I've long believed that the VAT threshold should be lowered or abolished to provide every business a level playing field, to reduce cash-no-vat transactions, encourage growth and generate additional tax revenue. It's a subject much discussed on LJN in the past.
The Government's OTS has just published its first review of VAT thresholds, hence are actively considering options to simplify the already complex VAT area.
Various financial pundits are suggesting a reduction to £26K or even £20K could be on the cards, with some even hoping for a £0 threshold (unlikely, I'd suggest).
The FSB produced a White Paper some time ago and are expected to review its recommendations for the SME sector to the Government.
So, it's a "watch this space" situation for now............