HM Treasury
HM Treasury is the government’s economic and finance ministry, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth.
Shadow Ministers / Spokeperson
Liberal Democrat
Baroness Kramer (LD - Life peer)Liberal Democrat Lords Spokesperson (Treasury and Economy)
Daisy Cooper (LD - St Albans)
Liberal Democrat Spokesperson (Treasury)
Conservative
Mel Stride (Con - Central Devon)Shadow Chancellor of the Exchequer
Junior Shadow Ministers / Deputy Spokesperson
Conservative
Lord Altrincham (Con - Excepted Hereditary)Shadow Minister (Treasury)
Richard Fuller (Con - North Bedfordshire)
Shadow Chief Secretary to the Treasury
Gareth Davies (Con - Grantham and Bourne)
Shadow Financial Secretary (Treasury)
Baroness Neville-Rolfe (Con - Life peer)
Shadow Minister (Treasury)
Junior Shadow Ministers / Deputy Spokesperson
Conservative
James Wild (Con - North West Norfolk)Shadow Exchequer Secretary (Treasury)
Mark Garnier (Con - Wyre Forest)
Shadow Economic Secretary (Treasury)
Ministers of State
Darren Jones (Lab - Bristol North West)Chief Secretary to the Treasury
Lord Livermore (Lab - Life peer)
Financial Secretary (HM Treasury)
Baroness Gustafsson (Lab - Life peer)
Minister of State (HM Treasury)
Parliamentary Under-Secretaries of State
James Murray (LAB - Ealing North)Exchequer Secretary (HM Treasury)
Emma Reynolds (Lab - Wycombe)
Economic Secretary (HM Treasury)
Torsten Bell (Lab - Swansea West)
Parliamentary Secretary (HM Treasury)
15:45
Oral Evidence
This inquiry will examine quantitative tightening, including its impact on the economy and its fiscal costs. It will also investigate …
To ask the Chancellor of the Exchequer, with reference to the Spending Review 2025, published on 11 June 2025, if …
These Regulations amend the Revenue and Customs (Complaints and Misconduct) Regulations 2010 (“the principal Regulations”) which govern the recording, handling …
A Bill to Authorise the use of resources for the years ending with 31 March 2024, 31 March 2025 and …
HM Treasury Commons Appearances
Oral Answers to Questions is a regularly scheduled appearance where the Secretary of State and junior minister will answer at the Dispatch Box questions from backbench MPs
Other Commons Chamber appearances can be:- Urgent Questions where the Speaker has selected a question to which a Minister must reply that day
- Adjornment Debates a 30 minute debate attended by a Minister that concludes the day in Parliament.
- Oral Statements informing the Commons of a significant development, where backbench MP's can then question the Minister making the statement.
Westminster Hall debates are performed in response to backbench MPs or e-petitions asking for a Minister to address a detailed issue
Written Statements are made when a current event is not sufficiently significant to require an Oral Statement, but the House is required to be informed.
Bills currently before Parliament
HM Treasury does not have Bills currently before Parliament
Acts of Parliament created in the 2024 Parliament
A Bill to make provision about secondary Class 1 contributions.
This Bill received Royal Assent on 3rd April 2025 and was enacted into law.
A Bill to make provision about finance.
This Bill received Royal Assent on 20th March 2025 and was enacted into law.
A Bill to amend the Crown Estate Act 1961.
This Bill received Royal Assent on 11th March 2025 and was enacted into law.
A Bill to Authorise the use of resources for the years ending with 31 March 2024, 31 March 2025 and 31 March 2026; to authorise the issue of sums out of the Consolidated Fund for those years; and to appropriate the supply authorised by this Act for the years ending with 31 March 2024 and 31 March 2025.
This Bill received Royal Assent on 11th March 2025 and was enacted into law.
A Bill to make provision for loans or other financial assistance to be provided to, or for the benefit of, the government of Ukraine.
This Bill received Royal Assent on 16th January 2025 and was enacted into law.
A Bill to impose duties on the Treasury and the Office for Budget Responsibility in respect of the announcement of fiscally significant measures.
This Bill received Royal Assent on 10th September 2024 and was enacted into law.
A Bill to authorise the use of resources for the year ending with 31 March 2025; to authorise both the issue of sums out of the Consolidated Fund and the application of income for that year; and to appropriate the supply authorised for that year by this Act and by the Supply and Appropriation (Anticipation and Adjustments) Act 2024.
