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.
A split of forecast property transactions by price band is not available.
However, a forecast of overall property transactions from the Office for Budgetary Responsibility is available here: https://obr.uk/forecasts-in-depth/the-economy-forecast/housing-market/#transactions.
Banking services fulfil a vital role for millions of people and businesses across the UK, and the Government is committed to ensuring high standards of consumer protection and financial inclusion across the financial services sector.
Earlier this year, the Government legislated to enhance protections for customers in cases where their bank account is terminated by their provider. Under these new rules coming into force for relevant new contracts from April 2026, Banks and other payment service providers will be required to give customers at least 90 days’ notice before closing their account or terminating a payment service and provide a clear and specific explanation so the customer can understand why it is being terminated.
These changes will ensure more transparent and predictable access to banking, giving customers the time and information they need to challenge decisions or find alternative arrangements.
Cheques remain an important part of the UK’s payments landscape. While there has been a decline in overall cheque volumes, they continue to be used by many individuals, businesses, charities and other voluntary organisations. Cheques can be deposited through a range of different channels, including at local bank branches, shared Banking Hubs and the Post Office.
To secure the future of cheque usage in the UK, HM Treasury introduced legislative measures in 2015 to allow banks and building societies to introduce ‘cheque imaging’. Cheque imaging allows a digital image of a cheque to be sent for clearing, rather than the paper cheque itself, and has also enabled people to pay in cheques via their smartphone or tablet.
The International Monetary Fund (IMF) is an independent international organisation. The Government engages regularly and constructively with the IMF, including during the annual bilateral surveillance process known as Article IV.
The Government is committed to the triple lock for the duration of this Parliament.
The Treasury continues to make progress and explore ways to strengthen processes for assessing the climate and environmental impacts of fiscal decisions and improve the Green Book in line with emerging evidence and best practice.
The Government is investing in sustainable farming and nature recovery, both boosting productivity and supporting food and economic security.
Fuel duty is projected to raise £24.4bn in 2025/26 and will remain in place. At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26.
The Chancellor meets with her Ministerial colleagues on a regular basis to discuss a wide range of issues. The Government keeps the tax system under review, with changes announced at fiscal events.
Fuel duty is projected to raise £24.4bn in 2025/26 and will remain in place. At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26.
The Chancellor meets with her Ministerial colleagues on a regular basis to discuss a wide range of issues. The Government keeps the tax system under review, with changes announced at fiscal events.
Fuel duty is projected to raise £24.4bn in 2025/26 and will remain in place. At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26.
The Chancellor meets with her Ministerial colleagues on a regular basis to discuss a wide range of issues. The Government keeps the tax system under review, with changes announced at fiscal events.
The Government makes tax policy decisions at fiscal events. If any changes are made to gambling duties at Budget, legislation will be accompanied by a Tax Information and Impact Note which will set out the expected impacts.
The Government is committed to reducing the number of illicit tobacco and vaping products on sale nationally.
For tobacco, HM Revenue and Customs (HMRC) has a robust strategy to tackle the illicit tobacco trade. HMRC works closely with Trading Standards to disrupt the illicit tobacco trade at retail level – known as Operation CeCe. In its first three years, more than 46 million illegal cigarettes and 12,600kg of hand-rolling tobacco were seized.
In July 2023, HM Revenue and Customs introduced a strengthened sanctions regime for breaches of the UK Tobacco Track and Trace System to combat illicit tobacco sales. New powers were also given to Trading Standards to make referrals to HMRC where they find evidence of high street retailers selling tobacco products that do not comply with the UK Tobacco Track and Trace System.
In January 2024, HMRC and Border Force published their latest illicit tobacco strategy, ‘Stubbing Out the Problem’. This sets out the Governments’ continued commitment to restrict the trade in illicit tobacco with a focus on reducing demand, and to tackle and disrupt organised crime groups. This strategy is supported by £100 million of new smokefree funding allocated over 5 years to boost existing HMRC and Border Force enforcement capability.
As with tobacco, there is a cross-government approach to reducing the number of illegal vapes. The vaping equivalent of Operation CeCe, Operation Joseph, led to the seizure of over 1 million illegal vapes in 2023-24, the last full year for which statistics are available.
