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
Green Party
Adrian Ramsay (Green - Waveney Valley)Green Spokesperson (Treasury)
Liberal Democrat
Charlie Maynard (LD - Witney)Liberal Democrat Spokesperson (Chief Secretary to the Treasury)
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
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
Lord Livermore (Lab - Life peer)Financial Secretary (HM Treasury)
James Murray (LAB - Ealing North)
Chief Secretary to the Treasury
Lord Stockwood (Lab - Life peer)
Minister of State (HM Treasury)
Parliamentary Under-Secretaries of State
Torsten Bell (Lab - Swansea West)Parliamentary Secretary (HM Treasury)
Dan Tomlinson (Lab - Chipping Barnet)
Exchequer Secretary (HM Treasury)
Lucy Rigby (Lab - Northampton North)
Economic Secretary (HM Treasury)
14:02
Written Evidence
This inquiry will examine quantitative tightening, including its impact on the economy and its fiscal costs. It will also investigate …
To ask His Majesty's Government how much they collected through the Apprenticeship Levy in financial years (1) 2024-25, and (2) …
This Order amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (“the Regulated Activities Order”). …
A Bill to Make provision to amend section 4 of the Social Security Contributions and Benefits Act 1992, and section …
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 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.
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).
(22,078 in the last 7 days)
(11,710 in the last 7 days)
(4,055 in the last 7 days)
(1,962 in the last 7 days)
(878 in the last 7 days)
(22,078 in the last 7 days)
(1,962 in the last 7 days)
(4,055 in the last 7 days)
(101 in the last 7 days)
(121 in the last 7 days)
Petition Closed
Raise the income tax personal allowance from £12,570 to £20,000
Gov Responded - 20 Feb 2025 Debated on - 12 May 2025closed 7 months, 2 weeks ago
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 8 months, 3 weeks 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.
Petition Closed
Don't apply VAT to independent school fees, or remove business rates relief.
Gov Responded - 20 Dec 2024 Debated on - 3 Mar 2025closed 8 months ago
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 28th October 2024
Treasury Committee Member since 28th October 2024
Treasury Committee Member since 9th December 2024
Treasury Committee Member since 27th October 2025
Treasury Committee Member since 27th October 2025
Treasury Committee Member since 27th October 2025
Treasury Committee: Upcoming Events
Work of the Payment Systems Regulator
4 Feb 2026, 2 p.m.
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Treasury Committee - Private Meeting
9 Feb 2026, 2 p.m.
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Treasury Committee - Oral evidence
Work of HM Treasury
11 Feb 2026, 9:30 a.m.
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Treasury Committee - Oral evidence
Work of HM Treasury
11 Feb 2026, 2 p.m.
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Treasury Committee: 14 Current Inquiries
Treasury Committee: Previous Inquiries
50 most recent Written Questions
(View all written questions)Rail infrastructure projects are carefully considered to assess their value for money. This includes consideration of strategic, economic, social and environmental factors, the local context and regional distribution of projects, as well as affordability and the government’s wider fiscal position.
Chief Secretary to the Treasury
Apprenticeship receipts in 2024-25 were £4,100 million. Full year figures for 2025-26 will not be available until the end of the 2025-26 tax year.
The apprenticeship budget funds all apprenticeship training in England, covering both existing and new apprenticeships, across all employers. The English apprenticeship budget in the 2024-25 financial year was £2,769 million. This increased to £3,075 million in the 2025-26 financial year at mains estimates, any further updates will be reflected at supplementary estimates. As announced by the Prime Minister in September, responsibility for apprenticeships has now transferred to the Department for Work and Pensions, and from 2026‑27 apprenticeships funding will be part of its budget.
While the Apprenticeship Levy is UK-wide, apprenticeship policy and spending are devolved. This means the devolved governments receive Barnett consequentials on apprenticeship spending in England through the Barnett formula. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investment in their own skills programmes, and they are accountable to their respective legislatures for those decisions.
Financial Secretary (HM Treasury)
HM Treasury, which includes NISTA, publishes aggregate information on PFI and PF2 projects annually.
In line with guidance, any arrangements which necessitate the underlying asset remaining in the ownership of the PFI contractor at the end of the contract would be the exception. Information on such cases is not collated centrally by HM Treasury.
Chief Secretary to the Treasury
Any Barnett consequentials for the Northern Ireland Executive resulting from policy changes will be confirmed at the relevant fiscal event.