This Bill received Royal Assent on 30th July 2024 and was enacted into law.
HM Treasury - Secondary Legislation
Petitions
e-Petitions are administered by Parliament and allow members of the public to express support for a particular issue.
If an e-petition reaches 10,000 signatures the Government will issue a written response.
If an e-petition reaches 100,000 signatures the petition becomes eligible for a Parliamentary debate (usually Monday 4.30pm in Westminster Hall).
(6,318 in the last 7 days)
(746 in the last 7 days)
(245 in the last 7 days)
(157 in the last 7 days)
(6,318 in the last 7 days)
(245 in the last 7 days)
(746 in the last 7 days)
(157 in the last 7 days)
c. 1,324 added daily
275,285
(Estimated)
Raise the income tax personal allowance from £12,570 to £20,000
Sign this petition Gov Responded - 20 Feb 2025 Debated on - 12 May 2025closes in 0 minutes
Raise the income tax personal allowance from £12570 to £20000. We think this would help low earners to get off benefits and allow pensioners a decent income.
Petition Closed
Don't change inheritance tax relief for working farms
Gov Responded - 5 Dec 2024 Debated on - 10 Feb 2025closed 1 month, 1 week 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 2 weeks, 4 days 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 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: Upcoming Events
24 Jun 2025, 9:45 a.m.
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Treasury Committee - Oral evidence
AI in financial services
24 Jun 2025, 9:45 a.m.
At 10:15am: Oral evidence
Professor Sandra Wachter - Professor of Technology and Regulation at University of Oxford
Professor Galina Andreeva - Director of Credit Research Centre and Senior Lecturer in Management Science at University of Edinburgh
Professor Neil Lawrence - DeepMind Professor of Machine Learning at University of Cambridge
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Treasury Committee - Oral evidence
Spending Review 2025
25 Jun 2025, 9:45 a.m.
At 10:00am: Oral evidence
Darren Jones MP - Chief Secretary to the Treasury at HM Treasury
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Treasury Committee: 14 Current Inquiries
Treasury Committee: Previous Inquiries
50 most recent Written Questions
(View all written questions)The government is setting out a more targeted, long-term local growth funding model across the UK, completing the transition from the UK Shared Prosperity Fund. This is only one part of our wider regional growth strategy, including our support for devolution, local government funding reform, and significant investment in housing, transport and innovation, ensuring that benefits are felt across the country.
The government is investing in up to 350 deprived communities across the UK, to fund interventions including community cohesion, regeneration and improving the public realm.
MHCLG will set out more detail in due course.
Chief Secretary to the Treasury
On 19 June, the government published UK Infrastructure: A 10 Year Strategy. This sets out a long-term vision to deliver the infrastructure needed to drive the government’s missions, backed by at least £725 billion in infrastructure investment over the next decade.
Social, economic and housing infrastructure underpin the government’s central missions and the Plan for Change. That is why this government’s strategy brings together housing, social and economic infrastructure, aligning planning and delivery over the next 10 years to support growth.
The government has made its commitment to housing clear, including through major reforms to the planning system, its 10 year £39 billion investment in the Affordable Homes Programme, and the establishment of a new National Housing Bank backed with £16 billion of financial capacity, on top of £6bn of existing finance to be allocated this Parliament.
Chief Secretary to the Treasury
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.
The Chancellor has regular discussions with other Government Ministers on matters of common interest.
Exchequer Secretary (HM Treasury)
The UK Government has provided £50m of Capital Financial Transactions funding to redevelop Casement Park. The UK Government will continue to work with the Northern Ireland Executive, however it is up to the Executive to design and implement the Financial Transaction. The Financial Transaction will be provided to the Executive on a net basis, it does not need to be repaid to the UK Government and the Executive can recycle any repayments indefinitely.
Chief Secretary to the Treasury
At the Budget last autumn, the Government introduced the most ambitious package ever to close the tax gap, ensuring more individuals and businesses pay the taxes they owe and raising £6.5 bn in additional tax revenue per year by 2029-2030. At the Spring Statement, the Government built on this and announced a package of measures to further close the tax gap and raise over £1 billion more.
The announcements since the start of this Government will see 5,500 more compliance officers, alongside 2400 staff in HMRC’s debt management teams to ensure those who can afford to pay their tax debts do so.