HMRC are also working closely with both Trading Standards and Border Force to develop a robust compliance approach for the introduction of Vaping Products Duty (VPD) on 1 October 2026.
VPD is a new excise duty on vaping products, which will introduce additional compliance powers and controls across the vaping supply chain. This includes the introduction of a Vaping Duty Stamps (VDS) scheme, which will require highly secure stamps to be placed on all duty paid goods, supporting enforcement agencies and customers to identify illegal products.
HMRC are recruiting over 300 staff to strengthen this compliance approach and deliver VPD.
The latest available data from the Northern Ireland Statistics and Research Agency (NISRA) provides the following estimates for the percentage of Northern Ireland’s trade by destination:
Trade Partner | Industry Sector | 2016 value of NI trade (£m) and proportion of total NI trade | 2023 value of NI trade (£m) and proportion of total NI trade |
Great Britain | All industries | 26,712.73 (62%) | 33,325.48 (56%) |
Ireland | All industries | 5,571.31 (13%) | 12,412.28 (29%) |
Rest of the Europe Union (EU excluding Ireland) | All industries | 4,327.24 (10%) | 6,082.86 (14%) |
Rest of the World (all countries outside the UK and EU) | All industries | 6,307.29 (15%) | 8,136.56 (19%) |
Source: Northern Ireland Statistics and Research Agency (NISRA), Last updated 11/12/2024, NISRA website, NIETS Trade in Goods and Services, https://data.nisra.gov.uk/table/NIETS02. Accessed on: 24/10/2025
The Government is committed to the UK internal market and looks forward to receiving the report of the Independent Monitoring Panel shortly. This panel exists to provide vital independent oversight and assurance over the flows of goods within the UK internal market system.
The latest available data from the Northern Ireland Statistics and Research Agency (NISRA) provides the following estimates for the percentage of Northern Ireland’s trade by destination:
Trade Partner | Industry Sector | 2016 value of NI trade (£m) and proportion of total NI trade | 2023 value of NI trade (£m) and proportion of total NI trade |
Great Britain | All industries | 26,712.73 (62%) | 33,325.48 (56%) |
Ireland | All industries | 5,571.31 (13%) | 12,412.28 (29%) |
Rest of the Europe Union (EU excluding Ireland) | All industries | 4,327.24 (10%) | 6,082.86 (14%) |
Rest of the World (all countries outside the UK and EU) | All industries | 6,307.29 (15%) | 8,136.56 (19%) |
Source: Northern Ireland Statistics and Research Agency (NISRA), Last updated 11/12/2024, NISRA website, NIETS Trade in Goods and Services, https://data.nisra.gov.uk/table/NIETS02. Accessed on: 24/10/2025
The Government is committed to the UK internal market and looks forward to receiving the report of the Independent Monitoring Panel shortly. This panel exists to provide vital independent oversight and assurance over the flows of goods within the UK internal market system.
The Government has delivered an ambitious programme of reforms to make it easier for all firms to list and raise capital on UK markets. This includes overhauling the Prospectus regime and Listing Rules, providing more flexibility to firms and founders raising capital on UK markets.
At Mansion House 2025, the Government published its Financial Services Growth and Competitiveness Strategy, setting out our ten-year plan for the UK to be the world’s centre of choice for financial services investment now and in 2035, with capital markets a core pillar.
At Mansion House, the Chancellor also announced the formation of a Listings Taskforce to support businesses to list and grow in the UK.
In the last few weeks, recent IPOs such as The Beauty Tech Group, Princes Group, Fermi America and Shawbrook Bank have highlighted the continued appeal of the London Stock Exchange for ambitious companies.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Taxation is a vital source of revenue that helps to fund vital public services.
Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.
The Office for Budget Responsibility (OBR) is the Government’s official forecaster.
In 2020, the OBR estimated that the additional trade barriers associated with leaving the EU will reduce trade intensity by 15 per cent and as a result GDP will be 4 per cent lower than it otherwise would have been. The OBR estimated that around two-fifths of the 4 per cent impact had already occurred by the time the EU-UK Trade and Cooperation Agreement came into force, that GDP would be 2.7 per cent lower by 2025, with the remaining reduction occurring by 2031.
