HM Treasury
HM Treasury is the government’s economic and finance ministry, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth.
Shadow Ministers / Spokeperson
Liberal Democrat
Baroness Kramer (LD - Life peer)Liberal Democrat Lords Spokesperson (Treasury and Economy)
Daisy Cooper (LD - St Albans)
Liberal Democrat Spokesperson (Treasury)
Conservative
Mel Stride (Con - Central Devon)Shadow Chancellor of the Exchequer
Junior Shadow Ministers / Deputy Spokesperson
Conservative
Lord Altrincham (Con - Excepted Hereditary)Shadow Minister (Treasury)
Richard Fuller (Con - North Bedfordshire)
Shadow Chief Secretary to the Treasury
Gareth Davies (Con - Grantham and Bourne)
Shadow Financial Secretary (Treasury)
Baroness Neville-Rolfe (Con - Life peer)
Shadow Minister (Treasury)
Junior Shadow Ministers / Deputy Spokesperson
Conservative
James Wild (Con - North West Norfolk)Shadow Exchequer Secretary (Treasury)
Mark Garnier (Con - Wyre Forest)
Shadow Economic Secretary (Treasury)
Ministers of State
Darren Jones (Lab - Bristol North West)Chief Secretary to the Treasury
Lord Livermore (Lab - Life peer)
Financial Secretary (HM Treasury)
Baroness Gustafsson (Lab - Life peer)
Minister of State (HM Treasury)
Parliamentary Under-Secretaries of State
James Murray (LAB - Ealing North)Exchequer Secretary (HM Treasury)
Emma Reynolds (Lab - Wycombe)
Economic Secretary (HM Treasury)
Torsten Bell (Lab - Swansea West)
Parliamentary Secretary (HM Treasury)
13:57
Estimate Memoranda
This inquiry will examine quantitative tightening, including its impact on the economy and its fiscal costs. It will also investigate …
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of the proposals …
This Order provides for certain “buy-now-pay-later” agreements which are currently exempt agreements within article 60F(2) of the Financial Services and …
A Bill to Authorise the use of resources for the years ending with 31 March 2024, 31 March 2025 and …
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News and Communications
HM Treasury Commons Appearances
Oral Answers to Questions is a regularly scheduled appearance where the Secretary of State and junior minister will answer at the Dispatch Box questions from backbench MPs
Other Commons Chamber appearances can be:- Urgent Questions where the Speaker has selected a question to which a Minister must reply that day
- Adjornment Debates a 30 minute debate attended by a Minister that concludes the day in Parliament.
- Oral Statements informing the Commons of a significant development, where backbench MP's can then question the Minister making the statement.
Westminster Hall debates are performed in response to backbench MPs or e-petitions asking for a Minister to address a detailed issue
Written Statements are made when a current event is not sufficiently significant to require an Oral Statement, but the House is required to be informed.
Bills currently before Parliament
HM Treasury does not have Bills currently before Parliament
Acts of Parliament created in the 2024 Parliament
A Bill to make provision about secondary Class 1 contributions.
This Bill received Royal Assent on 3rd April 2025 and was enacted into law.
A Bill to make provision about finance.
This Bill received Royal Assent on 20th March 2025 and was enacted into law.
A Bill to amend the Crown Estate Act 1961.
This Bill received Royal Assent on 11th March 2025 and was enacted into law.
A Bill to Authorise the use of resources for the years ending with 31 March 2024, 31 March 2025 and 31 March 2026; to authorise the issue of sums out of the Consolidated Fund for those years; and to appropriate the supply authorised by this Act for the years ending with 31 March 2024 and 31 March 2025.
This Bill received Royal Assent on 11th March 2025 and was enacted into law.
A Bill to make provision for loans or other financial assistance to be provided to, or for the benefit of, the government of Ukraine.
This Bill received Royal Assent on 16th January 2025 and was enacted into law.
A Bill to impose duties on the Treasury and the Office for Budget Responsibility in respect of the announcement of fiscally significant measures.
This Bill received Royal Assent on 10th September 2024 and was enacted into law.
A Bill to authorise the use of resources for the year ending with 31 March 2025; to authorise both the issue of sums out of the Consolidated Fund and the application of income for that year; and to appropriate the supply authorised for that year by this Act and by the Supply and Appropriation (Anticipation and Adjustments) Act 2024.
