Key takeaways
- The target is to cut the administrative burden of regulation on business by 25% by the end of this Parliament, worth £5.6 billion a year and 280 million working hours.
- The government reports over £2 billion of net progress. Budget 2026 adds up to £640 million a year of new gross savings.
- The biggest item is up to £290 million a year from a more proportionate company reporting framework.
- The Small Business Regulatory Taskforce made 15 recommendations. The response pauses the Companies House profit and loss filing requirement and considers a 'tell government once' service.
- A new Better Regulation Executive will drive delivery.
The government has promised to cut the administrative burden of regulation on business by 25% by the end of this Parliament. Budget 2026 reports progress against that target and adds new savings. The numbers are large, but most of the headline savings come from specific reforms, such as company reporting and house buying. This post separates what is measured from what is promised, and shows what it means for accountants.
The target and the progress
The Budget document says achieving the target will save £5.6 billion a year in administrative costs and free up 280 million working hours. The government says it is on track, with over £2 billion of net progress secured. The July 2026 update reported £2.0 billion of net annual administrative savings delivered or identified.
At Budget 2026 the government identified up to an estimated £640 million a year of new gross administrative savings:
| Source of saving | Estimated saving a year |
|---|---|
| A more proportionate company reporting framework | Up to £290 million |
| MHCLG’s Home Buying and Selling Roadmap | £116 million |
| FCA work on a single reporting framework for fund managers | £105 million |
The Treasury’s supplementary document explains the data sources and methods behind these estimates, on the same like-for-like basis as the July 2026 technical annex. These are gross savings, so they are not the same thing as the net figure used for the target.
A new Better Regulation Executive
The government is creating a Better Regulation Executive. It will be a joint unit between HM Treasury and the Office of the Prime Minister and Cabinet. It will set the direction for, and drive delivery of, what the Budget calls a streamlined and proportionate regulatory system. A Ministerial Oversight Group will oversee it, and a Chair will be appointed shortly.
The Budget also announces a Regulation for Growth Bill. It will create cross-economy powers so businesses can test and scale new products and approaches more quickly while protecting consumers.
What the small business taskforce recommended
The Small Business Regulatory Taskforce ran from June to September 2026. Its report, published on 23 October 2026, makes 15 recommendations across five areas. The government’s response welcomes them and sets out action on specific burdens. The headline measures include:
- considering a “tell government once” service
- pausing the Companies House profit and loss filing requirement while it looks at streamlining filing with HMRC
- reducing duplication in Office for National Statistics surveys
- standardising construction procurement and the reuse of supplier information
- improving GOV.UK guidance and creating a clearer route through Business.gov.uk to report burdensome regulation
- developing reusable business credentials and moving remaining business surveys online
- reviewing the Non-Domestic Rating Information Duty
The response says early work with Bristol City Council on Temporary Event Notices shows redesigned digital processes can reduce burdens by up to 50%.
Where accountants see the change
Company reporting. The pause on profit and loss filing removes a new burden for small companies. Companies House confirms they can keep filing abridged accounts and filleting out the profit and loss account after 1 April 2028. Software filing in iXBRL still becomes mandatory from April 2028. See Companies House pauses P&L filing.
Business rates. The duty to notify is being reviewed, and the timeline has moved to a phased launch between April 2029 and April 2032. See business rates duty to notify.
E-invoicing and late payment. The government links e-invoicing to its late payment reforms. See our posts on the e-invoicing roadmap and the Commercial Payments Bill.
Corporation Tax. A separate consultation on simplification is open. See Corporate tax simplification.
How to read the figures
- Gross and net differ. The Budget savings are gross. Progress against the target is reported as net savings.
- Estimates carry assumptions. The supplementary document explains the methodology rather than guaranteeing the outcome.
- Delivery sits with different departments. MHCLG, the FCA and Companies House deliver parts of the total.
- Some savings depend on later steps. The Regulation for Growth Bill is still to be introduced.
What advisers should do
- Tell small company clients about the P&L pause. It changes what they should expect from April 2028.
- Plan for software filing. The change to commercial software filing of accounts is still going ahead.
- Watch for the “tell government once” proposals. Streamlined HMRC and Companies House filing could change practice workflows.
- Treat the savings as estimates. Do not quote the £640 million as certain.
Frequently asked questions
What is the 25% administrative burden target?
It is the government’s commitment to cut the annual administrative cost of regulation for business by 25% by the end of this Parliament, equivalent to £5.6 billion a year.
How much has been achieved so far?
The government says over £2 billion of net progress is secured. Budget 2026 identifies up to £640 million a year of additional gross savings.
What happens to Companies House profit and loss filing?
The requirement for small companies and micro-entities to file profit and loss accounts is paused while options for streamlining filing with HMRC are examined.
What is the Better Regulation Executive?
It is a new joint unit of HM Treasury and the Office of the Prime Minister and Cabinet that will set the direction for and drive the government’s regulatory reform.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 1 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.