In the OBR’s March 2024 Economic and Fiscal Outlook, they reaffirmed these assumptions were on track, and as of Spring 2025 these forecasts were unchanged.
Other independent studies are also consistent with this analysis, for example the National Institute of Economic and Social Research estimates that GDP will be 5 to 6 per cent lower as a result of Brexit.
The Government recognises the significant contribution made by 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. The UK’s VAT rate of 20 per cent is close to the OECD average of 19.3 per cent. The UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD, at £90,000. This keeps the majority of businesses out of the VAT regime altogether.
HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £13 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater.
In her first week on the 8th of July 2024, the Chancellor of the Exchequer instructed HM Treasury officials to undertake an audit of public spending and public finances left by the last government. The audit’s findings showed a devastating forecast overspend on departmental spending of £21.9 billion above the resource departmental expenditure limit (RDEL) totals that had been set at Spring Budget 2024.
Taking immediate action to respond to the spending pressure on the UK’s public finances left by the last government, the government cancelled the Restoring Your Railway programme as a vital cost-saving measure of £85 million.
HM Treasury always carefully considers the impact of its decisions, but had to make difficult decisions in light of the black hole left by the last government.
The Government recognises that nature makes an important contribution to green economic growth and is taking action to invest in our natural assets.
The Government is investing in sustainable farming and nature recovery, both boosting productivity and supporting food and economic security.
To help deliver its environmental ambitions, the Government is also seeking to create the conditions to mobilise additional private finance into nature, including by driving the development of high-integrity nature markets for the UK.
The Office for National Statistics (ONS) are responsible for classification decisions and measurement of public debt. Both publicly and privately owned DfT-contracted train operating companies are already included in the public sector, classified currently by the ONS as public non-financial corporations. Network Rail is also already classified to central government. HM Treasury and Department for Transport officials will assist the ONS in this work as required.
The Government is committed to making the UK the best place for Fintechs, including payment providers, to start, scale and list.
The National Payments Vision, published in November 2024, set out the Government's ambitions for the UK’s payments sector to deliver world-leading payments. It established three key pillars to guide future activity: innovation, competition and security. To implement this, the Payments Vision Delivery Committee, chaired by HM Treasury, is overseeing work to renew the UK’s retail payments infrastructure, including looking at access for non-bank payment providers.
Building on this, the Financial Services Growth and Competitiveness Strategy, published in July, delivers on the Government’s mission to shape a regulatory environment for financial services that is proportionate, predictable and internationally competitive, embracing innovation and leveraging the UK’s leadership in Fintech.
The Government is committed to making the UK the best place for Fintechs, including payment providers, to start, scale and list.
The National Payments Vision, published in November 2024, set out the Government's ambitions for the UK’s payments sector to deliver world-leading payments. It established three key pillars to guide future activity: innovation, competition and security. To implement this, the Payments Vision Delivery Committee, chaired by HM Treasury, is overseeing work to renew the UK’s retail payments infrastructure, including looking at access for non-bank payment providers.
Building on this, the Financial Services Growth and Competitiveness Strategy, published in July, delivers on the Government’s mission to shape a regulatory environment for financial services that is proportionate, predictable and internationally competitive, embracing innovation and leveraging the UK’s leadership in Fintech.
Cyber security is a top priority for the Government, and HM Treasury works with the financial authorities, industry and with international partners to strengthen the financial sector’s resilience to threats and hazards of all origins, including cyber risks.
Cross-border transactions are an essential part of the global financial system, and Financial Market Infrastructure (FMI) plays a crucial role in enabling financial institutions and their customers to make payments, both in the UK and internationally.
Financial authorities deploy a range of tools to ensure FMI firms are resilient to the wide range of risks that they could face and that transactions are secure. This includes threat-led penetration testing and sector-wide cyber stress testing, alongside technical advice provided by the National Cyber Security Centre and the National Protective Security Authority.
The UK supports efforts to enhance cross border payments and is committed to achieving the aims of the G20 Roadmap, which seeks to make cross border payments faster, cheaper, more transparent and accessible.
The Government intends to bring forward legislation this year to create a comprehensive financial services regulatory regime for cryptoassets in the UK.
The UK also continues to engage with key international partners to respond to the global challenges and opportunities presented by digital asset innovation, including through fora such as the Financial Stability Board.