This Bill received Royal Assent on 30th July 2024 and was enacted into law.
HM Treasury - Secondary Legislation
Petitions
e-Petitions are administered by Parliament and allow members of the public to express support for a particular issue.
If an e-petition reaches 10,000 signatures the Government will issue a written response.
If an e-petition reaches 100,000 signatures the petition becomes eligible for a Parliamentary debate (usually Monday 4.30pm in Westminster Hall).
(3,235 in the last 7 days)
(1,548 in the last 7 days)
(211 in the last 7 days)
(152 in the last 7 days)
(3,235 in the last 7 days)
(56 in the last 7 days)
(61 in the last 7 days)
(1,548 in the last 7 days)
c. 1,429 added daily
260,424
(Estimated)
Raise the income tax personal allowance from £12,570 to £20,000
Sign this petition Gov Responded - 20 Feb 2025 Debated on - 12 May 2025closes in 3 weeks, 6 days
Raise the income tax personal allowance from £12570 to £20000. We think this would help low earners to get off benefits and allow pensioners a decent income.
Petition Closed
Don't change inheritance tax relief for working farms
Gov Responded - 5 Dec 2024 Debated on - 10 Feb 2025closed 1 week, 3 days ago
We think that changing inheritance tax relief for agricultural land will devastate farms nationwide, forcing families to sell land and assets just to stay on their property. We urge the government to keep the current exemptions for working farms.
c. 593 added daily
115,527
(Estimated)
Don't apply VAT to independent school fees, or remove business rates relief.
Sign this petition Gov Responded - 20 Dec 2024 Debated on - 3 Mar 2025closes in 1 week, 2 days
Prevent independent schools from having to pay VAT on fees and incurring business rates as a result of new legislation.
Departmental Select Committee
Treasury Committee
Commons Select Committees are a formally established cross-party group of backbench MPs tasked with holding a Government department to account.
At any time there will be number of ongoing investigations into the work of the Department, or issues which fall within the oversight of the Department. Witnesses can be summoned from within the Government and outside to assist in these inquiries.
Select Committee findings are reported to the Commons, printed, and published on the Parliament website. The government then usually has 60 days to reply to the committee's recommendations.
11 Members of the Treasury Committee
Treasury Committee Member since 9th September 2024
Treasury Committee Member since 21st October 2024
Treasury Committee Member since 21st October 2024
Treasury Committee Member since 21st October 2024
Treasury Committee Member since 21st October 2024
Treasury Committee Member since 21st October 2024
Treasury Committee Member since 21st October 2024
Treasury Committee Member since 21st October 2024
Treasury Committee Member since 28th October 2024
Treasury Committee Member since 28th October 2024
Treasury Committee Member since 9th December 2024
Treasury Committee: 14 Current Inquiries
Treasury Committee: Previous Inquiries
50 most recent Written Questions
(View all written questions)HMRC’s priority is to ensure that workers receive the money they are owed as quickly as possible. It is for this reason, in the vast majority of cases, HMRC pursue civil enforcement. In 2023/24 civil enforcement resulted in HMRC issuing 767 Notices of Underpayment to employers. 2024/25 figures are not yet available.
However, for the most egregious breaches of National Minimum Wage law, where employers are persistently non-compliant, or refuse to cooperate with HMRC, criminal prosecution may take place.
The number of employers prosecuted specifically for breaching Section 31(1) “Employer refuses or wilfully neglects to pay NMW” in (a) 2023/24 was 1 and (b) 2024/25 was 1.
Exchequer Secretary (HM Treasury)
The government is introducing legislation to close the tax gap and make the tax system fairer by making recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. As set out at Autumn Budget 2024, this is expected to protect around £2.8 billion from being lost to umbrella company non-compliance across the scorecard period to 2029-30.
Officials have engaged extensively with representatives of the recruitment industry in relation to this measure and will continue to do so.
The government will set out full details of how this measure will operate, alongside draft legislation, later this year. The government will engage with stakeholders to ensure that they have the opportunity to provide feedback before legislation is introduced into Parliament.