The Government is also delivering on its commitments to prosecute more tax fraudsters, to introduce a new HMRC reward scheme for informants, to tackle ‘phoenixism’, and to overhaul HMRC’s approach to offshore tax non-compliance. The Government has also set out its plans to go further in the future to make it easier for taxpayers to pay the right tax through a modern and digital tax system.
Exchequer Secretary (HM Treasury)
Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value (RV). Eligible properties under £12,000 will receive 100 per cent relief, which means over a third of businesses in England (more than 700,000) pay no business rates at all. There is also tapered support available to properties valued between £12,000 and £15,000.
The upcoming 2026 revaluation will update RVs to reflect their estimated market value at the 1 April 2024 valuation date. The VOA will publish the draft list of all RVs in the Autumn.
Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses).
The Government keeps the AMAP rates under review and HMRC use a variety of information in estimating typical motoring costs per business mile. This includes information from the AA, the National Travel Survey, the Association of British Insurers, and the Department for Energy Security and Net Zero.
The AMAP rates are intended to reflect both running costs, such as fuel, and a proportion of standing costs, such as insurance, MOT, and depreciation. In estimating typical motoring costs per business mile, the Government must therefore consider the weighting given to each component and how to apportion certain costs.
Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses).
The Government keeps the AMAP rates under review and HMRC use a variety of information in estimating typical motoring costs per business mile. This includes information from the AA, the National Travel Survey, the Association of British Insurers, and the Department for Energy Security and Net Zero.
The AMAP rates are intended to reflect both running costs, such as fuel, and a proportion of standing costs, such as insurance, MOT, and depreciation. In estimating typical motoring costs per business mile, the Government must therefore consider the weighting given to each component and how to apportion certain costs.
Exchequer Secretary (HM Treasury)
The Government recognises the important role that small businesses and sole traders play in the economy, and the impact that inflation can have on them. We are putting the public finances on a sustainable path and investing in the future, creating a stable environment for growth.
At the Budget we introduced a range of tax measures that benefit small businesses and sole traders. These included:
• More than doubling the Employment Allowance to £10,500. This means more than half of businesses with NICs liabilities will either gain or see no change this year.
• Maintaining the Small Profits Rate and marginal relief at their current rates and thresholds, as well as maintaining the £1 million Annual Investment Allowance; and
• Freezing the small business multiplier for 2025/26 meaning that, taken together with Small Business Rate Relief (SBRR), over a million properties are protected from inflationary bill increases.
The Budget announcements on business rates reflect the Government’s first steps to support the high street. We want to go further to modernise the system, and so, we have published a Discussion Paper setting out priority areas for reform. This paper invited industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century.
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are kept out of the VAT system.
Exchequer Secretary (HM Treasury)
The Government has taken a number of decisions on tax to stabilise the public finances and support public services. Ending tax breaks for private schools will raise £1.8bn a year.
To raise school standards for every child, and break down the barriers to opportunity, the government will increase the core schools budget by £2.0bn in real terms over this Spending Review (2023-24 to 2028-29). This provides a £4.7bn cash increase per year by 2028-29 (compared to 2025-26), which ensures average real terms growth of 1.1% a year per pupil.
Exchequer Secretary (HM Treasury)
At the Autumn Budget, the government published the Transforming Business Rates Discussion Paper, which set out priority areas for reform. This paper invited industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century.
This paper sought views on the efficacy of Improvement Relief, which was introduced in April 2024 and provides 12 months of relief for qualifying improvements to a property where this increases a property’s RV, including air conditioning systems.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.
Eligible plant and machinery used in onsite renewable energy generation and storage, such as rooftop solar panels, wind turbines, and battery storage, are exempt from business rates from 1 April 2022 until 31 March 2035.
Exchequer Secretary (HM Treasury)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016. The only remaining part of the Payment Scheme in operation is the annual payments made to eligible With-Profit-Annuitants and the Scheme is on track to distribute the remainder of the £1.5 billion originally allocated as planned.
Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Parliamentary Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement
Through our commitment to protect the Triple Lock, over 12 million pensioners benefitted from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast
The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.
Parliamentary Secretary (HM Treasury)
The UK’s tariff schedule, known as the UK Global Tariff (UKGT), adheres to global classification standards. Those classify mastectomy bras under a commodity code that covers a range of other textiles.
We continue to monitor the UKGT to ensure our Most Favoured Nation tariff schedule functions as effectively as possible, supports domestic priorities, and provides a stable operating environment for businesses.