HMRC telephony performance data, including the average speed of answering a customer’s call, is published on a regular basis and can be accessed at: https://www.gov.uk/government/collections/hmrc-quarterly-performance-updates
The definition of ‘average speed of answering a customer’s call’ is the average time spent waiting in the queue for an adviser. This is from the time that the customer finished listening to HMRC’s automated messages and completed their selection from HMRC’s automated menu to the time when they get to speak to an adviser.
The below table shows the average amount of time people spent on hold with HMRC – this is when a call has been answered by an adviser and the individual has subsequently been put on hold. The data covers the past year, broken down by quarter:
2024-25 Q1 | 2024-25 Q2 | 2024-25 Q3 | 2024-25 Q4 |
1min 4s | 1min 25s | 1min 16s | 1min 15s |
HMRC are taking steps to make sure more of their services are digital, so customers can self-serve online. HMRC online services and the HMRC app are convenient to access and receive high customer satisfaction ratings. As more people use HMRC online services, advisers are freed up to support those with more complex queries and those who are digitally excluded.
The Valuation Office Agency (VOA) conducts analysis of changes in rateable value to prepare for regular revaluations. The VOA is currently working on a revaluation of all non-domestic properties, which will come into effect on 1 April 2026. For the upcoming 2026 revaluation, as with other revaluations, the VOA is receiving ongoing representations from the airport sector.
The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context.
We are fully committed to supporting the aviation industry. The sector is vital to our future as a global trading nation and will play an important role in local economies.
Business rates are a vital source of revenue for Local Government. The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
As announced at Autumn Budget 2024, the Government will introduce permanently lower multipliers for retail, hospitality, and leisure properties with ratable values below £500,000 from 2026-27. This permanent tax cut will ensure they benefit from much-needed certainty and support.
The Government currently provides a 40 per cent business rates relief for eligible retail, hospitality, and leisure (RHL) properties, up to a cash cap of £110,0000 per business, in 2025-26. Eligibility for the RHL relief scheme is outlined in guidance published by the Ministry of Housing, Communities & Local Government, and is focused on RHL properties that are wholly or mainly open to visiting members of the public. This is to ensure that support is targeted at in-person RHL, thereby helping to rebalance the burden between online and high-street retailers. There are no plans to expand the scope of this relief.
From 2026/27, the Government is introducing permanently lower business rates multipliers for RHL properties with rateable values (RVs) below £500,000. Details on which RHL properties will qualify for these lower multipliers can be found online here:
https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure.
To fund these lower RHL multipliers sustainably, from 2026/27, the Government is also introducing a higher multiplier on properties with RVs of £500,000 and above.
The Government currently provides a 40 per cent business rates relief for eligible retail, hospitality, and leisure (RHL) properties, up to a cash cap of £110,0000 per business, in 2025-26. Eligibility for the RHL relief scheme is outlined in guidance published by the Ministry of Housing, Communities & Local Government, and is focused on RHL properties that are wholly or mainly open to visiting members of the public. This is to ensure that support is targeted at in-person RHL, thereby helping to rebalance the burden between online and high-street retailers. There are no plans to expand the scope of this relief.
From 2026/27, the Government is introducing permanently lower business rates multipliers for RHL properties with rateable values (RVs) below £500,000. Details on which RHL properties will qualify for these lower multipliers can be found online here:
https://www.gov.uk/guidance/business-rates-multipliers-qualifying-retail-hospitality-or-leisure.
To fund these lower RHL multipliers sustainably, from 2026/27, the Government is also introducing a higher multiplier on properties with RVs of £500,000 and above.
The Digital Services Tax is an interim solution to widely held concerns with the international corporate tax framework, and the UK remains committed to remove it once a global solution on the reallocation of taxing rights is in place.
As the Chancellor has previously said, we will continue to make sure that businesses pay their fair share of tax, including businesses in the digital sector.
The Government understands the concerns that have been raised about basing the High Income Child Benefit Charge (HICBC) on individual rather than household incomes. However, basing the charge on household rather than individual incomes would come at a significant fiscal cost if we were to ensure that no families lose out.
By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services.
