UK tax reform and trust: What the King’s Speech didn’t say

28 May 2026

Last updated: 29 May 2026

Katie Close CA
Director of Tax, ICAS

The King’s Speech was silent on tax strategy, but what should be the priority for tax?

The King’s Speech is traditionally the moment a government sets out its legislative priorities and economic direction. This year, however, one notable omission was any meaningful mention of tax, beyond the brief introduction of a tourist tax in England.

In a fiscal landscape shaped by post-pandemic pressures, demographic shifts, faltering growth and concern around sustainable public finances, the need for thoughtful tax reform should be a priority. But rather than focusing on what was not said, the silence presents an opportunity to reflect on a deeper issue: how do we build trust in the UK tax system and why is it important.

In 2020, HMRC and the Treasury delivered a 10-year plan to build a trusted and modern tax administration, acknowledging that trust is essential to a well-functioning tax system. Businesses and individuals are seeing considerable change as modernisation and digitisation initiatives roll out. The introduction of Making Tax Digital (MTD) for Income Tax is the latest project, bringing millions of taxpayers into a fully online system.

With greater use of technology in tax, understanding how trust is built, and how technology impacts that trust, is essential.

At a more fundamental level, the complexity of the UK’s tax code is also a persistent barrier to taxpayer confidence. The challenge for government is how tax administration modernisation can ultimately overcome the complexity of the existing tax legislation when it comes to building trust.

Why trust matters

Trust is the foundation of any effective tax system. Without it, compliance declines, enforcement costs rise, and the legitimacy of the system itself is called into question. A combination of complexity, perceived unfairness, and policy volatility risks undermining public confidence in the tax administration.

These are not new issues in UK tax. However, as the King’s Speech highlighted, we now face increasing levels of volatility and uncertainty, both globally and nationally. Tax, as both a system directly affected by this uncertainty and as the largest source of public revenue, is under growing pressure too.

Beyond compliance, trust in the tax system also encourages long-term growth in our economy. When businesses and individuals trust and understand the tax system, they feel more confident to start or expand a business, to employ new people and to contribute to our local economies.

Complexity in tax

One of the most persistent barriers to trust is the complexity of the tax code. Successive governments have added new rules and reliefs, often in response to short-term fiscal pressures rather than as part of a long-term strategy.

For individuals and businesses alike, navigating reliefs, thresholds, and anti-avoidance rules is increasingly difficult.

This complexity breeds uncertainty, and uncertainty undermines trust. Uncertainty can also be expensive. VAT cases are notorious for long and costly disputes over the correct treatment.

For Scottish businesses, there can be added complexity in dealing with discrepancies between how UK tax reliefs work and how Scots Law operates.

A renewed commitment to simplification would be a powerful signal. It would show that accessibility and understanding of tax are key to a thriving business and entrepreneur sector, and ultimately essential to a fair tax system.

The need for stability and predictability

Trust is also closely linked to stability. Frequent changes to tax policy, often announced at Budget with limited consultation or implemented at speed, can create a sense of unpredictability. For businesses making long-term investment decisions, this is particularly problematic.

A more transparent and consultative approach to tax policymaking would help address this. This includes meaningful engagement with stakeholders, clear articulation of policy objectives, and sufficient lead time for implementation.

The existing framework for tax consultation is robust in principle, but its effectiveness depends on consistent application and listening to the concerns of sector specialists and the individuals affected.

Looking forward

The silence on tax in the King’s Speech may be positive in one respect, that major reforms are not imminent.

This could provide a window to prioritise stability, giving taxpayers a period of certainty. However, this stability should be used by the government to create a clear long-term strategy for boosting trust in the tax system with an immediate prioritisation on simplification and addressing the challenges of digitisation.