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.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. This includes zoos and aquariums with rateable values below £500,000 that are open to members of the public. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.
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.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. This includes zoos and aquariums with rateable values below £500,000 that are open to members of the public. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.
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.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. This includes zoos and aquariums with rateable values below £500,000 that are open to members of the public. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.
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.
In October 2024, the Government laid a statutory instrument defining the retail, hospitality and leisure (RHL) properties that will be eligible for new, lower business rates multipliers from April 2026.
Since they were announced at Budget 2024, the Government has been clear that scope of the RHL multipliers would broadly reflect the scope of the current RHL relief. The previous Government made the decision to exclude betting shops from the relief. This Government considered the issue in the round, and decided to continue the treatment the previous Government chose to ensure the tax cut is appropriately targeted.
Statistics on changes in the rateable value of non-domestic properties as a result of the 2026 Revaluation and publication of the draft 2026 Rating List are published here: Change in rateable value of rating lists, 2026 Revaluation.
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.
HM Treasury has not spent any money on X or xAI since July 2024.
The majority of pensioners paid tax under the previous Government, with 8.3 million taxpayers over state pension age in 2024/2025.
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 in due course.
At the Budget last year, the Chancellor announced that the Chief Secretary to the Treasury will lead a review of value for money across government spending. The recommendations from this review will then be considered at the next Spending Review.
A further announcement was made on the 19th January, outlining the four key areas of focus and how a review into each will work. This includes drawing on expertise from across the public and private sector.
The UK and devolved governments have regular discussions about changes to the allocation of funding across the UK, including on reserved matters.
The UK Government remains committed to ensuring that funding across the UK is allocated in line with the Statement of Funding Policy.
Any Barnett consequentials for the Northern Ireland Executive resulting from changes to business rates revenues in England will be confirmed when business rates forecasts change at the relevant fiscal event.
This relief will be awarded to pubs and live music venues at the discretion of Local Authorities, who will determine eligibility using guidance published by the Government and based on existing definitions.
The Valuation Office Agency’s Valuation Operating System for Council Tax replaces multiple existing tools with a single case management system. This includes a mapping tool which utilises publicly available geographical data and government records to support Council Tax work.
The Valuation Office Agency (VOA) provides valuation data and analysis on the property market to MHCLG and HMT.
As part of its official statistics, the Valuation Office Agency (VOA) publishes the number of hereditaments by Special Category Code and local authority. The percentage change in RV is also published by Special Category Code and by Local/Unitary authority separately.
This relief will be awarded to pubs and live music venues at the discretion of Local Authorities, who will determine eligibility using guidance published by the Government and based on existing definitions.
Information about the Valuation Office Agency’s Valuation Operating System for Council Tax can be found on Contracts Finder.
At Budget 2025, the government announced a package of changes to gambling duties which will raise over £1 billion per year to support the public finances and forms part of our ambition to create a fair, modern and sustainable tax system.
Evidence shows that online slots and casino games have much higher proportions of problem gamblers. In recognition of this associated level of harm, the rate for Remote Gaming Duty will increase from 21% to 40% on 1 April 2026. The objective is to reduce the incentive for gambling operators to invest in or push people towards these more harmful forms of gambling.
The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.
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.
To respond to those who are seeing large increases, the Government introduced a support package worth £4.3 billion, to protect against ratepayers seeing large overnight increases in bills.
Rural Rate Relief also continues to be available for key amenities and community assets in rural areas. It provides 100% rate relief for properties that are based in eligible rural areas with populations below 3,000.
Pubs rents in business rates valuations are analysed differently to some other sectors. While most hospitality and leisure properties are valued by comparing the size of the property, pubs are valued by comparing their turnover potential. Industry bodies have highlighted concerns with how costs are accounted for in this methodology, particularly during periods of high inflation. There is significant overlap between the pub sector and live music venues, with many pubs serving as grassroots live music venues, meaning they are often valued for business rates purposes in a similar way.
The new pubs and live music venues relief is on top of the £4.3 billion support package announced at the Budget to support ratepayers across all sectors seeing bill increases. As a result of the Budget package, over half of ratepayers will see no bill increases. This also means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
The Government is also introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including soft play centres. These new tax rates are worth nearly £1 billion per year, and will benefit over 750,000 properties.
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 electric vehicles (EVs) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.
