How is the £25 billion tax burden affecting UK small businesses in a stagnating economy?

The £25 billion tax burden is severely impacting UK small businesses amid economic stagnation, with GDP growth nearly flat at just 0.1% in the final quarter of 2025. Small businesses already spend an estimated £25 billion annually on tax compliance alone, creating a double financial pressure on these enterprises. These tax burdens are exacerbating the economic situation as the private sector struggles while government spending and borrowing continue to drive minimal growth. Experts suggest that reducing this tax compliance burden could significantly improve productivity, allowing small businesses to allocate resources more effectively rather than being hindered by excessive regulatory costs.