The government is committed to supporting businesses to prepare for the implementation of this measure and, to this end, will publish technical guidance for businesses that will be affected by it.
Exchequer Secretary (HM Treasury)
The Government is consulting on proposals to simplify the current gambling tax system by merging the three current taxes that cover remote (including online) gambling into one. The Government is committed to engaging with all stakeholders, as part of the consultation process.
We encourage all stakeholders to engage with the consultation to help ensure that all views are properly considered.
Exchequer Secretary (HM Treasury)
The Government is committed to improving the quality and sustainability of our housing stock. Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.
The Government assesses whether to add ESMs to this relief by evaluating them against the following principles: the primary purpose of the technology must be to improve energy efficiency and reduce carbon emissions, and relieving the technology of VAT must be cost effective and align with broader VAT principles.
Exchequer Secretary (HM Treasury)
As part of their Balance of Payments release, the Office for National Statistics produce statistics on cross-border transactions and positions. This includes information on the aggregate market value of UK quoted equities held by non-resident investors, net inflows of portfolio and other investment from non-resident investors, as well as the total stock of UK corporate bonds held by non-resident investors.
The ONS published their most recent Balance of Payments release on 28 March 2025, which is available on their website at Balance of Payments, UK - Office for National Statistics. The statistics on inflows and stocks/market values can be found in Table J and in Table K respectively.
Exchequer Secretary (HM Treasury)
As part of their Balance of Payments release, the Office for National Statistics produce statistics on cross-border transactions and positions. This includes information on the aggregate market value of UK quoted equities held by non-resident investors, net inflows of portfolio and other investment from non-resident investors, as well as the total stock of UK corporate bonds held by non-resident investors.
The ONS published their most recent Balance of Payments release on 28 March 2025, which is available on their website at Balance of Payments, UK - Office for National Statistics. The statistics on inflows and stocks/market values can be found in Table J and in Table K respectively.
Exchequer Secretary (HM Treasury)
Successful businesses and entrepreneurs who create jobs and wealth are the driving engine of the Government’s mission to increase economic growth. We will support them to succeed whilst making those with wealth pay their fair share toward the public finances.
That is why the Government is removing barriers to growth such as burdensome planning processes and unnecessary regulation, whilst also increasing the rates of capital gains taxation and restricting reliefs for inheritance tax that benefit some of the wealthiest estates. These and other decisions announced at Autumn Budget 2024 will help repair the public finances and fund public services such as the NHS and education.
Exchequer Secretary (HM Treasury)
The Government is committed to supporting British businesses as the world enters a new era of global trade. The government has increased the capacity of UK Export Finance (UKEF) to provide support for exporters by £20 billion and has expanded the British Business Bank (BBB) Growth Guarantee Scheme. UKEF operates at no net cost to the taxpayer and increasing its limits does not have a fiscal cost. BBB support is funded within the overall spending plans set out at Spring Statement 2025.
Exchequer Secretary (HM Treasury)
Business Population Estimates show trends in the number of businesses in the UK by size, alongside sectoral and regional distribution: https://www.gov.uk/government/statistics/business-population-estimates-2024/business-population-estimates-for-the-uk-and-regions-2024-statistical-release.
The ONS also publishes data on business demography, showing the annual change in the number of UK businesses (“birth” and “death” rates): https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/businessdemography/latest.
At Autum Budget 2024, the Government announced generous tax reforms to support small businesses including: more than doubling the employment allowance to £10,500; commitments in the Corporate Tax Roadmap to maintain the Small Profits Rate and marginal relief at their current rates and thresholds; and freezing the small businesses multiplier for 2025/26.
The Government has also committed £250m in 25-26 for the British Business Bank’s small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme.
Exchequer Secretary (HM Treasury)
Dan Norris
(Independent - North East Somerset and Hanham)
The Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.
The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Its rules require the UK’s largest banks and building societies to assess the impact of a closure or material alteration of a relevant cash withdrawal or deposit facility and put in place a new service if necessary. Assessments are undertaken by LINK, the industry designated coordinating body responsible for conducting cash access assessments. LINK take into account a number of factors including those unique to each location, such as the size and vulnerability of the population and whether it is reasonable for people to travel to nearby facilities, factoring in geographic barriers such as hills, rivers and major roads.