Chief Secretary to the Treasury
The Valuation Office Agency offers in excess of 400 internal training opportunities in relation to council tax and non-domestic rating.
Exchequer Secretary (HM Treasury)
The National Wealth Fund does not operate a salary sacrifice scheme in respect of its Defined Contribution staff pension offering. Details of the National Wealth Fund’s pension offering are set out in the Remuneration Report within its Annual Report and Accounts, which can be accessed here: https://www.nationalwealthfund.org.uk/media/wpxnswqx/e03371942_nwf-ara-24-25_accessible_2.pdf
Parliamentary Secretary (HM Treasury)
The table below provides the turnover rate, based on average Full Time Equivalent (FTE), for each year from 2021/22. Staff data is retained only for as long as it is required to meet its intended business purpose, after which it is securely deleted in line with HMRC’s data retention policy. The number of leavers includes staff leaving HMRC, moves to other Customer Compliance Group (CCG) directorates, moves outside of CCG and leavers within Wealthy and Mid-sized Business Compliance (WMBC). Tax year 21/22 includes moves to COVID schemes, whilst 24/25 included moves to other teams in Wealthy and Mid-sized Business Compliance, working on wealthy related risk.
Tax Year | Total Leavers | Average FTE over year | Turnover rate |
2021/22 | 258 | 856 | 30% |
2022/23 | 156 | 951 | 16% |
2023/24 | 131 | 988 | 13% |
2024/25 | 166 | 898 | 18% |
Exchequer Secretary (HM Treasury)
Angus MacDonald
(Liberal Democrat - Inverness, Skye and West Ross-shire)
The High Income Child Benefit Charge (HICBC) applies to Child Benefit recipients, or their partner, who has an adjusted net income of £60,000 or more. An individual’s adjusted net income is their total taxable income before any Personal Allowances and less certain tax reliefs.
The HICBC threshold was increased to £60,000 in April 2024, which took 170,000 families out of paying this tax charge in 2024/25. The point at which Child Benefit is fully withdrawn was also raised to £80,000. The HICBC threshold was £50,000 prior to 6 April 2024.
The adjusted net income threshold of £60,000 ensures the Government supports the majority of Child Benefit claimants, whilst keeping welfare expenditure sustainable.
HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. In the Autumn Budget 2024, the Chancellor announced that there are no current plans to change to a system where HICBC is calculated on a household income basis, as it is estimated this would cost up to £1.4 billion or would require some families currently in receipt of Child Benefit and outside the scope of the tax charge to lose out.
As with all elements of tax policy the Government keeps HICBC under review as part of its Budget process.
Exchequer Secretary (HM Treasury)
Angus MacDonald
(Liberal Democrat - Inverness, Skye and West Ross-shire)
The High Income Child Benefit Charge (HICBC) applies to Child Benefit recipients, or their partner, who has an adjusted net income of £60,000 or more. An individual’s adjusted net income is their total taxable income before any Personal Allowances and less certain tax reliefs.
The HICBC threshold was increased to £60,000 in April 2024, which took 170,000 families out of paying this tax charge in 2024/25. The point at which Child Benefit is fully withdrawn was also raised to £80,000. The HICBC threshold was £50,000 prior to 6 April 2024.
The adjusted net income threshold of £60,000 ensures the Government supports the majority of Child Benefit claimants, whilst keeping welfare expenditure sustainable.
HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. In the Autumn Budget 2024, the Chancellor announced that there are no current plans to change to a system where HICBC is calculated on a household income basis, as it is estimated this would cost up to £1.4 billion or would require some families currently in receipt of Child Benefit and outside the scope of the tax charge to lose out.
As with all elements of tax policy the Government keeps HICBC under review as part of its Budget process.
Exchequer Secretary (HM Treasury)
The Valuation Office Agency requested trading information from approximately 37,000 public houses for the 2026 Revaluation.
Exchequer Secretary (HM Treasury)
HM Treasury ministers and officials engage regularly with the Northern Ireland Executive.
Childminders play a vital role in childcare. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.
Only a small proportion of childminders with qualifying income over £50,000 will be mandated into Making Tax Digital (MTD) for Income tax from April 2026. The government will monitor the impact of Making Tax Digital (MTD) for Income tax on childminders and other home-based childcare providers in the same way as it will for all sole traders moving to MTD for Income Tax.
