Joint letter to Rachel Reeves: encourage growth, don't stunt it

Dear Chancellor,

Re: Encourage growth, don’t stunt it.

We write as leaders from across the UK’s professional services sector to express deep concern and warn against reported proposals to apply employer National Insurance or an equivalent charge to limited liability partnerships (LLPs).

Such a move would strike at the heart of a sector that is not only growing but actively partnering with government to deliver economic growth.

Our professional services sector sits among the UK’s global success stories – driving investment, creating jobs, and reinforcing the UK’s reputation as an attractive place to do business.

Introducing higher taxes on LLPs now would be a misstep and will stunt growth. It would undermine the government’s stated ambition to support professional services as a growth partner and send a damaging signal to international investors.

At a time when firms are already facing potential major regulatory changes – from anti-money laundering compliance to evolving tax adviser rules – this additional burden risks creating a perfect storm that stifles investment, hiring, and innovation.

The consequences would be real and immediate.

Firms would be forced to reconsider their structures, triggering instability and uncertainty across our economy. Meanwhile, our global competitors – many of whom are actively courting professional services firms – would seize the opportunity to attract talent and capital away from the UK.

We urge you to reconsider, and to convene relevant professional bodies to hear how you can back the sectors that are delivering growth instead of penalising them.

We stand ready to work with the government to ensure the UK is the most attractive place in the world to do business.

Signed,

Mark Evans
President, The Law Society of England and Wales

Alan Vallance
CEO, ICAEW

Chris Hayward
Policy Chairman, The City of London Corporation

Miles Celic OBE
Chief Executive, TheCityUK

Colin Passmore
Chair, City of London Law Society

Michael Moore
Chief Executive, British Private Equity and Venture Capital Association