The Treasury has considered the impact of eVED on rural drivers; as with fuel duty, those who use the roads more will generally pay more in eVED. Although those living in rural areas tend to drive more than those living in urban areas, they are also more likely to have a dedicated home charger for their EV, which allows access to the lowest charging costs.
The eVED consultation provides further detail on how eVED will work and seeks views on its implementation. The consultation is available at GOV.UK: https://www.gov.uk/government/consultations/consultation-on-the-introduction-of-electric-vehicle-excise-duty-eved.
Postponed VAT accounting provides significant support for businesses, helping to manage cash flow and facilitate imports. HMRC undertakes regular operational work to ensure compliance with the rules around postponed VAT accounting.
The VAT gap has reduced from 13.8% in 2005-06 to 6.2% in 2024-25, and has remained broadly stable since 2020-21.
The Government keeps all tax policy under review as part of the policy making process
The number of people forecast to pay Income Tax by marginal rate can be found in Table 3.19 of the Office for Budget Responsibility’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.
Decisions around the determination and application of local Business Rates Supplement are for relevant local authority, must ensure they follow the requirements set out in the Business Rates Supplement Act 2009 and the policies set out in their final prospectus.
The Government has protected the smallest businesses and charities from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. That means more than half of businesses with NICs liabilities either gain or see no change this financial year.
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.
To support social care authorities to deliver key services, in light of pressures, the Government is making available up to £3.7 billion of additional funding for social care authorities in 2025/26, which includes a £880 million increase in the Social Care Grant. This is part of an overall increase to local government spending power of 6.8% in cash terms.
The High Income Child Benefit Charge is currently the best way to manage Child Benefit expenditure. By withdrawing Child Benefit from high-income families, it helps to ensure the sustainability of the public finances and protect our vital public services. As with all tax policy, the government will keep this under review.
At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
The LISA was designed to help people save for both their first home and later life. The Treasury Select Committee‘s 2025 LISA inquiry concluded that this dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. The upfront bonus that requires a withdrawal charge for non-compliant withdrawals was highlighted as a specific concern.
The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
The LISA was designed to help people save for both their first home and later life. The Treasury Select Committee‘s 2025 LISA inquiry concluded that this dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. The upfront bonus that requires a withdrawal charge for non-compliant withdrawals was highlighted as a specific concern.
The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
The scope of both a) the leak inquiry and b) the Permanent Secretary’s review will be set out when the outcomes of the Budget Information Security review are published, the aim of which is to conclude in advance of the Spring Statement on 3 March.
The Chancellor heads the Growth Mission Board. The membership is flexible, at the Chancellor's discretion, with internal and external attendees determined based on their relevance to the agenda.
It is a long-established precedent that information about the discussions that have taken place in Cabinet and its committees - including mission boards - including their attendance, and how often they have met, is not normally shared publicly.
At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
The LISA was designed to help people save for both their first home and later life. A 2025 report by the Treasury Select Committee, however, concluded the dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. In addition, the provision of an upfront bonus requires a withdrawal charge for non-compliant withdrawals.
HMRC have also conducted research into use of the Lifetime ISA which can be found here: Understanding the use of the Lifetime ISA: qualitative research - GOV.UK
The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
The LISA was designed to help people save for both their first home and later life. A 2025 report by the Treasury Select Committee, however, concluded the dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. In addition, the provision of an upfront bonus requires a withdrawal charge for non-compliant withdrawals.
HMRC have also conducted research into use of the Lifetime ISA which can be found here: Understanding the use of the Lifetime ISA: qualitative research - GOV.UK
The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
There has been no discussion with Scottish Assessors Association on the use of the automated valuation model in a Council Tax revaluation in Scotland.
HMRC’s financial wellbeing offer for its workforce, aligned to the Civil Service Financial Strategy, includes access to a variety of advances including rental deposits and season ticket loans, as well as debt/budgeting advice and support through its Employee Assistance Programme.
HMRC has no current plans to introduce payroll deduction arrangements, to enable its employees to join a Credit Union. It does not hold the role of policy lead for payroll deduction schemes across government, and decisions on the merits of payroll deduction arrangements would be a matter for the relevant departments.
HMRC’s financial wellbeing offer for its workforce, aligned to the Civil Service Financial Strategy, includes access to a variety of advances including rental deposits and season ticket loans, as well as debt/budgeting advice and support through its Employee Assistance Programme.
HMRC has no current plans to introduce payroll deduction arrangements, to enable its employees to join a Credit Union. It does not hold the role of policy lead for payroll deduction schemes across government, and decisions on the merits of payroll deduction arrangements would be a matter for the relevant departments.
