Rupert Lowe MP tells Moore News that IR35 reform must be abolished, despite the chancellor ducking his ask that all contractors return to deciding their own IR35 status.
Labour has rejected an opportunity to signal it wants to repeal the IR35 Off-Payroll Working (OPW) rules.
Kingsbridge, an IR35 insurer, says the rejection means that, ahead of Autumn Budget 2025, IR35 reform “as a concept now won’t be going anywhere, anytime soon”.
The insurer’s comments came after a minister was asked if Labour would make it party “policy” for contractors to decide their own IR35 status again.
‘IR35 reform must be scrapped’
Asked in the House of Commons by independent Great Yarmouth MP Rupert Lowe, the question was put to His Majesty’s Treasury (HMT).
Fresh from founding the “Restore Britain” movement, Mr Lowe spoke yesterday to Moore News, insisting that IR35 reform “must” be scrapped.
Formerly of Reform (which itself has pledged to “abolish” IR35), Lowe in effect asked HMT if it would reinstate the IR35 proposal of mini-Budget 2022.
‘Truss-Kwarteng revoke IR35 reform pledge blindsided many’
The then-Chancellor Kwasi Kwarteng announced that workers operating via an intermediary would “once again be responsible for determining” IR35 status.
Matt Tyler, IR35 consultancy manager at Kingsbridge, last night recalled the vow from September 2022, which was made under the Liz Truss-led Tory government.
Tyler said it “blindsided many, contractors and advisers – due to its suddenness”.
‘Enable contractors to determine their own IR35 status’
Kwarteng’s successor at the Treasury, Jeremy Hunt, U-turned the vow just three weeks later, on October 14th 2022.
Lowe’s under-the-radar question in the Commons offered Labour an opportunity to support revoking IR35 reform without ‘blindsiding’ anyone.
But the government has now rejected the opportunity.
Asked by Lowe on May 30th 2025 if Chancellor Rachel Reeves “will make it her policy to enable contractors to determine their own IR35 status”, a Treasury minister replied:
“As a result of the reform [to IR35], HMRC estimate an additional £4.2bn has been received in tax revenues, overall, in the period October 2019 to March 2023.”
‘Labour silence on repealing IR35 off-payroll working rules is perhaps understandable’
The answer of June 9th 2025 contains three additional paragraphs.
But none of them directly answer Lowe’s central query, and all imply support for the OPW framework.
The government’s full answer, provided by the Treasury’s Exchequer Secretary James Murray MP, is available on the Off-payroll Working ‘Question for Treasury’ page.
To read Simon’s article in full, please visit Kingsbridge.co.uk, where this article was first published (as part of Moore News’ branded journalism package).