The Government is working closely with industry to roll out 350 banking hubs across the UK by the end of this Parliament. These hubs will provide small businesses and individuals with critical cash and in-person banking services. Over 225 banking hubs have been recommended to date and over 150 are already open.
Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
As the Minister responsible for the UK tax system, I have received representations on this subject from a number of Hon Members and I have participated in several debates in this House since Autumn Budget 2024. I have also met with Hon Members and several agricultural organisations to listen to their views. The Government has been listening to the different views on this subject and continues to believe the approach we have set out is appropriate.
Exchequer Secretary (HM Treasury)
Claire Hanna
(Social Democratic & Labour Party - Belfast South and Mid Down)
The UK Shared Prosperity Fund was extended at Autumn Budget 2024 at a level of £902m, providing support for local areas, including economic inactivity support in Northern Ireland. In 2025 – 2026, Northern Ireland was allocated £45.48 million under the UKSPF, of which £25.8m is expected to be spent on economic inactivity support. Further decisions on local growth funding are a matter for the Spending Review.
Wider employment support is the responsibility of the Northern Ireland Executive.
Chief Secretary to the Treasury
The government has announced significant additional resource for HMRC. This includes an increase of around 400 people over the next five years to tackle offshore non-compliance by wealthy people, estimated to bring in £500 million in additional compliance yield over the same period: https://www.gov.uk/government/publications/spring-statement-2025-document/spring-statement-2025-html
The government is also ensuring that HMRC has the international data it needs and is implementing the Cryptoasset Reporting Framework and amendments to the Common Reporting Standard:
Exchequer Secretary (HM Treasury)
The Government is consulting on proposals to simplify the current gambling tax system by merging the three current taxes that cover remote (including online) gambling into one. The Government is committed to engaging with all stakeholders, including representatives of the horseracing industry, as part of the consultation process.
The Government recognises the significant cultural and economic value of British horseracing, both as a major sporting tradition and as an important contributor to rural economies across the country.
The Government encourages all interested parties to participate in the consultation.
Exchequer Secretary (HM Treasury)
Claire Hanna
(Social Democratic & Labour Party - Belfast South and Mid Down)
The UK Internal Market Scheme (UKIMS) was launched in June 2023, allowing businesses across the United Kingdom to apply, and HMRC has successfully encouraged over 10,000 traders to get authorised.
HMRC is required to take a decision regarding the outcome of a UKIMS application within 120 days days. Applications are typically processed much faster with an average turnaround time of 12 to 15 working days. HMRC must undertake a range of checks to verify eligibility for the scheme and, in certain cases, seek further information from businesses. We do not collect data on the time taken for traders to complete UKIMS applications.
Exchequer Secretary (HM Treasury)
Claire Hanna
(Social Democratic & Labour Party - Belfast South and Mid Down)
The UK Internal Market Scheme (UKIMS) was launched in June 2023, allowing businesses across the United Kingdom to apply, and HMRC has successfully encouraged over 10,000 traders to get authorised.
HMRC is required to take a decision regarding the outcome of a UKIMS application within 120 days days. Applications are typically processed much faster with an average turnaround time of 12 to 15 working days. HMRC must undertake a range of checks to verify eligibility for the scheme and, in certain cases, seek further information from businesses. We do not collect data on the time taken for traders to complete UKIMS applications.
Exchequer Secretary (HM Treasury)
Children under 16 years old on the date of the flight, and in the lowest class of travel, are exempt from Air Passenger Duty (APD). If children under 16 years old are travelling in any other class (such as premium economy) or in business jets, they are not exempt. Children under 2 years old without a seat are exempt from Air Passenger Duty for all classes of travel.
Airline operators declare the number of chargeable passengers by destination band and by rate. They do not break down chargeable passengers by age, and therefore this is not information that HMRC collects. The government has published annual statistics and analysis on airline passenger numbers and Air Passenger Duty (APD) receipts in the UK which are administered by HM Revenue and Customs. It is available at: https://www.gov.uk/government/statistics/air-passenger-duty-bulletin.