Businesses are welcome to request the partial or full liberalisation of the import duty applied to the products under this commodity code, including mastectomy bras, either through the online feedback form or the next business suspensions window.
Exchequer Secretary (HM Treasury)
Banking hubs are a voluntary service which were developed by the financial services sector in the context of legislation to protect access to cash under the Financial Services and Markets Act 2023. Their rollout is overseen by Cash Access UK (CAUK), a not-for-profit company set up and funded by the banks for the purpose of coordinating banking hub delivery.
The Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 230 hubs have been announced so far, and over 160 are already open.
Where a branch closure is announced or a community has submitted a cash access assessment request, LINK, the independent industry coordinating body responsible for making access to cash assessments, assesses a community’s access to cash needs. LINK will recommend appropriate solutions where it considers that a community requires additional cash services, such as a banking hub or deposit service.
The Financial Conduct Authority (FCA) rules require LINK to consider a range of factors in their assessments, such as population demographics and levels of vulnerability within the community.
The Government is committed to ensuring that all individuals have the financial capability to manage their money well and recognises that certain groups – such as women – may face specific barriers to financial literacy and inclusion. The Money and Pensions Service (MaPS) is supported by the Government to provide a wide range of tools and guidance to help people manage money confidently at every stage of life. Furthermore, by making Financial Education and Capability a focus within the Financial Inclusion Strategy, the Government aims to address these barriers and ensure that women, as well as other groups who face barriers, are better equipped to access affordable and appropriate financial products and services.
Economic Secretary (HM Treasury)
HM Treasury is working with Government People Group in the Cabinet Office to understand the revised model policies and will implement required changes accordingly.
Exchequer Secretary (HM Treasury)
Child Benefit is a non-means tested benefit payable to families as a contribution towards the cost of raising children. The High Income Child Benefit Charge (HICBC) is a tax charge for families in receipt of Child Benefit payments on higher individual incomes, of £60,000 or more. These families can either get the Child Benefit payments and pay the tax charge or opt out of receiving the payments, and not have to pay the HICBC.
The number of families opting out of Child Benefit payments by Westminster Parliamentary Constituency, region and country can be found in table 12 in the latest annual Child Benefit statistics release: Child Benefit Statistics: annual release, August 2024 - GOV.UK.
The number of those paying the tax charge by region and country can be found in table 17 of the same publication. These figures relate to 2022 to 2023 tax year when the HICBC threshold was £50,000.
The policy to provide support for a maximum of two children in Universal Credit does not apply to Child Benefit.
Exchequer Secretary (HM Treasury)
The UK and Welsh Governments have regular discussions on the delivery funding arrangements, including the Fiscal Framework.
We remain committed to working in partnership with the Welsh Government to ensure the Fiscal Framework continues to deliver value for money while upholding our shared commitment to fiscal responsibility.
As set out in the Welsh Government Fiscal Framework agreed in 2016, a full review is triggered if the Welsh Government’s relative funding falls below 115% of equivalent UK Government spending per head in the rest of the UK.
Chief Secretary to the Treasury
The Growth Mission Fund will invest £240 million of capital from 2026/27 to 2029/30 in projects that enable local job creation and the economic regeneration of local communities. Further detail on this fund and the criteria that will be applied for project selection will be set out in due course.
Chief Secretary to the Treasury
This week, the government published its 10-year infrastructure strategy. The strategy brings together a long-term plan for the social, economic and housing infrastructure across the UK.
Alongside considering the UK’s economic and social infrastructure needs, the strategy sets out how we are reforming institutions and changing the way we make decisions and deliver infrastructure, maximising the benefits of our strong fiscal and spending frameworks, breaking down regulatory and planning barriers, and resetting our relationship with the private sector.
Chief Secretary to the Treasury
3 events were held by the Treasury’s staff networks in May 2025.
Treasury History Network held 2 sessions of “Wars, fires and pandemics: how events shaped our buildings”.
The Ethnic Diversity Network hosted “Inclusivity within national security and demystifying the DV process”.
Exchequer Secretary (HM Treasury)
Implementation costs will be confirmed in due course when we have negotiated the details of these arrangements. This will include proportionate contributions in specific and limited areas, such as where access to specific IT systems will help to remove trade barriers for UK firms or help us to manage biosecurity risks. The UK will also negotiate fair financial contributions to the Erasmus+ programme which will reflect the benefits of participation. We will not be making general contributions to the EU budget.
