In this week’s Enews, we look at the review of the Loan Charge commissioned by the government. There is also news on business confidence for early 2025 and pensions reform to update you on.
News - 31 January 2025

Government commissions review of the Loan Charge
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 website
UK firms expecting slowdown
UK firms are expecting to reduce both output and hiring this quarter, according to a survey conducted by the Confederation of British Industry (CBI).
Activity has been flat or falling since the middle of 2022, reflecting a prolonged period of stagnation.
The survey suggested that sentiment among businesses dipped in the aftermath of the Government’s Autumn Budget.
Some businesses said that the tax rises had resulted in them reviewing their budgets at short notice and taking steps to mitigate higher costs.
Plans include raising prices to pass on additional costs to clients, trimming investment plans and cutting staff to reduce business expenses.
Alpesh Paleja, Interim Deputy Chief Economist at the CBI, said:
‘After a grim lead-up to Christmas, the New Year hasn’t brought any sense of renewal, with businesses still expecting a significant fall in activity. Alongside plans to cut staff and raise prices further, this risks an increasingly awkward trade-off for policymakers.
‘Anecdotes suggest that companies are being hit by lacklustre demand and caution among consumers, while also continuing to adjust to measures announced in the Budget.
‘There is an urgent need to get momentum back into the economy. The government can help shift the UK’s economic narrative with more determined focus on measures that could drive growth.’
Internet link: CBI website
Pension reforms to ‘unlock billions’ for government growth agenda
New rules that will give more flexibility over how occupational defined benefit pension schemes are managed, according to the government.
The government said this will remove blockages that are inhibiting its growth agenda.
Approximately 75% of schemes are currently in surplus, worth £160 billion, but restrictions have meant that businesses have struggled to invest them.
Where trustees agree to share a portion of scheme surplus with a sponsoring employer, the employer may choose to invest these funds in their core business, for example to purchase equipment or supplies, and/or provide additional benefits to members of the pension scheme.
Prime Minister, Keir Starmer said:
‘The number one mission of my government is to secure growth, drive higher living standards for everyone, and get more money into people’s pockets.
‘To achieve the change our country needs requires nothing short of rewiring the economy. It needs creative reform, the removal of hurdles, and unrelenting focus.
‘Whether it’s how public services are run, regulation or pension rules, my government will not accept the status quo. Today’s changes will unlock billions of investment, pushing forward in delivering my Plan for Change.’
Internet link: GOV.UK