Exchequer Secretary (HM Treasury)
Children under 16 years old on the date of the flight, and in the lowest class of travel, are exempt from Air Passenger Duty (APD). If children under 16 years old are travelling in any other class (such as premium economy) or in business jets, they are not exempt. Children under 2 years old without a seat are exempt from Air Passenger Duty for all classes of travel.
Airline operators declare the number of chargeable passengers by destination band and by rate. They do not break down chargeable passengers by age, and therefore this is not information that HMRC collects. The government has published annual statistics and analysis on airline passenger numbers and Air Passenger Duty (APD) receipts in the UK which are administered by HM Revenue and Customs. It is available at: https://www.gov.uk/government/statistics/air-passenger-duty-bulletin.
Exchequer Secretary (HM Treasury)
Since announcement at Autumn Budget 2024, HMRC have undertaken a wide range of stakeholder engagement and employer communications through a variety of channels in advance of the significant increase to the Employment Allowance to £10,500 and removal of the threshold which prevented some larger employers from claiming. This includes webinars highlighting important changes for the new tax year for employers, and written articles in numerous editions of HMRC’s Employer Bulletin, Agent Update and Stakeholder Digest.
In addition, HMRC has a range of channels to raise awareness of changes in tax policy. These include communications issued directly to stakeholders or published on gov.uk, and engagement with stakeholders through established forums such as the Employment and Payroll Group, which the Federation of Small Businesses attend.
Exchequer Secretary (HM Treasury)
Since announcement at Autumn Budget 2024, HMRC have undertaken a wide range of stakeholder engagement and employer communications through a variety of channels in advance of the significant increase to the Employment Allowance to £10,500 and removal of the threshold which prevented some larger employers from claiming. This includes webinars highlighting important changes for the new tax year for employers, and written articles in numerous editions of HMRC’s Employer Bulletin, Agent Update and Stakeholder Digest.
In addition, HMRC has a range of channels to raise awareness of changes in tax policy. These include communications issued directly to stakeholders or published on gov.uk, and engagement with stakeholders through established forums such as the Employment and Payroll Group, which the Federation of Small Businesses attend.
Exchequer Secretary (HM Treasury)
Daisy Cooper
(Liberal Democrat - St Albans)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.
In accordance with standard practice, a TIIN for the reforms to business property relief will be published alongside the draft legislation before the relevant Finance Bill.
Exchequer Secretary (HM Treasury)
The Government is clear that all businesses, whether based in the UK or overseas, should pay their fair share of taxes where they operate in the UK
We will continue to keep the UK’s Most Favoured Nation tariff schedule, known as the UK Global Tariff, under review to reduce unnecessary costs and promote a stable operating environment for businesses.
UK VAT is charged at the same rate regardless of whether goods are produced domestically or imported.
The Government has also taken significant steps to ensure that the amount of Corporation Tax companies pay in the UK on their profits reflects the economic activities they undertake here. For instance, the Corporate Interest Restriction rules prevent multinationals from avoiding tax by using contrived financing arrangements to make excessive interest deductions.
The introduction of a global minimum corporate tax will protect against aggressive tax planning and profit shifting, helping ensure profits made in the UK are taxed in the UK.
Exchequer Secretary (HM Treasury)
The Government carefully considered the timing of implementation of VAT on private school fees and decided to apply VATfrom January 2025, in order to raise the funding needed to help deliver its education priorities. As a result of the January start date, the VAT policy is forecast to raise £460 million in 2024/25.
Schools and parents had five months to prepare for these changes, and HMRC put in place measures to support schools, including bespoke guidance, updated registration systems, and additional resources to process applications.
Exchequer Secretary (HM Treasury)
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. For a given distance-based band, the standard rate applies to travel in any non-economy class of travel or where the seat pitch is more than 1.016 metres (40 inches). This includes premium economy, as well as first class and business class.
The Government is clear that APD is an appropriate tax that ensures airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. Other countries also have different forms of aviation taxes.
Exchequer Secretary (HM Treasury)
Tourism is a significant economic, cultural and social asset to the UK. The sector is a powerful engine for economic growth and job creation across all regions. Tourism contributes not only economically, but also in creating pride in local communities and contributing to the UK's soft power.
Exchequer Secretary (HM Treasury)
Where these projects required funding in 25/26, this funding has already been allocated to the Department for Transport. Funding allocations for future years will be set out at the upcoming spending review on June 11th.