Childminders can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.
Exchequer Secretary (HM Treasury)
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs (electric vehicles) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. As with VED, eVED will apply to UK-registered vehicles; non-UK registered vehicles will be required to register for eVED after a period of six months in the UK.
The Government has ruled out charging tax based on when or where people drive to protect motorists’ privacy. This means non-UK mileage driven by UK registered cars will fall into scope of eVED, as with fuel duty, which does not vary by basis of where a car is driven.
Exchequer Secretary (HM Treasury)
Manuela Perteghella
(Liberal Democrat - Stratford-on-Avon)
The Government recognises the important role charities play in our society and has made it a priority to reset the relationship with civil society by developing the Civil Society Covenant.
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer National Insurance contributions. The TIIN set out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, civil society organisations, as well as an overview of the equality impacts.
The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), which set out a detailed forecast of the economy and public finances.
Exchequer Secretary (HM Treasury)
Revenue estimates from, and individuals impacted by frozen thresholds are set out by the Office for Budget Responsibility in Table A of their November 2025 Economic and fiscal outlook, and Table 3.19 of the detailed forecast table of receipts:
Office for Budget Responsibility – Economic and fiscal outlook – November 2025
Office for Budget Responsibility - Economic and fiscal outlook detailed forecast tables: receipts
Those whose sole income is the basic or full new State Pension without any increments will not pay any income tax in 2026/27.
Parliamentary Secretary (HM Treasury)
Revenue estimates from, and individuals impacted by frozen thresholds are set out by the Office for Budget Responsibility in Table A of their November 2025 Economic and fiscal outlook, and Table 3.19 of the detailed forecast table of receipts:
Office for Budget Responsibility – Economic and fiscal outlook – November 2025
Office for Budget Responsibility - Economic and fiscal outlook detailed forecast tables: receipts
Those whose sole income is the basic or full new State Pension without any increments will not pay any income tax in 2026/27.
Parliamentary Secretary (HM Treasury)
Revenue estimates from, and individuals impacted by frozen thresholds are set out by the Office for Budget Responsibility in Table A of their November 2025 Economic and fiscal outlook, and Table 3.19 of the detailed forecast table of receipts:
Office for Budget Responsibility – Economic and fiscal outlook – November 2025
Office for Budget Responsibility - Economic and fiscal outlook detailed forecast tables: receipts
Those whose sole income is the basic or full new State Pension without any increments will not pay any income tax in 2026/27.
Parliamentary Secretary (HM Treasury)
Revenue estimates from, and individuals impacted by frozen thresholds are set out by the Office for Budget Responsibility in Table A of their November 2025 Economic and fiscal outlook, and Table 3.19 of the detailed forecast table of receipts:
Office for Budget Responsibility – Economic and fiscal outlook – November 2025
Office for Budget Responsibility - Economic and fiscal outlook detailed forecast tables: receipts
Those whose sole income is the basic or full new State Pension without any increments will not pay any income tax in 2026/27.
Parliamentary Secretary (HM Treasury)
It is a key priority for this Government to ease pressures on the cost of living. We remain firmly committed to protecting the most vulnerable pensioners and ensuring financial security in retirement.
The State Pension will remain the foundation of retirement income . In line with the Government’s commitment to the Triple Lock for the duration of this parliament, over 12 million pensioners will benefit from a 4.8% increase to their basic or new State Pension in April 2026, worth up to £575 a year. This follows a substantial increase in 2025/26, when those on the full new State Pension received a £360 boost.
Furthermore, the Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament. At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details next year.
The Pension Credit Standard Minimum Guarantee will also increase by 4.8% in April 2026, from £227.10 to £238 a week for single pensioners and from £346.60 to £363.25 for couples, protecting the poorest pensioners. Over three quarters of pensioners will benefit from the Winter Fuel Payment for the duration of this Parliament, targeting help at those on lower and middle incomes while ensuring fairness for taxpayers.
Pensioners also benefit from free eye tests, NHS prescriptions and bus passes, and some may qualify for means tested benefits such as Housing Benefit and Cold Weather Payments.
Parliamentary Secretary (HM Treasury)
Pensioners whose sole income is the basic or new State Pension without any increments will not pay income tax in 2026-27.
At Budget 2025, the Government announced that it will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28.
The Government will set out more detail in due course.