Charities rightly enjoy generous tax reliefs, worth over £6bn in 2024. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules to be included in the forthcoming Finance Bill for legacy giving and attributable income will help ensure a charity uses its tax relieved income for its charitable purposes. The rules are well targeted and so should not deter legitimate donors from leaving a legacy to charity or prevent charities from building a long-term endowment.
The updated rule for tainted donations will replace the current purpose test with an outcome test in order to better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation. They are not intended to affect genuine charitable giving or penalise honest donors.
Updated guidance will be tested with the sector and published prior to the changes taking effect. This will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
Charities rightly enjoy generous tax reliefs, worth over £6bn in 2024. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules to be included in the forthcoming Finance Bill for legacy giving and attributable income will help ensure a charity uses its tax relieved income for its charitable purposes. The rules are well targeted and so should not deter legitimate donors from leaving a legacy to charity or prevent charities from building a long-term endowment.
The updated rule for tainted donations will replace the current purpose test with an outcome test in order to better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation. They are not intended to affect genuine charitable giving or penalise honest donors.
Updated guidance will be tested with the sector and published prior to the changes taking effect. This will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
Charities rightly enjoy generous tax reliefs, worth over £6bn in 2024. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules to be included in the forthcoming Finance Bill for legacy giving and attributable income will help ensure a charity uses its tax relieved income for its charitable purposes. The rules are well targeted and so should not deter legitimate donors from leaving a legacy to charity or prevent charities from building a long-term endowment.
The updated rule for tainted donations will replace the current purpose test with an outcome test in order to better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation. They are not intended to affect genuine charitable giving or penalise honest donors.
Updated guidance will be tested with the sector and published prior to the changes taking effect. This will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
Charities rightly enjoy generous tax reliefs, worth over £6bn in 2024. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules to be included in the forthcoming Finance Bill for legacy giving and attributable income will help ensure a charity uses its tax relieved income for its charitable purposes. The rules are well targeted and so should not deter legitimate donors from leaving a legacy to charity or prevent charities from building a long-term endowment.
The updated rule for tainted donations will replace the current purpose test with an outcome test in order to better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation. They are not intended to affect genuine charitable giving or penalise honest donors.
Updated guidance will be tested with the sector and published prior to the changes taking effect. This will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
Charities rightly enjoy generous tax reliefs, worth over £6bn in 2024. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules to be included in the forthcoming Finance Bill for legacy giving and attributable income will help ensure a charity uses its tax relieved income for its charitable purposes. The rules are well targeted and so should not deter legitimate donors from leaving a legacy to charity or prevent charities from building a long-term endowment.
The updated rule for tainted donations will replace the current purpose test with an outcome test in order to better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation. They are not intended to affect genuine charitable giving or penalise honest donors.
Updated guidance will be tested with the sector and published prior to the changes taking effect. This will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
I refer the Hon. Member the answer that I gave to PQ UIN 81415.
I refer the Hon. Member the answer that I gave to PQ UIN 81415.
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.
As set out at Autumn Budget 2024, the Government will consider the merits of raising the threshold for zero emissions cars only at a future fiscal event. The government keeps all taxes and thresholds under review.
HMRC recognise that repayments are important for customers. They prioritise them and work hard to ensure they are processed as quickly and securely as possible.
Like any financial institution, HMRC are an attractive target for organised criminals who continually test their security and repayment controls. HMRC aim to balance ensuring prompt payments to eligible customers with effective revenue protection from fraudsters.
Voluntary returns are submitted by customers who are not required to file a Self Assessment return but choose to do so, often to reclaim overpaid tax. These cases can require additional manual checks, particularly where PAYE income is involved, to ensure repayments are not duplicated.
Because customers submitting voluntary Self Assessment returns are not required to file, these cases are not currently included separately in HMRC’s reported performance data. While these returns are worked and processed by operational teams, they fall outside the scope of published metrics and are therefore not counted in official service level reporting.
HMRC has communicated to agent communities that customers can help reduce delays by registering for Self Assessment before submitting a return. Additional staff have been deployed to reduce delays in processing voluntary Self Assessment repayment cases, particularly those requiring manual checks. Work is also underway to explore automation opportunities to improve processing times and reduce the number of customers affected by repayment delays.
