The government has commissioned an independent review of the Loan Charge.

The Exchequer Secretary to the Treasury made a Written Ministerial Statement announcing that Ray McCann, a former President of the Chartered Institute of Taxation, would lead the review.

The review will examine the barriers preventing those who are subject to the Loan Charge but have not already settled and paid their tax liabilities in full from reaching resolution with HMRC. It will recommend ways in which they can be encouraged to settle with HMRC.

The reviewer will report and present their recommendations to the Exchequer Secretary to the Treasury by summer 2025.

However, the announcement drew criticism from campaigners.

Steve Packham, from the Loan Charge Action Group, said:

‘What the government has announced today is not a review at all, as it actually astonishingly excludes reviewing the Loan Charge. It is a complete sham and a betrayal of the promise made by Rachel Reeves last year.

‘The terms of reference start by justifying the Loan Charge and the whole approach taken and instead of being any review of the issue and scandal, is just about how people can be persuaded to give in and pay the unfair and disputed demands. This will not only not get to the truth, it will not resolve the matter and cases will unfortunately drag on and on.’

Internet link: GOV.UK Loan Charge Action Group

HMRC could save an estimated 1.7 million hours of call handlers’ time every year if it implemented an automated status tracking system, according to two of the leading bodies for tax advisers and chartered accountants.

A joint study by the Chartered Institute of Taxation (CIOT) and ICAEW tracked attempts to contact HMRC across phonelines and webchats for six weeks. It found that more than one-third of contact attempts were made to chase progress on existing enquiries, rather than to make a new enquiry.

The bodies say that, while improving customer service performance remained crucial, a significant reduction in the need for agents and taxpayers to contact HMRC in the first place was vital.

Only 33% of contact attempts to HMRC resulted in the query being fully resolved, the study found, with the average wait time across phone and webchat standing at 19 minutes.

The introduction of an automated tracking system to eliminate progress chasing calls could save more than 1.7 million hours each year, the equivalent of 1,000 full-time employees or approximately £36 million, CIOT and ICAEW said.

Additionally, an automated tracking system would reduce the number of staff needed to answer such calls, who could be redeployed elsewhere.

Ellen Milner, CIOT’s Director of Public Policy, said:

‘The report’s recommendations are practical solutions which can deliver significant improvements for agents and taxpayers.

‘Additionally, from an HMRC perspective, resolving issues with progress chasing alone has the potential to save them over £36 million a year in staff costs. This seems a good place to start for releasing funds for much needed investment in training and digitalisation.’

Internet link: CIOT

The UK government has launched a new Industrial Strategy Advisory Council which brings together business leaders from across the UK to offer advice.

The government says the Industrial Strategy will help maintain a pro-business environment to capture a greater share of internationally mobile investment and motivate domestic business to boost their investment and scale up their growth.

It will channel support to sectors and geographical clusters that have the highest growth potential for the next decade, the government adds.

Anna Leach, Chief Economist at the Institute of Directors said:

‘We welcome the launch of the Industrial Strategy Advisory Council which will offer independent advice and recommendations to government as it develops the Industrial Strategy.

‘It’s incredibly important to see the role of businesses in designing and delivering the government’s growth mission given prominence. An industrial strategy which embeds stability and long-termism alongside astutely targeted investments can play an effective role in driving this mission.

‘It is also good to see that the council will have a role in holding the government to account in the effective delivery of industrial strategy through data, analysis and reporting. We look forward to engaging with the new council in creating the conditions for businesses to thrive in the UK.’

Internet link: GOV.UK IoD

The Chancellor will deliver her Spring Statement to the House of Commons on Wednesday 26 March 2025.

Rachel Reeves confirmed the date to the House of Commons, telling MPs that the Office for Budget Responsibility (OBR) has been commissioned for an Economic and Fiscal Forecast to be published on the same day.

This is in line with the Budget Responsibility and National Audit Act 2011 which requires the OBR to produce two forecasts each financial year. This will be accompanied by a statement to parliament from the Chancellor.

A government statement said:

‘The Chancellor remains committed to one major fiscal event a year to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support the government’s growth mission.’

Internet link: GOV.UK

The UK economy shrank for the second month in a row in October, according to the Office for National Statistics (ONS).

Official figures showed a 0.1% drop in gross domestic product (GDP) for October. The economy had been expected to return to growth following a fall during September.

However, the ONS said that activity had stalled or declined, with pubs, restaurants and retail among the sectors reporting weak months.

David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:

‘With growth of just 0.1% in the three months to October and an unexpected fall in the monthly GDP, the UK economy was already fragile ahead of recent policy announcements.

‘The full impact of the Budget since then is yet to be seen. However, our research has already shown a spike in anxiety over tax and employment policy. Many businesses are telling us that increased costs are likely to have an impact on their investment and recruitment plans. Firms of all shapes and sizes are facing tough decisions in early 2025.

‘The Industrial Strategy due in the Spring has the potential to boost business growth for the long-term. Companies are also eager to see Government plans on business rates reform, trade and infrastructure.

‘Getting sustained economic growth will only be possible if the environment is right for businesses to invest, recruit and export.’

Internet link: ONS BCC