Parliamentary Secretary (HM Treasury)
The Government is making fair and necessary choices on tax so it can deliver on the public’s priorities. Everyone is being asked to contribute to support these goals, but the Government is keeping the contribution as low as possible by pursuing a programme of reform to fix longstanding issues in the tax system – modernising it, and addressing unequal and unfair treatment, while ensuring the wealthiest contribute more.
Chief Secretary to the Treasury
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs, which is available online at: https://www.gov.uk/government/publications/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl. The TIIN set 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.
The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO) in November 2025, which sets out a detailed forecast of the economy and public finances. The OBR expects 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 committed to supporting young people to earn and learn; that is why we are making more than £1.5 billion available over the Spending Review period for investment in employment and skills support. This includes £820 million for the Youth Guarantee, which features a new Jobs Guarantee that will provide six-month paid work placements for eligible 18- to 21-year-olds, and £725 million for the Growth and Skills Levy, to help support apprenticeships for young people and fully fund SME apprenticeships for eligible people under-25. This support will provide an opportunity for young people to gain the essential skills and experience they need and prevent the damaging effects of long-term unemployment.
Financial Secretary (HM Treasury)
The correspondence from the hon. Member for East Londonderry was transferred from HM Treasury to HMRC. HMRC responded on 2 February.
Exchequer Secretary (HM Treasury)
The Breathing Space Scheme was launched in May 2021 to give those in problem debt the space to engage with professional debt advice by providing a temporary relief from creditor enforcement action.
The scheme guidance for creditors sets out their responsibilities when a debtor enters a breathing space and makes clear that, upon being notified, creditors must stop all enforcement action, pause contact with the debtor, and freeze most interest and charges for the duration of the breathing space.
Where a creditor does not comply with the terms of the breathing space, any enforcement action they take is not valid and they may be liable for the debtor’s costs. The debt adviser will also notify the Insolvency Service which administers the scheme, so that the creditor can be reminded of their obligations. Debtors are also able to go through their creditor’s formal complaints procedure and, if relevant, escalate to the appropriate ombudsman or oversight body.
Councils are responsible for the collection of a broad range of debts and are required to recover all debts in accordance with the law.
Economic Secretary (HM Treasury)
I refer the hon. Member to the answer given in UIN 104727.
Exchequer Secretary (HM Treasury)
The Government recognises the vital role that the ports sector plays in supporting the government’s objectives on transport and infrastructure.
At the Budget in November 2025, the Government announced it would legislate to remove the Landfill Tax exemption for stabilisers used in dredged material from April 2027.
This decision followed a consultation on reforms to Landfill Tax during which the government engaged with a range of stakeholders, including representatives from the ports sector. This decision will not prevent the use of stabilisers, but it will encourage businesses to limit their use to what is necessary.
The Government does not expect the change to have a significant impact on flood risk management as most material removed during routine waterway maintenance of rivers and canals is reused locally and deposited adjacent to the channel, avoiding the need for disposal at landfill sites.
Financial Secretary (HM Treasury)
The Government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.
HM Treasury works closely with the UK financial regulators to monitor evolving risks from new technologies, and ensure that the opportunities AI presents can be realised in a safe and responsible way.
Stress testing is a key tool the Bank use to ensure the financial system is sufficiently resilient to a wide range of potential scenarios. The Bank intends to consider the macroeconomic and core financial market consequences of AI adoption under various scenarios. This will enable it to form a view on the range of outcomes that need to be encompassed by future stress tests, in order to capture the potential severe but plausible risks associated with the range of potential AI outcomes.
Financial Secretary (HM Treasury)
We are aware of changes to the EU’s rules of low-value imports and the announcement in December 2025 of its intention to introduce a handling fee on consumer parcels from November 2026.
At the Budget in November 2025, the Chancellor also announced the removal of the UK's relief from customs duty on goods below £135 from March 2029 at the latest. There is currently a consultation on these changes that closes on 6th March 2026.
We are committed to ensuring that the current facilitations available for parcels under the Windsor Framework continue to operate. The EU has not yet published their full legislation in relation to the handling fee and therefore an assessment cannot be made. The Government is, however, engaging closely with the EU with regard to their announcements.
The Government continues to engage with industry and the EU to ensure any applicable arrangements are implemented correctly and to minimise any negative impacts on Northern Ireland consumers and businesses.
Financial Secretary (HM Treasury)
The Government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.