HMRC recognise that repayments are important for customers. They prioritise them and work hard to ensure they are processed as quickly and securely as possible.
Individuals can check when they are likely to receive a response by using HMRC’s ‘Where’s my reply’ tool which is available here:
www.gov.uk/guidance/check-when-you-can-expect-a-reply-from-hmrc
In relation to CIS repayments, HMRC are recruiting and training more colleagues to improve the service and issue CIS repayments more quickly. In cases of hardship, taxpayers can contact HMRC to look at their case and, where possible, make the repayment sooner.
HMRC’s service standard is to respond to 80% of CIS repayment claims for limited companies within 15 working days. The department has a plan in place to clear existing backlogs and return to meeting the service level agreement by January 2026.
HM Treasury Ministers also discuss a range of subjects with Ministers from all other departments, including the Department for Environment, Food and Rural Affairs.
HM Treasury Ministers also discuss a range of subjects with Ministers from all other departments, including the Department for Environment, Food and Rural Affairs.
The Chancellor is actively engaging with EU and G7 partners through regular discussions with G7 finance ministers to explore all viable legal avenues to make use of Russia’s sovereign assets for the benefit of Ukraine, in line with international law.
Separately, the Government is working hard to ensure that the proceeds from the sale of Chelsea Football Club are directed towards humanitarian causes in Ukraine as swiftly as possible. These proceeds are not sovereign Russian assets, but rather funds owned by a private entity (Fordstam Ltd), which is itself owned by a Designated Person under UK sanctions regulations – Mr Abramovich.
In common with all other frozen funds, the proceeds from the sale of Chelsea Football Club remain the property of the Designated Person. Agreement must be given by Fordstam Ltd for these funds to be transferred to a new independent charitable foundation for humanitarian assistance in Ukraine. To date, they have not provided this agreement.
While the door for negotiating an agreement remains open, the Government is fully prepared to pursue this matter through the courts if required.
HMRC do not publish individual level analysis of Income Tax brackets by (a) ethnicity or (b) nationality.
The Treasury receives correspondence across a wide variety of subjects including financial services. While we are not able to measure the number of complaints the department receives in relation to high-cost credit for business loans with interest rates payable of more than 40%, the volume of correspondence on the cost of credit in relation to business loans is generally low.
The Financial Ombudsman Service (FOS) publishes annual and quarterly insights into which areas are attracting most complaints. In its last quarterly publication, it noted that complaints about unaffordable lending had halved. That data-point does not, however, distinguish between household and commercial credit and the areas of topical complaints may change quarter on quarter. In the last five years, credit card related complaints to the FOS have been one of the top five areas of complaints, but business lending specifically is not a significant source of FOS disputes in comparison to household and personal credit.
The Bank of England’s ‘bankstats’ data provides insights into business and household credit, including the effective interest rates for SMEs on new and outstanding loans. The monthly average of UK resident banks’ sterling weighted loans for new advances to SMEs now stands at 6.35%, as of 31st August 2025, a figure that has tracked down as the base rate has fallen.
Landfill Tax was introduced in 1996 as a behavioural tax encouraging the diversion of material away from landfill to reuse and recycling. It has been a key driver behind local authority waste to landfill in England falling by 90% since 2000.
HMRC refunded landfill tax reclaimed by private landfill operators following the Waste Recycling Group Limited case in 2008. £147m related to daily cover and haul roads and £133m related to base and side fluff. Refunds ceased in 2013 and since then repayment claims totaling £3.9bn have been prevented as a result of successful litigation.
The Government publishes annual statistics on HMRC’s taxable benefits in kind for company cars and company car fuel. These reports document the number of benefit in kind recipients, the CO2 emissions of company cars and their total taxable value. The latest statistics for the tax year 2023-24 were published in June 2025, and are accessible here: https://www.gov.uk/government/statistics/benefits-in-kind-statistics-june-2025/benefit-in-kind-statistics-commentary-june-2025
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.
As of 14 October 2025, the National Wealth Fund has committed £7.5 billion to projects supporting the Government’s growth and clean energy missions, mobilising £16.2 billion in private finance. This is just over 25% of NWF’s £27.8 billion capitalisation.
The National Wealth Fund expects to commit the vast majority of its £27.8 billion financial capacity over the next five years.