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.
This inquiry will examine quantitative tightening, including its impact on the economy and its fiscal costs. It will also investigate …
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: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.
HM Treasury does not have Bills currently before Parliament
A Bill to Authorise the use of resources for the year ending with 31 March 2026; 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 2025.
This Bill received Royal Assent on 21st July 2025 and was enacted into law.
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.
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).
Raise the income tax personal allowance from £12,570 to £20,000
Gov Responded - 20 Feb 2025 Debated on - 12 May 2025Raise 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.
Don't change inheritance tax relief for working farms
Gov Responded - 5 Dec 2024 Debated on - 10 Feb 2025We 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.
Don't apply VAT to independent school fees, or remove business rates relief.
Gov Responded - 20 Dec 2024 Debated on - 3 Mar 2025Prevent independent schools from having to pay VAT on fees and incurring business rates as a result of new legislation.
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.
If a business only occupies one property, and the property’s rateable value (RV) is lower than £12,000 from 2026, it will be eligible for 100% Small Business Rate Relief (SBRR) and will pay nothing in business rates. SBRR is also available if RV is between £12,001 and £15,000, and the rate of relief tapers from 100% to 0%.
The 2026 revaluation began under the previous government to update values since the pandemic. If the property loses some or all of its SBRR or Rural Rate Relief (RRR) as a result, then its bill increase will be capped at £800 for the year or the relevant transitional relief caps (5% or 15%), whichever is higher. That is part of this government’s support to pubs to insulate them from the effects of the revaluation.
To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down.
You can find more detail on these changes at: https://www.gov.uk/government/publications/budget-2025-retail-hospitality-and-leisure-factsheet/budget-2025-retail-hospitality-and-leisure-factsheet
The High Value Council Tax Surcharge (HVCTS) will apply to owners of properties worth £2 million or above, ensuring those with the most valuable properties pay their fair share. The HVCTS will affect fewer than 1% of all properties across England.
The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to previous levels. The planned increase in line with inflation for 2026-27 will not take place, with the government increasing fuel duty rates in line with RPI from April 2027. This will save the average van driver £100 next year compared to previous plans, and the average HGV driver more than £800
The Government also announced that VED rates for cars, vans and motorcycles will be uprated by RPI in 2026-27 as in previous years.
Businesses are able to claim employer NICs reliefs including those for under-21s and under-25 apprentices. This means employers pay no employer NICs for apprentices under 25 or employees under 21 on earnings up to £50,270.
The OBR expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
Businesses are able to claim employer NICs reliefs including those for under-21s and under-25 apprentices. This means employers pay no employer NICs for apprentices under 25 or employees under 21 on earnings up to £50,270.
The OBR expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
Businesses are able to claim employer NICs reliefs including those for under-21s and under-25 apprentices. This means employers pay no employer NICs for apprentices under 25 or employees under 21 on earnings up to £50,270.
The OBR expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
Businesses are able to claim employer NICs reliefs including those for under-21s and under-25 apprentices. This means employers pay no employer NICs for apprentices under 25 or employees under 21 on earnings up to £50,270.
The OBR expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
The government is making fair choices on tax so it can deliver on the public’s priorities, including maintaining the Secondary Threshold until April 2031. In April 2025, the government more than doubled the Employment Allowance from £5,000 to £10,500.
The OBR expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
The government is making fair choices on tax so it can deliver on the public’s priorities, including maintaining the Secondary Threshold until April 2031. In April 2025, the government more than doubled the Employment Allowance from £5,000 to £10,500.
The OBR expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
The government is making fair choices on tax so it can deliver on the public’s priorities, including maintaining the Secondary Threshold until April 2031. In April 2025, the government more than doubled the Employment Allowance from £5,000 to £10,500.
The OBR expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
The government is making fair choices on tax so it can deliver on the public’s priorities, including maintaining the Secondary Threshold until April 2031. In April 2025, the government more than doubled the Employment Allowance from £5,000 to £10,500.
The OBR expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
The Department for Transport regularly engages with road haulage industry associations and wider industry to understand the financial challenges faced by the sector.
The Government introduced important new arrangements for the movement of parcels moving to and from Northern Ireland, ensuring that goods can continue to move smoothly between Great Britain and Northern Ireland.
