Last week our wonderful government announced plans to scrap consultations for most changes to UK tax policy and the associated law. I’m surprised that the media didn’t pick up on this, bearing in mind the potential risks it could create for public trust.
The announcement was made on one of the daily press releases (most of which tend not to be read by the press!), under the heading of simplification and efficiency, with HMG stating that it has decided to abolish the consultation process for changes to UK law and policy, including all taxes and accounting regulations.
Planned changes
The press release asserts that consultation culture has turned policymaking into an “industry of dither and delay”. The solution, according to our ‘newish’, Labour government, is to remove their duty to consult on policy and allow ministers to reach decisions themselves, then act swiftly to implement them.
Most accountants and business leaders would argue that the vast bulk of dithering and delay is invariably down to ministers and their minions and is not due to the consultation process. I did however espy a small chink of light, that thy have not completely abandoned all consultation, when they said that they will allow some, but only if one of the following conditions applies:
- There is a statutory requirement to consult
- It would be conspicuously unfair not to consult
- Ministers believe that there is a good case for seeking external input and that the right way to do this is a formal consultation.
My first thought on reading HMG’s plans was that it appears to give government ministers absolute power to plough on regardless with their pet projects, without listening to any cautious voices or external expert opinions from either accountancy, business or indeed the general public.
What is the current situation
For many years, tax policy changes have always been introduced after several stages of consultation, which has invariably produced much better tax law. The process was written into statute in 2011 and titled the Tax Consultation Framework, which had five stages, which were:
- Set out the objectives and identify options.
- Determine the best option and develop a framework for implementation.
- Draft legislation to effect the proposed change.
- Implement and monitor change.
- Review and evaluate change.
Most tax consultations have been launched to the public at stage two or three, once the decision in principle to make the change had been made by ministers. For example, the consultation on electric vehicle excise duty in November 2025 was all about the design of the tax, not whether the use of electric vehicles should be taxed.
Regrettably, the Tax Consultation Framework was quietly withdrawn a year ago in September 2025, with no announcement and no explanation as to why.
When will it happen
HMG have refused to give a timetable for when the change in approach to consultations will be fully implemented. However, the recent press release also states that all government departments have been instructed to introduce the necessary clauses to repeal all statutory requirements to consult into planned legislation, or in draft legislation which is already in progress through Parliament.
This removal of automatic consultation is to be rolled out to the entire public sector, including to local government, and government agencies such as the DVLA. It goes without saying that there will not be any consultation on the process of removing the requirement to consult.
Does consultation make a difference
We are at a point of enormous upheaval in tax, as digitalisation is driving changes in tax reporting as well as tweaks to the underlying rules of tax assessment. To make those changes run smoothly, we need collaboration and trust between HMRC and the tax profession, as well as with ordinary taxpayers. If formal consultation is removed from the policy process, how can that trust and collaboration be achieved?
It’s possible that informal consultations made directly between HMRC and some groups, such as business organisations and accountancy bodies, will fill some of the gap. However, I worry that this will leave out important voices from the debate, especially from smaller businesses, charities and individual taxpayers. The consultation process is more than just an exchange of ideas; it demonstrates transparency of government.
Can anything else be done
I would strongly urge Mr Burnham, his Chancellor John Healey and the rest of our current government to please think again. They should not adopt the Mark Zuckerberg approach to getting things done, which can be summed up by his famous motto of ‘move fast and break things’.
Yes, laws need to change, but to quote the motto of the guild of master carpenters, “measure twice, cut once”. Consultation is the second measurement, which is necessary to prevent expensive mistakes.
Without consultation, the public and businesses will feel that the policy changes are being forced upon them. This will foster suspicion and resentment rather than trust and cooperation and will inevitably result in some bad tax law.