Chief Secretary to the Treasury
The Government is committed to ensuring eligible parents, whether they are employed or self-employed, can access Tax-Free Childcare as efficiently as possible.
To be eligible for Tax-Free Childcare, a parent and their partner (if they have one) must expect to earn at least the National Minimum or National Living wage for 16 hours a week on average and earn no more than £100,000 per year. The process to access Tax-Free Childcare for self-employed and employed parents is the same. Both are required to apply and reconfirm each quarter that they meet the same eligibility criteria.
In instances where stated expectations differ from the information HMRC holds through PAYE or Self-Assessment Records, at times HMRC may need information from customers to confirm their eligibility.
The Government recognises that evidencing income can be more complex for self-employed individuals, particularly for those with variable or seasonal earnings. That is why self-employed parents are only expected to meet the minimum income requirement over the entire tax-year (and not quarterly as is the case for employees). In addition, parents who have started new self-employment are also exempted from meeting the minimum income requirement in their first 12 months in Tax-Free Childcare.
Chief Secretary to the Treasury
The rules for Class 3 voluntary National Insurance Contributions allow individuals to fill gaps in their National Insurance record for the past 6 tax years. There are no plans to change these rules.
Exchequer Secretary (HM Treasury)
The UK is committed to strengthening international tax cooperation, and works closely with our international partners from all regions, both bilaterally and multilaterally through international organisations.
The UK believes that a UN Framework Convention has the potential to advance international tax cooperation, but it will only be successful if it seeks to build upon rather than reinvent existing initiatives, and seeks to secure the broad support and participation of members.
Exchequer Secretary (HM Treasury)
The Government supports the creative industries, including orchestras, through funding and through the tax system. Orchestra Tax Relief (OTR) provides tax relief on productions costs and provided £33 million of support in 2022-23.
To qualify for OTR, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra also contains at least 12 instrumentalists, not including the voice, and the instrumentalists are the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically.
Exchequer Secretary (HM Treasury)
Air Passenger Duty (APD) only applies to UK-departing flights. The Government has published Tax Impact and Information Notes (TIINs) assessing the impacts of the 2025/26 and 2026/27 Air Passenger Duty (APD) rates, which can be found at GOV.UK:
Exchequer Secretary (HM Treasury)
The Government continually keeps the tax system under review.
Published estimates for illustrative tax changes can be found in HMRC’s Direct effects of illustrative tax changes bulletin including changes to Capital Gains Tax [1]
[1] https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes/direct-effects-of-illustrative-tax-changes-bulletin-january-2025
Exchequer Secretary (HM Treasury)
The tables below show the number of contacts received by HMRC Fraud Reporting Gateway in relation to Alcohol and Tobacco:
Alcohol:
Year | Online Submission | Telephone Submission | Total |
24/25 | 31,728 | 7,857 | 39,585 |
23/24 | 27,443 | 9,045 | 36,488 |
22/23 | 30,688 | 8,184 | 38,872 |
21/22 | 21,107 | 10,674 | 31,781 |
20/21 | 27,296 | 8,152 | 35,448 |
Tobacco:
Year | Online Submission | Telephone Submission | Total |
24/25 | 7,605 | 2,094 | 9,699 |
23/24 | 5,416 | 1,873 | 7,289 |
22/23 | 5,625 | 2,060 | 7,685 |
21/22 | 1,558 | 2,424 | 3,982 |
20/21 | 1,988 | 1,535 | 3,523 |
Exchequer Secretary (HM Treasury)
The Government is committed to incentivising greater savings and investment.
As set out at the Spring Statement, the Government is looking at options for reforms to Individual Savings Accounts that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission.
Financial Secretary (HM Treasury)
The Government recognises the importance of research and development (R&D) in driving innovation, and the benefits it can bring for society. By incentivising R&D, tax reliefs can play a vital role in the Government’s mission to boost economic growth.
R&D tax reliefs are delivered as part of the Corporation Tax self-assessment process. This requires claimant companies to assess their own entitlement. HMRC has produced specific guidance to assist claimants to make that assessment. This includes discussion on the importance of being able to substantiate the advance in science and technology sought, and how that can be aided by the involvement of a qualified competent professional.