Exchequer Secretary (HM Treasury)
We are creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
To deliver our manifesto pledge, from 2026-27, we intend to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support.
This tax cut must be sustainably funded, and so, from 2026-27, we intend to introduce a higher rate on the most valuable properties – those with Rateable Values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
When the new, permanently lower tax rates are set at Autumn Budget 2025, the Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Exchequer Secretary (HM Treasury)
HM Treasury employs 14 Sikh staff (0.7% of the department), and this is recorded under religion in line with the Government Statistical Service (GSS) guidance.
Exchequer Secretary (HM Treasury)
Charlie Dewhirst
(Conservative - Bridlington and The Wolds)
I refer the Honourable Member to the PQ referenced UIN 29334 published on 5th February 2025 at: https://questions-statements.parliament.uk/written-questions/detail/2025-02-05/29334.
Exchequer Secretary (HM Treasury)
The Government recognises that the ability to access cash and in-person banking support remains essential for many, which is why we have secured the industry’s commitment to roll out 350 banking hubs by the end of this Parliament, ensuring that access to face-to-face banking is protected. Over 230 hubs have been announced so far, and over 160 are already open.
Banking hubs already offer everyday counter services, allowing people and businesses to withdraw and deposit cash, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.
The Government has been working closely with industry and significant progress has been made in enhancing baseline service standards, ensuring customers can access services without the need to bring their own devices and addressing service gaps. Some banks already offer account opening at hubs. Banking hubs are also currently piloting the use of printers, and some are experimenting with Saturday opening hours to better meet the demand for face-to-face banking services.
More widely, ensuring individuals have access to the appropriate financial products and services they need is a key priority for the Government. That is why I have committed to publish a Financial Inclusion Strategy later this year which will examine the barriers consumers face in accessing the products they need. This includes a focus on measures to increase access to affordable credit and support financial capability.
The Government is committed to ensuring that people can access high-quality, affordable, and suitable financial advice, as well as free-to-access financial guidance, when they need it. HM Treasury works closely with the Financial Conduct Authority (FCA), the independent regulator of the financial advice market, to ensure that the market works well, competitively, and fairly for both firms and consumers, and that the advice being provided is of high-quality. The Government keeps the regulatory framework under review and works with the FCA to ensure it remains fit for purpose. The Government and the FCA are taking forward proposals for a transformational new regime, Targeted Support, to improve access to consumer support with financial decision-making. Targeted Support would enable financial services firms to suggest appropriate products or courses of action using limited information about a customer and their circumstances.
Banking hubs are a voluntary initiative by banks as part of meeting their access to cash obligations, as legislated for in the Financial Services and Markets Act 2023. The Government are not minded to review the legislation passed by the previous Government.
Economic Secretary (HM Treasury)
Currently, properties which are wholly or mainly used for charitable purposes are eligible for charitable relief, which provides businesses with up to 80% off their business rates bills. Provision of further relief to charitable properties is at the discretion of local authorities.
Exchequer Secretary (HM Treasury)
To enable the government to invest more in security and defence, while remaining committed to our fiscal rules, the Prime Minister has taken the difficult decision to reduce Official Development Assistance (ODA) to the equivalent of 0.3% of GNI by 2027. The Spending Review (SR) 2025 ODA settlement delivers on this. The government remains committed to returning spending on ODA to 0.7% of GNI when the fiscal circumstances allow. The government will continue to monitor future forecasts closely, and each year will review and confirm, in accordance with the International Development (Official Development Assistance Target) Act 2015, whether a return to spending 0.7% of GNI on ODA is possible against the latest fiscal forecast.
Chief Secretary to the Treasury
The Government must ensure the tax system supports strong public finances whilst targeting support where it is most needed. Mortgage interest relief, which was a historical feature of the UK tax system that was abolished in 2000, benefitted lower income individuals less when compared to higher income groups or not at all. It also provides little support to tenants who rent as there is no guarantee that these relieved costs are passed on.
The Government is supporting home ownership through other means. This includes launching a permanent, UK-wide mortgage guarantee scheme to ensure the consistent availability of mortgages for buyers with small deposits.
We know that increasing housing supply is the long-term answer to making home ownership more accessible. The Government has already introduced ambitious reforms to the planning system, judged by the Office for Budget Responsibility (OBR) to boost housebuilding to its highest level in 40 years. Through Phase 2 of the Spending Review, the Government is going further to deliver on its Plan for Change commitment of building 1.5 million homes this parliament, including by catalysing additional private investment to further boost housebuilding by confirming £4.8bn in financial transactions from 2026/27 to 2029/30.