HMRC does not carry out routine customs checks on parcels moving into Northern Ireland from Great Britain, save those that are conducted on a risk and intelligence led basis to tackle fraud and criminality.
HMRC has published clear guidance to support parcel operators and continues to engage with the express sector regularly to ensure businesses and consumers in Northern Ireland benefit from these arrangements.
Rebated fuels must be supplied by Registered Dealers in Controlled Oil who are approved by HMRC to ensure that fuel is only obtained by those entitled to use it.
Rebated fuels can only be used in eligible vehicles and machines when they are being used for a qualifying purpose, which includes agricultural activities.
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in the manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
Around a third of properties pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers.
If a property loses eligibility for SBRR at the 2026 revaluation because their rateable value exceeds the threshold, the Supporting Small Business scheme will cap their bill increases for three years at the higher of £800 per year, equivalent to £65 per month, or the relevant Transitional Relief caps. These caps are applied before changes in other reliefs and local supplements.
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in the manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
Around a third of properties pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers.
If a property loses eligibility for SBRR at the 2026 revaluation because their rateable value exceeds the threshold, the Supporting Small Business scheme will cap their bill increases for three years at the higher of £800 per year, equivalent to £65 per month, or the relevant Transitional Relief caps. These caps are applied before changes in other reliefs and local supplements.
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in the manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
Around a third of properties pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers.
If a property loses eligibility for SBRR at the 2026 revaluation because their rateable value exceeds the threshold, the Supporting Small Business scheme will cap their bill increases for three years at the higher of £800 per year, equivalent to £65 per month, or the relevant Transitional Relief caps. These caps are applied before changes in other reliefs and local supplements.
At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.
Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.
This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).
To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.
At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.
Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.
This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).
To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.
At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.
Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.
This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).
To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.
The Chancellor took significant steps in the Autumn Budget 2025 to support lower income families and improve living standards across the UK, including in Surrey Heath. These measures include:
• Removing the two-child limit in Universal Credit, which will mean the largest expected reduction in child poverty over a Parliament since comparable records began.
• In Surrey Heath, this change is estimated to benefit around 990 children.
• This is part of a wider package of welfare reforms and cost of living support, expanding free school meals and breakfast clubs, freezes rail fares and prescription charges, and raising the National Living Wage to £12.71 per hour from April 2026.
Families cannot exceed the limits within their Tax Free Childcare accounts because the system automatically restricts government top-ups once the cap for the 3 month period is reached. Families can still make payments to childcare providers from their account without the top-up.
Official statistics on Tax-Free Childcare are published quarterly and further details can be found at:
https://www.gov.uk/government/collections/tax-free-childcare-quarterly-statistics
Proposals to introduce new fees or charges are considered on a case-by-case basis. Government departments develop proposals in line with their needs and policy intent, underpinned by the rules in Managing Public Money (https://www.gov.uk/government/publications/managing-public-money).
Full cost recovery is the standard approach to the setting of fees and charges for public services.
If a department were to incorporate demand management as a policy objective when devising a fee or charging scheme, this would be considered as part of assessing the proposals.
There is excellence right across the country and this government is backing it: lifting living standards and putting more money in people’s pockets. The recent Budget announced that the government is taking around £150 on average off household energy bills, expanding the £150 Warm Home Discount to 6 million lower income households, freezing regulated rail fares and NHS prescription fees for one-year, and extending temporary 5p fuel duty cut until the end of August 2026.
These measures will help people across the country with the cost of living.
At Budget 2025, the Government announced a £1 billion asset efficiency target for departments to meet by 2030. The target will be met through a combination of asset disposals and new income generated from assets.
The Government announced a Strategic Asset Review in support of this target, which will be conducted ahead of the next spending review.
To further improve its management of the public sector balance sheet, at Budget 2025 the Government announced a Strategic Asset Review in support of the new £1 billion asset efficiency target. The Treasury will lead the review, which will be conducted ahead of the next spending review, and will engage with departments in due course.
The £2.8 billion efficiencies and savings represent 0.5% of departmental day-to-day budgets set at Spending Review 2025.
Efficiencies and savings achieved within the NHS will be reinvested to improve patient care, and the government will ensure it continues to meet existing NATO spending commitments.