The Government is committed to responding to stakeholder feedback and enhancing the administration of R&D tax reliefs. To support this, HMRC published a consultation on 26 March to explore widening the use of advance clearances in the reliefs to help further reduce error and fraud, while also improving the customer experience and providing certainty to businesses.
The Corporate Tax Roadmap confirmed HMRC will establish an R&D expert advisory panel and HMRC launched recruitment for the panel on 6 May. The panel will work with HMRC to improve the functioning of the R&D tax reliefs system by increasing clarity of guidance for claimants and enhancing HMRC’s understanding of innovation and developments across key growth sectors which will assist in its assessment of R&D claims.
The Government will continue to consider longer term simplifications and incremental improvements to the effectiveness of the reliefs.
Financial Secretary (HM Treasury)
Lord Jackson of Peterborough
(Conservative - Life peer)
At the Budget in October the Chancellor set aside £4.7 billion of funding for departments in order to support them with the increased costs as a result of the rise in employer national insurance contributions.
This funding has been allocated to departments, with the Barnett formula applying in the usual way, which is in line with the approach taken under the previous Government’s Health and Social Care Levy. It is for the relevant department to decide the appropriate distribution of funding amongst workforces, including police and fire services.
Updated departmental budgets for 2025/26 including allocations were published at the Spring Statement. The Government also plans to publish individual departments’ allocations as part of Main estimates.
Financial Secretary (HM Treasury)
The data on beef and ethanol products imported from the USA to Northern Ireland is given in the attached table.
HM Revenue & Customs (HMRC) is responsible for the collection and publication of data on imports and exports of goods to and from the UK. HMRC releases this information monthly, as an accredited official statistic called the Overseas Trade in Goods Statistics (OTS), which is available via their dedicated website (www.uktradeinfo.com). From this website, it is possible to build your own data tables based upon bespoke search criteria.
Financial Secretary (HM Treasury)
The data on beef and ethanol products imported from the USA to the UK is given in the attached table.
HM Revenue & Customs (HMRC) is responsible for the collection and publication of data on imports and exports of goods to and from the UK. HMRC releases this information monthly, as an accredited official statistic called the Overseas Trade in Goods Statistics (OTS), which is available via their dedicated website (www.uktradeinfo.com). From this website, it is possible to build your own data tables based upon bespoke search criteria.
Financial Secretary (HM Treasury)
As published in the Infrastructure and Project Authority’s most recent Annual Report for 2023 to 2024, the whole-life cost followed by the number of projects on the Government Major Projects Portfolio for each of the last seven financial years is as follows:
- 2018: £461bn across 133 projects
- 2019: £496bn across 133 projects
- 2020: £481bn across 125 projects
- 2021: £581bn across 184 projects
- 2022: £678bn across 235 projects
- 2023: £805bn across 244 projects
- 2024: £834bn across 227 projects
This information is presented within the Infrastructure and Project Authority’s most recent Annual Report for 2023 to 2024.
The headcount for the Infrastructure and Projects Authority for each of the last seven years (the number of the Full-Time Equivalent staff from the 1st April each year) is as follows:
- 2018, 156.3
- 2019, 155.7
- 2020, 194.1
- 2021, 199.6
- 2022, 190.6
- 2023, 177.4
- 2024, 183.6
Financial Secretary (HM Treasury)
The latest data from the Office for National Statistics (ONS) shows that in first quarter of 2025, average weekly pay (including bonuses) across the whole economy grew by 5.5% from the first quarter of 2024.
Financial Secretary (HM Treasury)
The Government monitors a wide range of indicators to assess the UK’s economic performance. Multiple surveys and indicators are released by different data providers every month. Many of these are volatile and can move materially from month to month.
Official economic forecasts and assessments of policy impacts are set out in the Office for Budget Responsibility’s Economic and Fiscal Outlook documents, the most recent of which was published in March 2025.
Financial Secretary (HM Treasury)
The latest provisional estimates of payrolled employee numbers from HMRC Real Time Information show there were 30.3 million employees on Payrolls in April. Payrolled employee numbers fell by 33,000 on the month and 106,000 on the year in April 2025.