HMRC no longer produce a breakdown of Child benefit claimed by nationality.
This release was discontinued following user consultation.
The latest publication was in August 2022. Income Tax, National Insurance contributions, Tax Credits and Child Benefit Statistics for Non-UK Nationals: 2019 to 2020 - GOV.UK
The VOA does not routinely publish its communications with local authorities.
Official statistics comparing the 2023 non-domestic rating lists and 2026 draft non-domestic rating lists for England and Wales, including a breakdown by special category code, (which includes the hotel sector), are published here.
We recognise that hotels have expressed concerns about how they are valued for business rates. Hotels valuations are undertaken in a different way to some other sectors. The methodology used is well established, but, as with pubs, the government has announced it will review the way hotels are valued to ensure it accurately reflects the rental value for these sectors.
We recognise that hotels have expressed concerns about how they are valued for business rates. Hotels valuations are undertaken in a different way to some other sectors. The methodology used is well established, but, as with pubs, the government has announced it will review the way hotels are valued to ensure it accurately reflects the rental value for these sectors.
Snooker halls are valued in the same way as any other class of non-domestic property, through applying the statutory and common law principles that apply across non-domestic rating.
The practice note used for the 2023 revaluation is published online here. The same approach has been applied in 2026.
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.
At Budget 2025 the Government confirmed that the standard rules for calculating income tax would apply to childminders who are mandated into Making Tax Digital (MTD). HMRC engaged with stakeholders including Coram PACEY ahead of Budget 2025. We will phase in this change between 2026 and 2028, in line with the MTD income thresholds. The threshold from April 2026 is £50,000 of qualifying income, reducing to £30,000 from April 2027 and £20,000 from April 2028. Childminders not within MTD can continue to use existing arrangements if they wish.
Childminders within MTD 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. Childminders may be better off deducting actual costs, if deductions under the existing arrangements are lower than their actual expenses.
HMRC will publish updated guidance for childminders in early 2026. Guidance on business expenses and on MTD for Income Tax is already available on GOV.UK. The Government will closely monitor the impacts of the policy over the course of the first year.
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.
At Budget 2025 the Government confirmed that the standard rules for calculating income tax would apply to childminders who are mandated into Making Tax Digital (MTD). HMRC engaged with stakeholders including Coram PACEY ahead of Budget 2025. We will phase in this change between 2026 and 2028, in line with the MTD income thresholds. The threshold from April 2026 is £50,000 of qualifying income, reducing to £30,000 from April 2027 and £20,000 from April 2028. Childminders not within MTD can continue to use existing arrangements if they wish.
Childminders within MTD 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. Childminders may be better off deducting actual costs, if deductions under the existing arrangements are lower than their actual expenses.
HMRC will publish updated guidance for childminders in early 2026. Guidance on business expenses and on MTD for Income Tax is already available on GOV.UK. The Government will closely monitor the impacts of the policy over the course of the first year.
The Valuation Office Agency is responsible for maintaining an accurate rating list in England independently of central government.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also 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.
There are a broad range of considerations when determining if a property is a restaurant or a pub including. All valuations are carried out by experienced professionals in accordance with industry best practice and legal requirements.
From April, every pub and live music venue will get 15% off its new business rates bill on top of the support announced at Budget, and then bills will be frozen in real terms for a further two years.
This relief will be awarded to pubs and live music venues at the discretion of Local Authorities, who will determine eligibility using guidance published by the Government and based on existing definitions.
Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'car tax', is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions. The government has no current plans to review this structure.
At Autumn Budget 2025, the government announced the introduction of Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028. Drivers will pay for their mileage alongside their existing Vehicle Excise Duty (VED).
The Energy UK report referred to assumes that the EU Carbon Border Adjustment Mechanism (CBAM) would apply in Northern Ireland. The EU CBAM does not apply in Northern Ireland. From 1 January 2027, the UK CBAM will apply across the whole of the UK, including Northern Ireland.
To reduce barriers to trade, the UK and EU are also negotiating a deal to link respective emissions trading schemes, which will create the conditions for mutual CBAM exemptions. Those talks have begun and the Government is working to negotiate a good deal in line with UK interests as quickly as is feasible.
The Government also welcomes the European Commission’s proposed amendments, published December 2025, which would mean electricity exports from the UK will not face an EU CBAM charge.