Accountant’s view
When Andy Burnham took over the reins of power a few weeks ago he promised that his government would be honest with the general public and said that he would be encouraging greater government transparency. I regret to say that my initial optimism with and trust in, our new leader, has been dashed by his government’s recent decision to exclude pretty much everyone from outside government from the decision making process, especially on tax.
Government to ditch tax consultations
Last week our wonderful government announced plans to scrap consultations for most changes to UK tax policy and the associated law. I’m surprised that the media didn’t pick up on this, bearing in mind the potential risks it could create for public trust.
The announcement was made on one of the daily press releases (most of which tend not to be read by the press!), under the heading of simplification and efficiency, with HMG stating that it has decided to abolish the consultation process for changes to UK law and policy, including all taxes and accounting regulations.
Planned changes
The press release asserts that consultation culture has turned policymaking into an “industry of dither and delay”. The solution, according to our ‘newish’, Labour government, is to remove their duty to consult on policy and allow ministers to reach decisions themselves, then act swiftly to implement them.
Most accountants and business leaders would argue that the vast bulk of dithering and delay is invariably down to ministers and their minions and is not due to the consultation process. I did however espy a small chink of light, that thy have not completely abandoned all consultation, when they said that they will allow some, but only if one of the following conditions applies:
My first thought on reading HMG’s plans was that it appears to give government ministers absolute power to plough on regardless with their pet projects, without listening to any cautious voices or external expert opinions from either accountancy, business or indeed the general public.
What is the current situation
For many years, tax policy changes have always been introduced after several stages of consultation, which has invariably produced much better tax law. The process was written into statute in 2011 and titled the Tax Consultation Framework, which had five stages, which were:
Most tax consultations have been launched to the public at stage two or three, once the decision in principle to make the change had been made by ministers. For example, the consultation on electric vehicle excise duty in November 2025 was all about the design of the tax, not whether the use of electric vehicles should be taxed.
Regrettably, the Tax Consultation Framework was quietly withdrawn a year ago in September 2025, with no announcement and no explanation as to why.
When will it happen
HMG have refused to give a timetable for when the change in approach to consultations will be fully implemented. However, the recent press release also states that all government departments have been instructed to introduce the necessary clauses to repeal all statutory requirements to consult into planned legislation, or in draft legislation which is already in progress through Parliament.
This removal of automatic consultation is to be rolled out to the entire public sector, including to local government, and government agencies such as the DVLA. It goes without saying that there will not be any consultation on the process of removing the requirement to consult.
Does consultation make a difference
We are at a point of enormous upheaval in tax, as digitalisation is driving changes in tax reporting as well as tweaks to the underlying rules of tax assessment. To make those changes run smoothly, we need collaboration and trust between HMRC and the tax profession, as well as with ordinary taxpayers. If formal consultation is removed from the policy process, how can that trust and collaboration be achieved?
It’s possible that informal consultations made directly between HMRC and some groups, such as business organisations and accountancy bodies, will fill some of the gap. However, I worry that this will leave out important voices from the debate, especially from smaller businesses, charities and individual taxpayers. The consultation process is more than just an exchange of ideas; it demonstrates transparency of government.
Can anything else be done
I would strongly urge Mr Burnham, his Chancellor John Healey and the rest of our current government to please think again. They should not adopt the Mark Zuckerberg approach to getting things done, which can be summed up by his famous motto of ‘move fast and break things’.
Yes, laws need to change, but to quote the motto of the guild of master carpenters, “measure twice, cut once”. Consultation is the second measurement, which is necessary to prevent expensive mistakes.
Without consultation, the public and businesses will feel that the policy changes are being forced upon them. This will foster suspicion and resentment rather than trust and cooperation and will inevitably result in some bad tax law.
Accountant’s view
When Andy Burnham took over the reins of power a few weeks ago he promised that his government would be honest with the general public and said that he would be encouraging greater government transparency. I regret to say that my initial optimism with and trust in, our new leader, has been dashed by his government’s recent decision to exclude pretty much everyone from outside government from the decision making process, especially on tax.
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