The Valuation Office Agency are developing their approach to the targeted revaluation and will set out more details in due course, following the outcome of the Government's consultation.
At Autumn Budget 2025, the government announced £18 million for up to 200 children’s playgrounds in England. This funding will breathe new life into play areas, creating safe, exciting spaces for thousands of children.
The government will provide more detail on the approach to allocating and delivery of this funding shortly.
At Autumn Budget 2025, the government announced £18 million for up to 200 children’s playgrounds in England. This funding will breathe new life into play areas, creating safe, exciting spaces for thousands of children.
The government will provide more detail on the approach to allocating and delivery of this funding shortly.
At Autumn Budget 2025, the government announced £18 million for up to 200 children’s playgrounds in England. This funding will breathe new life into play areas, creating safe, exciting spaces for thousands of children.
The government will provide more detail on the approach to allocating and delivery of this funding shortly.
The existing excise regime is already well regulated, with HMRC operating several registration and approval schemes for those who deal in excise goods, for example the Alcohol Wholesaler Registration Scheme (AWRS), the Tobacco Trace and Trace system and the Registered Dealers in Controlled Oils (RDCO) scheme.
In 2024-25 HMRC secured £19.7bn in additional tax revenue from the largest and most complex businesses. This is money that would otherwise have gone unpaid.
I cannot comment on specific taxpayers or provide comment on individual businesses.
In reviewing a large business's tax affairs, HMRC will consider all relevant challenges, including loss-buying provisions where appropriate. HMRC is committed to ensuring everyone pays the right tax under the law, regardless of the size of business.
Since the introduction of full expensing, most businesses now claim first-year allowances, such as full expensing and the Annual Investment Allowance (AIA), to claim relief on their investments, with 99% of businesses investing under the AIA’s £1 million threshold. The government has maintained these key reliefs, as well as the low Corporation Tax main rate of 25%.
At Budget, the government announced that it is decreasing the main rate of writing-down allowance by 4ppt to 14% from April 2026. This change allows us to fully fund a new 40% first-year allowance (FYA) while also raising revenue to protect the public finances. This new FYA will allow businesses to deduct much of the cost of their investment in the year they make that investment and lower their tax bill. It will be available for assets bought for leasing and for unincorporated businesses, which do not benefit from full expensing, and broadly preserves the current incentives to invest.
For future investment, the present value and cost of capital for businesses that claim the new first-year allowance remains broadly the same. The expected impacts of this measure, included the equalities impacts, are set out on gov.uk. There are no disproportionate impacts expected on women-led businesses or other protected groups as a result of this measure:
Capital allowances: new first-year allowance and reducing main rate writing-down allowances - GOV.UK
Since the introduction of full expensing, most businesses now claim first-year allowances, such as full expensing and the Annual Investment Allowance (AIA), to claim relief on their investments, with 99% of businesses investing under the AIA’s £1 million threshold. The government has maintained these key reliefs, as well as the low Corporation Tax main rate of 25%.
At Budget, the government announced that it is decreasing the main rate of writing-down allowance by 4ppt to 14% from April 2026. This change allows us to fully fund a new 40% first-year allowance (FYA) while also raising revenue to protect the public finances. This new FYA will allow businesses to deduct much of the cost of their investment in the year they make that investment and lower their tax bill. It will be available for assets bought for leasing and for unincorporated businesses, which do not benefit from full expensing, and broadly preserves the current incentives to invest.
For future investment, the present value and cost of capital for businesses that claim the new first-year allowance remains broadly the same. The expected impacts of this measure, included the equalities impacts, are set out on gov.uk. There are no disproportionate impacts expected on women-led businesses or other protected groups as a result of this measure:
Capital allowances: new first-year allowance and reducing main rate writing-down allowances - GOV.UK
Since the introduction of full expensing, most businesses now claim first-year allowances, such as full expensing and the Annual Investment Allowance (AIA), to claim relief on their investments, with 99% of businesses investing under the AIA’s £1 million threshold. The government has maintained these key reliefs, as well as the low Corporation Tax main rate of 25%.