HM Treasury works closely with the UK financial regulators to monitor evolving risks from new technologies, and ensure that the opportunities AI presents can be realised in a safe and responsible way.
Financial Secretary (HM Treasury)
The government has delivered an ambitious programme of reforms that build on the UK market’s strong foundations. Recent changes, including overhauling the Prospectus and Listing regimes, have made it easier for firms to list and raise capital on UK markets.
And at the Budget in November 2025, the Chancellor went further by introducing a three-year UK Listing Relief, supporting firms to achieve higher valuations at IPO and improving their long-term growth prospects.
Financial Secretary (HM Treasury)
The government is undertaking a range of activities to ensure those needing to use Making Tax Digital (MTD) for Income Tax from April 2026 are ready and able to do so successfully.
This includes media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD‑compatible products is available, including free options.
MTD quarterly updates are not like making a tax return each quarter. Software will manage much of the process, creating simple summaries of income and expenses from the taxpayer’s digital records ready for submission.
Information provided within the quarterly updates will be carried forward to the tax return, helping to reduce errors and make the end of year process faster and easier.
Financial Secretary (HM Treasury)
As announced at Budget 2025, the government is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future. The government recognises that refineries play a role in energy security and the UK’s industrial base. Government Ministers are holding a roundtable with the refining sector this month and will also publish a call for evidence on the fuel sector shortly.
Exchequer Secretary (HM Treasury)
As announced at Budget 2025, the government is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future. The government recognises that refineries play a role in energy security and the UK’s industrial base. Government Ministers are holding a roundtable with the refining sector this month and will also publish a call for evidence on the fuel sector shortly.
Exchequer Secretary (HM Treasury)
The government is committed to maintaining an ambitious carbon pricing scheme to ensure that polluters continue to pay for their emissions. The UK Emissions Trading Scheme is our key lever to do so. This supports a cost-efficient transition toward net zero.
In July 2025, the UK Emissions Trading Scheme Authority confirmed an expansion to emissions from domestic maritime regime, commencing on 1 July 2026.
The UK does not hypothecate revenue from the UK ETS. All receipts from the UK ETS accrue to the consolidated fund, and go to funding government priorities, which includes decarbonisation support for the maritime sector.
Exchequer Secretary (HM Treasury)
Exchequer Secretary (HM Treasury)
The Government engages regularly with a wide range of external organisations, including the Resolution Foundation, to inform and strengthen the policymaking process.
In the lead‑up to each Budget, HM Treasury operates the Budget representation portal, through which individuals, interest groups, and representative bodies can submit written representations directly to the Treasury. These submissions allow stakeholders to comment on existing government policies and propose new policy ideas for consideration in the forthcoming Budget. This engagement provides valuable evidence and insights on a variety of issues, including the taxation of self‑employment.
As evidenced at Budget 2025, the Government is making fair and necessary choices on tax so it can deliver on the public’s priorities. Everyone is being asked to contribute to support these goals, but the government is keeping the contribution as low as possible by pursuing a programme of reform to fix longstanding issues in the tax system – modernising it, and addressing unequal and unfair treatment, while ensuring the wealthiest contribute more.
Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by retail and hospitality businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
HMRC estimates that the cost of reducing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services would be as follows in 2026-27: (a) to 15%: £5 billion, (b) to 12.5%: £8 billion (c) to 10%: £10.5 billion, (d) to 5%: £17 billion, (e) to 0%: £23.5 billion. Including retail would add to that significant cost.
Exchequer Secretary (HM Treasury)
The Valuation Office Agency uses Value Significant Codes for council tax valuations to indicate specific features that are likely to affect the value of a property either positively or negatively.
Exchequer Secretary (HM Treasury)
The table below shows the compliance yield attributed to the wealthy customer group, which includes yield generated by HMRCs Wealthy Team. HMRC does not hold the figures for 2017-18. We have provided details from the earliest period available in the table below:-
Annual Report figures | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
Compliance Yield (£m) | 1,800 | 2,200 | 3,000 | 2,500 | 4,000 | 5,200 | 3,700 |
Compliance yield for the wealthy population can fluctuate year on year because it can be impacted by the nature of the work and risks being settled as well as the settlement of a small number of complex, high value cases and litigation outcomes. Complex cases can take time to work through which can lead to yearly fluctuations.
