sent to the chancellor less than two weeks before the Budget amid broader concerns regarding the £30bn fiscal gap. The Treasury has not commented on the potential LLP tax changes.
A Financial Times report cited in the article suggested the LLP tax plan could be less severe than initially feared.
The letter emphasizes the professional services sector’s pivotal role as a global growth driver, investment creator, and job generator, urging policymakers not to undermine that status by deterring growth through tax changes.