Economic Secretary (HM Treasury)
The government’s financing strategy is designed to align with the Debt Management Objective, which is to minimise over the long term, the cost of meeting the Government’s financing needs, taking account of risk, while ensuring that debt management policy is consistent with the aims of monetary policy. To meet its financing requirement for each financial year, the government issues an appropriate balance of conventional and index-linked gilts over a range of maturities. Issuing index-linked gilts has historically brought cost advantages for the government due to strong investor demand and has historically helped to underscore the credibility of the government’s commitment to low and stable inflation. As set out in HM Treasury’s Debt Management Report 2025-26, analysis by the Debt Management Office shows that, for gilts that matured since their introduction in 1981 but prior to January 2025, the government generated direct savings of around £90.8 billion in total from the issuance of index-linked gilts if valued at maturity, or £184.7 billion in 2025 terms.
Economic Secretary (HM Treasury)
The government recognises that access to banking services is vital for people and businesses across the UK and is a matter of concern for certain sectors such as cryptoasset firms and their customers.
The government continues to engage with the banking sector and affected industries to better understand the existing and emerging issues in this area.
The government also welcomes the Financial Conduct Authority’s work to date to better understand why banks might reject or close bank accounts. Where the FCA has found areas where firms need to improve customer outcomes, the government expects firms to consider the FCA’s findings and act accordingly.
Separately, the Treasury concluded a call for evidence in April 2023 which found deficiencies in the rules applying to bank account closures. In June 2025, the government therefore legislated to require banks and other providers to give customers a longer notice period of at least 90 days before terminating services and to provide a sufficiently detailed and specific explanation.
These changes will give people and businesses the time and information they need to challenge decisions or find an alternative provider.
Economic Secretary (HM Treasury)
The government recognises that access to banking services is vital for people and businesses across the UK and is a matter of concern for certain sectors such as cryptoasset firms and their customers.
The government continues to engage with the banking sector and affected industries to better understand the existing and emerging issues in this area.
The government also welcomes the Financial Conduct Authority’s work to date to better understand why banks might reject or close bank accounts. Where the FCA has found areas where firms need to improve customer outcomes, the government expects firms to consider the FCA’s findings and act accordingly.
Separately, the Treasury concluded a call for evidence in April 2023 which found deficiencies in the rules applying to bank account closures. In June 2025, the government therefore legislated to require banks and other providers to give customers a longer notice period of at least 90 days before terminating services and to provide a sufficiently detailed and specific explanation.
These changes will give people and businesses the time and information they need to challenge decisions or find an alternative provider.
Economic Secretary (HM Treasury)
The government recognises that access to banking services is vital for people and businesses across the UK and is a matter of concern for certain sectors such as cryptoasset firms and their customers.
The government continues to engage with the banking sector and affected industries to better understand the existing and emerging issues in this area.
The government also welcomes the Financial Conduct Authority’s work to date to better understand why banks might reject or close bank accounts. Where the FCA has found areas where firms need to improve customer outcomes, the government expects firms to consider the FCA’s findings and act accordingly.
Separately, the Treasury concluded a call for evidence in April 2023 which found deficiencies in the rules applying to bank account closures. In June 2025, the government therefore legislated to require banks and other providers to give customers a longer notice period of at least 90 days before terminating services and to provide a sufficiently detailed and specific explanation.
These changes will give people and businesses the time and information they need to challenge decisions or find an alternative provider.
Economic Secretary (HM Treasury)
The Government understands the importance of face-to-face banking to communities and high streets across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 230 hubs have been announced so far, and over 160 are already open.
The commitment to open 350 banking hubs by the end of this Parliament is not a limit. Cash Access UK will deploy a banking hub wherever LINK, the industry coordinating body responsible for making access to cash assessments following a community request or branch closure, suggests one is appropriate.
Economic Secretary (HM Treasury)
HM Treasury works in close coordination with the Bank of England, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), monitoring the resilience of the banking sector and the overall stability of consumer credit markets, including motor finance. Regular stress testing by the Bank of England shows the UK banking system remains strong, resilient, and well capitalised. HM Treasury continuously monitors risks across the financial sector and escalates its response where appropriate in coordination with the independent financial authorities.
