An influential coalition of Britain's professional services leaders has issued a stark warning to Chancellor Rachel Reeves, stating that a proposed tax raid on limited liability partnerships would severely damage the UK's economic prospects.
Coalition of Industry Leaders Voices Opposition
Sky News has obtained a letter sent to the chancellor on Thursday 13 November 2025 signed by leading figures from multiple prestigious organisations. The signatories include the president of The Law Society, the chief executive of the Institute of Chartered Accountants in England and Wales, and the bosses of other major trade bodies including TheCityUK and the BVCA.
The letter was also endorsed by the City of London Law Society and The City of London Corporation, representing a unified front from the sector. This warning comes less than two weeks before the chancellor delivers her crucial Budget statement.
Specific Concerns About LLP Tax Changes
The professional services chiefs are specifically concerned about reported plans to impose employers' national insurance on limited liability partnerships (LLPs). They argue that such a move would directly contradict the government's ambition to support professional services as a growth partner.
In their communication, the leaders stated: "Such a move would strike at the heart of a sector that is not only growing but actively partnering with Government to deliver economic growth." They emphasised that the professional services sector represents one of Britain's global success stories, driving investment, creating jobs, and reinforcing the UK's reputation as an attractive business destination.
Potential Consequences for UK Economy
The letter outlines several serious consequences that could result from the proposed tax changes:
- Stunted economic growth across the UK's already faltering economy
- Forced reconsideration of corporate structures by firms, creating instability
- Undermining of the government's growth partnership with the sector
- Damage to the UK's appeal to international investors
- Risk of creating a "perfect storm" when combined with other regulatory changes
The leaders warned that "introducing higher taxes on LLPs now would be a misstep and will stunt growth" at a particularly challenging time for the economy. They highlighted that firms are already facing significant regulatory changes, including anti-money laundering compliance and evolving tax adviser rules.
The coalition also raised concerns about international competition, noting that "our global competitors - many of whom are actively courting professional services firms - would seize the opportunity to attract talent and capital away from the UK."
This intervention adds to numerous warnings from across the economy about the measures the chancellor might implement to address an estimated £30 billion fiscal black hole. The Treasury has declined to comment on the prospective move, though recent reports suggest the potential tax raid might be less severe than initially feared following earlier warnings from senior sector figures.