The Office for Budget Responsibility (OBR) provides independent economic forecasts and assesses the impact of government policy decisions. With all policies considered, the OBR's March 2025 EFO forecasts the employment level to increase from 33.6 million in 2024 to 34.8 million in 2029.
Financial Secretary (HM Treasury)
The Cabinet Office publish a monthly register of the hospitality that Ministers have received, which can be found on gov.uk: https://www.gov.uk/government/collections/register-of-ministers-gifts-and-hospitality
It should be noted, however, that the Cabinet Office state in their guidance that the names of individuals should only be reported where the individuals are representing their own interests, with the exception of Senior Media Figures.
Economic Secretary (HM Treasury)
Richard Holden
(Conservative - Basildon and Billericay)
The Cabinet Office publish a monthly register of Ministers’ gifts and hospitality. These returns, including the Chancellor’s, can be found on gov.uk: https://www.gov.uk/government/collections/register-of-ministers-gifts-and-hospitality
Exchequer Secretary (HM Treasury)
The Chancellor did not discuss the Foreign Influence Registration Scheme with HSBC or the China Council for the Promotion of International Trade during the lunch and dinner referred to in the HM Treasury: Ministers’ Hospitality - January 2025, published on 27 February 2025.
Exchequer Secretary (HM Treasury)
Estimates of the level of error and fraud in Research and Development (R&D) tax relief and information regarding additional tax revenue generated by HMRC’s compliance activity are published in HMRC’s Annual Report and Accounts. The latest publication can be found on Gov.UK and the next publication is due in July.
The methodology used to calculate the level of error and fraud for 2020-2021 was significantly improved for the 2022-2023 Annual Reports and Accounts. Estimates of the level of error and fraud in R&D tax relief for earlier years are not available on a comparable basis.
Analysis shows that around half of all claims, by volume, contained some element of non-compliance with fraud indicators found in fewer than 10 per cent of claims and accounting for less than 5 per cent of the total value claimed.
HMRC’s Approach to Research and Development tax relief 2023 to 2024 details the overall amount of tax recovered through HMRC’s compliance activity for the past two financial years, this information is also set out in the table below.
| 2022-23 | 2023-24 |
Proportion of compliance checks resulting in an adjustment being required | 71% | 77% |
Tax recovered from compliance checks | £288 million | £441 million |
HMRC seeks to recover R&D tax relief where it was not claimed in accordance with the law and in line with statutory time limits. In the majority of cases, adjustments for incorrect R&D claims will be limited to claims investigated within the normal time limit of 12 months from the date the claim is submitted. HMRC also considers raising assessments outside of this normal time limit where relevant legislative conditions are met, including where there is evidence of deliberate non-compliance.
Financial Secretary (HM Treasury)
HMRC does not publish the proportion of Research and Development (R&D) claims involving nominee or third-party bank accounts for the past five financial years.
Since November 2023, no new assignments of R&D tax credits have been possible and since April 2024, claimants have not been able to nominate a third-party payee. The changes were made as analysis showed that more than 90% of R&D claims that were fraudulent or displayed some markers of fraud used nominee bank accounts. These changes reduce the incentive for agents to submit spurious claims, as customers will receive the payment direct. They provide customers with more visibility over claims made on their behalf and allow them to correct any inaccuracies.
Financial Secretary (HM Treasury)
HMRC can disclose the misconduct of a tax advisor to any professional regulatory body they are a member of, under section 20(3) of the Commissioners of Revenue and Customs Act 2005.
The table below provides the total number of disclosures made to professional regulatory bodies between 2019-2020 and 2023-2024. The table refers to the total number of referrals and HMRC does not publish relief specific breakdowns of disclosures it makes to professional regulatory bodies.
Year | Number of disclosures |
2019-2020 | 25 |
2020-2021 | 13 |
2021-2022 | 14 |
2022-2023 | 31 |
2023-2024 | 45 |
The government has recently consulted on options to enhance HMRC’s powers to tackle poor tax adviser behaviour, which includes Research & Development agents. This consultation closed on 7 May 2025. It is the government’s intention that any legislative changes following the consultation will be included in the 2025 Finance Bill.
Financial Secretary (HM Treasury)