Economic Secretary (HM Treasury)
The government does not currently plan to require large companies to publish their country-by-country reports. The government keeps tax policy under review but believes that public country-by-country reporting should apply consistently across all multinationals, and therefore an approach should be developed internationally.
More widely, the government’s ambition is to design out non-compliance in the tax system and make the tax system easier and quicker to deal with for taxpayers, delivering the modern and digital service taxpayers expect.
Financial Secretary (HM Treasury)
Consumer confidence, as measured by the commonly used GfK survey, rose by 3 points in May 2025, with all sub-components recording an improvement in sentiment. The Government monitors consumer confidence alongside other relevant economic indicators for understanding developments in the UK economy.
Consumer confidence is intrinsically linked to household finances and the broader economic outlook. The Government is delivering on its commitments in the Plan for Change to raise growth and living standards. This is already delivering for working people, with three new trade deals protecting jobs, boosting investment and cutting prices, a pay rise for three million workers through the National Living Wage, and real wages rising by more since the election than in the first ten years of the previous Government.
Financial Secretary (HM Treasury)
The Government believes it is important for card fees to be set at an appropriate level for all parties.
In May, the Competition Appeal Tribunal approved a settlement which would allow consumers to claim compensation in relation to historical card fees. It will be for individuals to come forward and claim compensation once further information is made available.
Financial Secretary (HM Treasury)
On 9 June the Government announced that, from this winter 2025-26, Winter Fuel Payment eligibility will be expanded in England and Wales. Pensioners with incomes below or equal to £35,000 will benefit from a Winter Fuel Payment.
This will mean that the vast majority of pensioners - over three quarters, or 9 million individuals - will benefit from a Winter Fuel Payment throughout this parliament. This change ensures that the means-testing of winter fuel payments has no effect on pensioner poverty.
We estimate that around £450m per year will be recovered via the tax system or from individuals opting out of receiving the Winter Fuel Payment. This is subject to OBR certification when this policy is scored this Autumn.
Chief Secretary to the Treasury
The government will provide £410 million per year by 2028-29 to expand Free School Meals eligibility from September 2026 to all pupils in England with a parent receiving Universal Credit.
The Barnett formula will apply in the normal way; education is a devolved matter and so the Welsh Government is responsible for Free School Meals policy in Wales.
Chief Secretary to the Treasury
Tax-Free Childcare (TFC) has been designed with the specific policy aim of supporting parents to return to paid work or work more. For every £8 parents pay into their childcare account, the Government adds £2 up to a maximum of £2,000 in top up per year for each child up to age 11 and up to £4,000 per disabled child until they are 16.
TFC covers a wide range of parents who may not be covered by other offers, and take-up has steadily increased since its introduction in 2017. During the 2024 to 2025 financial year, the government provided top-ups to approximately 826,000 families for 1,085,000 children, an increase of almost 100,000 families from the previous year.
Chief Secretary to the Treasury
The government is establishing a Growth Mission Fund to directly support local economic growth. This fund will invest £240 million of capital from 2026/27 to 2029/30 in projects that enable local job creation and the economic regeneration of local communities. Further detail on this fund and the criteria that will be applied for project selection will be set out in due course.
Economic Secretary (HM Treasury)
Table 5.17 of the Spending Review 2025 document refers to an estimated average annual real-terms growth rate for Local Authority (LA) Core Spending Power of 3.1% per year from 2023-24 to 2028-29. The approach to council tax within these estimates is in line with standard practice for LA Core Spending Power figures published by the Ministry of Housing, Communities and Local Government: https://www.gov.uk/government/publications/explanatory-note-on-core-spending-power-final-local-government-finance-settlement-2025-to-2026/explanatory-note-on-core-spending-power-final-local-government-finance-settlement-2025-to-2026.
As also set out in Table 5.17, the estimated average annual real terms increase in grant funding between 2023-24 and 2028-29 for the Local Government Departmental Expenditure Limit (DEL) budget will be 5.2%. Between 2025-26 and 2028-29, it will be 1.1%.
Chief Secretary to the Treasury
There are 20 public service pension schemes in the UK for NHS workers, teachers, the armed forces, the police, firefighters, the judiciary, local government workers and civil servants. Published actuarial valuations are completed every 4 years (or every 3 years in the case of the Local Government Pension Schemes in England and Wales, Northern Ireland and Scotland) and set the employer contribution rates.