Exchequer Secretary (HM Treasury)
This Government is proud to have been able to significantly expand the generosity of Draught Relief this parliament, in recognition of the economic and cultural importance of pubs, and the wider “on trade”.
In February 2025, the Chancellor delivered a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint and reduced overall duty receipts by £85m. Draught beer and cider now pay 13.9% less in tax than their packaged equivalents.
The Government keeps duty rates under review, and the Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the on trade sector on the effectiveness of Draught Relief in advance of the Budget.
Exchequer Secretary (HM Treasury)
The Government announced investment at the Budget in October 2024 and the Spring Statement in March 2025 to enable HMRC to recruit and retain 2,400 debt management officers in addition to growing by 5,500 compliance officers by 2029-30, with further funding for the former announced at the Budget in November 2025.
This funding means that HMRC will retain 1,200 current Debt Management staff, who would have moved onto other roles, to focus on debt collection activity until the end of 2029-30 and will grow its workforce by 1,200 more people over this period. The majority of new recruits are funded from 2026-27, and all additional staff will be in position by 2028-29.
HMRC is already well underway in recruiting 5,500 additional compliance officers who will join by the end of the decade. HMRC is welcoming around 2,000 total compliance officers each financial year, which includes baseline recruitment, an approximate 1,000 additional compliance officers funded by Government investment, and also accounts for anticipated attrition.
Since November 2024, over 1,500 additional compliance officers have joined HMRC’s Customer Compliance Group (CCG).
Exchequer Secretary (HM Treasury)
The Government announced investment at the Budget in October 2024 and the Spring Statement in March 2025 to enable HMRC to recruit and retain 2,400 debt management officers in addition to growing by 5,500 compliance officers by 2029-30, with further funding for the former announced at the Budget in November 2025.
This funding means that HMRC will retain 1,200 current Debt Management staff, who would have moved onto other roles, to focus on debt collection activity until the end of 2029-30 and will grow its workforce by 1,200 more people over this period. The majority of new recruits are funded from 2026-27, and all additional staff will be in position by 2028-29.
HMRC is already well underway in recruiting 5,500 additional compliance officers who will join by the end of the decade. HMRC is welcoming around 2,000 total compliance officers each financial year, which includes baseline recruitment, an approximate 1,000 additional compliance officers funded by Government investment, and also accounts for anticipated attrition.
Since November 2024, over 1,500 additional compliance officers have joined HMRC’s Customer Compliance Group (CCG).
Exchequer Secretary (HM Treasury)
The criteria for determining special category codes for pubs and bars is published in the Valuation of Public Houses Approved Guide 2023. Guide_to_Public_Houses.pdf
Exchequer Secretary (HM Treasury)
The Government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £1 billion per year, and will benefit over 750,000 properties.
We are paying for this through higher rates on the top one per cent of most expensive properties. This includes many large distribution warehouses, such as those used by online giants. The high value multiplier is 33% more than the multiplier for small RHL properties.
Exchequer Secretary (HM Treasury)
At the Budget, the VOA announced updated property values from the 2026 revaluation. This has led to increases in rateable values for some properties, as current values are based on pandemic-era valuations.
In recognition of the impact of the revaluation on bills, the Government introduced a support package worth £4.3 billion, to protect against ratepayers seeing large overnight increases in bills.
At Budget, the Government announced wider reforms to business rates for retail, hospitality and leisure (RHL) properties, reducing tax rates paid for by a higher rate on the top one per cent of most expensive properties.
The introduction of permanent, lower RHL tax rates is worth almost £1 billion to over 750,000 RHL properties. The tax rate on smaller high street businesses will be 25% lower than for businesses with the most valuable 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.
This includes community pharmacies with rateable values below £500,000 that are open to members of the public. Further details on what is meant by “visiting members of the public” can be found online here: https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure.
Exchequer Secretary (HM Treasury)
At the Budget, the VOA announced updated property values from the 2026 revaluation. This has led to increases in rateable values for some properties, as current values are based on pandemic-era valuations.
In recognition of the impact of the revaluation on bills, the Government introduced a support package worth £4.3 billion, to protect against ratepayers seeing large overnight increases in bills.
At Budget, the Government announced wider reforms to business rates for retail, hospitality and leisure (RHL) properties, reducing tax rates paid for by a higher rate on the top one per cent of most expensive properties.