At Budget, the government announced that it is decreasing the main rate of writing-down allowance by 4ppt to 14% from April 2026. This change allows us to fully fund a new 40% first-year allowance (FYA) while also raising revenue to protect the public finances. This new FYA will allow businesses to deduct much of the cost of their investment in the year they make that investment and lower their tax bill. It will be available for assets bought for leasing and for unincorporated businesses, which do not benefit from full expensing, and broadly preserves the current incentives to invest.
For future investment, the present value and cost of capital for businesses that claim the new first-year allowance remains broadly the same. The expected impacts of this measure, included the equalities impacts, are set out on gov.uk. There are no disproportionate impacts expected on women-led businesses or other protected groups as a result of this measure:
Capital allowances: new first-year allowance and reducing main rate writing-down allowances - GOV.UK
The second homes and empty homes premiums will not affect the calculation of the High Value Council Tax Surcharge liability.
Properties will be revalued every 5 years and banding thresholds will be kept under review alongside the revaluations.
The High Value Council Tax Surcharge levies a new charge on owners of residential property in England worth £2 million or more. The Government will consult on exemptions, reliefs, and the detail of a support scheme for those who struggle to pay the charge in the New Year.
Vehicle Excise Duty is a tax on vehicles used or kept on public roads. For certain vehicle classifications, VED liability is partially calculated in accordance with the vehicle’s weight, reflecting the greater road damage caused by heavier vehicles. For example, Heavy Goods Vehicle (HGV) VED rates are set based on a vehicle’s weight, suspension and trailer.
The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.
GOV.UK One Login is the single sign-in and identity checking solution enabling citizens to access digital government services. Over time it will replace all other sign-in methods on GOV.UK including Government Gateway.
Whilst HMRC will serve most of its customers and their intermediaries through its digital services, it will also provide targeted support so customers can access HMRC’s knowledgeable advisers in circumstances where they need that support to get their tax affairs right.
HMRC wants to encourage as many of its customers as possible to use available digital channels, but in many cases, customers have the option of using a paper form or an agent. Where the use of digital channels is required for some customers, as with Making Tax Digital, customers can apply for an exemption from these rules when it is not reasonably practicable for them to access or use digital services.
I refer the member to the answer given to UIN 95354 on 04 December 2025
Non-structural tax reliefs - GOV.UK
Forecasting the economy, including the effect of Government policy decisions on inflation, is the responsibility of the independent Office for Budget Responsibility (OBR). The OBR set out the impact of policy measures on inflation in its Autumn Budget 2025 forecast, including the rise in tobacco duty. The OBR have not adjusted their inflation forecast for the rise in tobacco duty.
The Chancellor asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions support stability and long-term growth. Considering all policies, the OBR expect budget measures to reduce CPI inflation by 0.4pp in 2026/27.
The Office for National Statistics, regulated by the UK Statistics Authority, produces a range of inflation statistics. The most widely used estimates of inflation, both by Government and the private sector, are the Consumer Prices Index and the Retail Prices Index (RPI).
Alcohol duty, like many other taxes expressed in cash terms, is indexed to RPI.
On the wider considerations about the extent to which RPI is embedded in the UK's economic and legal system, I refer the Hon. Member to the answer given on 13 November 2025 to PQ UIN 88538.
At Autumn Budget 2024, the Government renewed the commitment to a tobacco duty escalator, which increases duty by 2 percent above RPI inflation at each Budget, until the end of the current Parliament. At Autumn Budget 2025, the duty on all tobacco products was increased in line with this commitment. The government also confirmed further increases of 2% above RPI plus an additional £2.20 per 100 cigarettes and per 50g of other tobacco products to take effect from 1 October 2026, alongside the introduction of Vaping Duty. This is part of the Government’s focus on health prevention and to continue our drive to reduce smoking prevalence.
The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.
The government is committed to enabling investment so that airports can play their full role in the growth mission.
Properties seeing large bill increases as a result of the business rates revaluation - including airports - will benefit from a redesigned transitional relief scheme worth £3.2 billion over the next 3 years. Compared to the 2023 transitional relief scheme, the redesigned scheme will provide more generous support for large properties.
The Government has also published a Call for Evidence exploring concerns that airports and a small number of other ratepayers have raised around the ‘Receipts & Expenditure’ valuation methodology and its impacts on long-term, high value investments. Through this call for evidence, we will seek to address issues raised ahead of the 2029 revaluation.