Across those schemes there will be thousands of different employer contribution rates specified during the period 1999/2000 to 2025/2026 and the Government does not hold a summary of all of the information requested. Employee contribution rates for each of the schemes are set out in scheme regulations laid before Parliament.
There are also public service pension schemes for Westminster MPs and ministers, and equivalent schemes for Scotland, Wales and Northern Ireland, which are also required to publish their employer contribution rates. The service costs of the schemes are set out in their annual accounts.
Financial Secretary (HM Treasury)
Police core spending power refers to the projected total police settlement funding for Counter Terrorism Police and Territorial Police. The Phase 2 settlement provides an average 1.7% real terms increase per year in police spending power. Over the SR period, police spending power is projected to increase by an average 2.3% per year in real terms. The average real terms increase to police core spending power over the SR period was calculated based on the GDP deflator as of Spring Statement 2025.
Police core spending power includes projected spending from additional income, including estimated funding from the police council tax precept. However, this remains subject to final decision on precept levels and individual police and crime commissioner decisions. The final police precept level and core government funding will be set out in the annual police funding settlement in the usual way.
Chief Secretary to the Treasury
At the Spending Review 2025, the Barnett formula was applied at department level using departmental comparability factors. This means that Barnett consequentials generated in relation to specific programmes cannot be determined.
The UK Government is responsible for heavy rail infrastructure across England and Wales and so directly spends money on this in Wales rather than funding the Welsh Government to do so through the Barnett formula.
This approach applies to our investment in rail in England and is consistent with the funding arrangements for all other policy areas reserved in Wales as set out in the Statement of Funding Policy.
As part of the Spending Review, the Chancellor announced at least £445m for railways in Wales over ten years, including new funding for Burns Review stations, North Wales Level Crossing, Padeswood Sidings and Cardiff West Junction.
The UK Government continues to work closely with the Welsh Government, including open discussions with HM Treasury to provide clarity on changes that have an impact on their funding, and to ensure the smooth delivery of funding arrangements.
Financial Secretary (HM Treasury)
At the Spending Review 2025, the Barnett formula was applied at department level using departmental comparability factors. This means that Barnett consequentials generated in relation to specific programmes cannot be determined.
The UK Government is responsible for heavy rail infrastructure across England and Wales and so directly spends money on this in Wales rather than funding the Welsh Government to do so through the Barnett formula.
This approach applies to our investment in rail in England and is consistent with the funding arrangements for all other policy areas reserved in Wales as set out in the Statement of Funding Policy.
As part of the Spending Review, the Chancellor announced at least £445m for railways in Wales over ten years, including new funding for Burns Review stations, North Wales Level Crossing, Padeswood Sidings and Cardiff West Junction.
The UK Government continues to work closely with the Welsh Government, including open discussions with HM Treasury to provide clarity on changes that have an impact on their funding, and to ensure the smooth delivery of funding arrangements.
Financial Secretary (HM Treasury)
At the Budget last Autumn, the government set out a clear fiscal strategy to stabilise the public finances and underpin growth. This involved introducing new fiscal rules which provide stability, put the public finances on a sustainable path and ensure our public services are sustainably funded.
The fiscal rules set in the Autumn have supported the step change needed in investment, kick starting a decade of national renewal. For the first time, the fiscal rules recognise where financial assets generate future returns. At SR25, the government allocated an additional £9.6 billion in financial transactions to good value-for-money investment opportunities identified through the Spending Review process, subject to the robust guardrails set out in the financial transaction control framework.
The Treasury does not publish forecasts of the economy or public finances; the Office for Budget Responsibility (OBR) is the UK’s official forecaster and provides independent analysis of the UK’s public finances. In its March forecast, the OBR confirmed that the government is on track to meet its fiscal rules, thanks to decisive action taken by the government to put the public finances on a sustainable trajectory and grow the economy.
The OBR will publish an updated forecast later this year in the usual way.
Economic Secretary (HM Treasury)
Every department has undertaken a line-by-line review of its spending, committing to deliver at least 5% efficiencies and savings by the end of this Spending Review period. These efficiencies and savings are integral to department’s settlements. As part of the Spending Review, the OVFM have worked with departments to agree efficiency plans showing how almost £14bn of efficiencies will be delivered by 2028-29. These efficiencies contribute to the 5% and are set out in the Spending Review 2025 document.
These efficiencies and savings will now be delivered by departments as they plan and deliver their budgets for the years covered by the spending review.
Chief Secretary to the Treasury