The introduction of permanent, lower RHL tax rates is worth almost £1 billion to over 750,000 RHL properties. The tax rate on smaller high street businesses will be 25% lower than for businesses with the most valuable 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.
This includes community pharmacies with rateable values below £500,000 that are open to members of the public. Further details on what is meant by “visiting members of the public” can be found online here: https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure.
Exchequer Secretary (HM Treasury)
The Valuation Office Agency will close from 1 April 2026 with all colleagues transferring into HMRC. Colleagues will transfer under the Cabinet Office Statement of Practice (COSoP) with which HMRC and the VOA have complied in full.
All contractual terms currently held by colleagues working for the VOA have been protected as a matter of principle during this process and will be honoured in full on transfer to HMRC.
HMRC and VOA have consulted with VOA’s recognised Trade Unions during the COSoP process to ensure that meaningful engagement and discussion has taken place concerning all matters relating to the transfer.
Exchequer Secretary (HM Treasury)
Wealthy tax gap estimates are published in Measuring the Tax Gap 2025 for 2005-06 to 2023-24. There are no estimates for 2024-25 at this time, these will be published in future tax gap publications.
We use Income Tax, Capital Gains Tax (CGT) and National Insurance Contributions (NICs) data in our estimate of the Self-Assessment (SA) wealthy tax gap. It is not possible to separately estimate the CGT share within this tax gap. We are therefore unable to provide the details for CGT.
The overall wealthy tax gap, detailed in Chapter 1 Figure 1.4 of MTG25 and Table 1.4 of the online tables, breaks down as follows:
(£ billion) | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 |
Self-Assessment | 1.43 | 1.35 | 1.34 | 1.23 | 1.67 | 1.78 | 1.95 |
Inheritance Tax | 0.20 | 0.19 | 0.19 | 0.10 | 0.20 | 0.12 | 0.15 |
Stamp Duties | 0.02 | 0.05 | 0.05 | 0.04 | 0.04 | 0.05 | 0.04 |
Net Gap | 1.65 | 1.59 | 1.58 | 1.37 | 1.92 | 1.95 | 2.13 |
Or as a percentage share of the overall wealthy tax gap:
(£ billion) | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 |
Self-Assessment | 86.7% | 85.0% | 84.7% | 90.0% | 87.2% | 91.6% | 91.3% |
Inheritance Tax | 11.9% | 12.1% | 12.1% | 7.1% | 10.5% | 6.0% | 6.9% |
Stamp Duties | 1.4% | 2.9% | 3.2% | 2.9% | 2.3% | 2.4% | 1.7% |
Exchequer Secretary (HM Treasury)
If a company or a group's annual profits exceed £1.5 million, they will be classed as ‘large’ and will be required to pay their Corporation Tax in quarterly instalments. This long-standing regime ensures that larger companies pay their Corporation Tax bill closer to the point at which they make a profit, which is in line with other G7 countries.
Companies must self-assess whether they are in the regime and pay accordingly. Where liabilities may be difficult to predict, including from capital gains, companies should make their best estimate of instalment payments based on the information available at the time. Payments can be adjusted up or down as the final liability becomes clearer, and if they prove to be excessive a repayment can be claimed.
As always for late paid tax, interest is charged to reflect the time value of money. Recognising the estimated nature of the instalments, special rates of interest apply which charge less for late payment, and pay more for overpayment, than the normal rates.
The Government keeps the impact of the quarterly instalment payment regime, including associated interest rules, under review.
Exchequer Secretary (HM Treasury)
If a company or a group's annual profits exceed £1.5 million, they will be classed as ‘large’ and will be required to pay their Corporation Tax in quarterly instalments. This long-standing regime ensures that larger companies pay their Corporation Tax bill closer to the point at which they make a profit, which is in line with other G7 countries.
Companies must self-assess whether they are in the regime and pay accordingly. Where liabilities may be difficult to predict, including from capital gains, companies should make their best estimate of instalment payments based on the information available at the time. Payments can be adjusted up or down as the final liability becomes clearer, and if they prove to be excessive a repayment can be claimed.
As always for late paid tax, interest is charged to reflect the time value of money. Recognising the estimated nature of the instalments, special rates of interest apply which charge less for late payment, and pay more for overpayment, than the normal rates.
The Government keeps the impact of the quarterly instalment payment regime, including associated interest rules, under review.
Exchequer Secretary (HM Treasury)