HM Treasury
HM Treasury is the government’s economic and finance ministry, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth.
Shadow Ministers / Spokeperson
Liberal Democrat
Baroness Kramer (LD - Life peer)Liberal Democrat Lords Spokesperson (Treasury and Economy)
Daisy Cooper (LD - St Albans)
Liberal Democrat Spokesperson (Treasury)
Conservative
Mel Stride (Con - Central Devon)Shadow Chancellor of the Exchequer
Green Party
Adrian Ramsay (Green - Waveney Valley)Green Spokesperson (Treasury)
Liberal Democrat
Charlie Maynard (LD - Witney)Liberal Democrat Spokesperson (Chief Secretary to the Treasury)
Junior Shadow Ministers / Deputy Spokesperson
Conservative
Lord Altrincham (Con - Excepted Hereditary)Shadow Minister (Treasury)
Richard Fuller (Con - North Bedfordshire)
Shadow Chief Secretary to the Treasury
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
Lord Livermore (Lab - Life peer)Financial Secretary (HM Treasury)
James Murray (LAB - Ealing North)
Chief Secretary to the Treasury
Lord Stockwood (Lab - Life peer)
Minister of State (HM Treasury)
Parliamentary Under-Secretaries of State
Torsten Bell (Lab - Swansea West)Parliamentary Secretary (HM Treasury)
Dan Tomlinson (Lab - Chipping Barnet)
Exchequer Secretary (HM Treasury)
Lucy Rigby (Lab - Northampton North)
Economic Secretary (HM Treasury)
10:15
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, pursuant to the Answer of 18 September 2025 to Question 76734 on money …
These Regulations amend the Public Offers and Admissions to Trading Regulations 2024 (S.I. 2024/105) (“the 2024 Regulations”) and contain consequential …
A Bill to Authorise the use of resources for the year ending with 31 March 2026; to authorise both the …
HM Treasury Commons Appearances
Oral Answers to Questions is a regularly scheduled appearance where the Secretary of State and junior minister will answer at the Dispatch Box questions from backbench MPs
Other Commons Chamber appearances can be:- Urgent Questions where the Speaker has selected a question to which a Minister must reply that day
- Adjornment Debates a 30 minute debate attended by a Minister that concludes the day in Parliament.
- Oral Statements informing the Commons of a significant development, where backbench MP's can then question the Minister making the statement.
Westminster Hall debates are performed in response to backbench MPs or e-petitions asking for a Minister to address a detailed issue
Written Statements are made when a current event is not sufficiently significant to require an Oral Statement, but the House is required to be informed.
Bills currently before Parliament
HM Treasury does not have Bills currently before Parliament
Acts of Parliament created in the 2024 Parliament
A Bill to Authorise the use of resources for the year ending with 31 March 2026; to authorise both the issue of sums out of the Consolidated Fund and the application of income for that year; and to appropriate the supply authorised for that year by this Act and by the Supply and Appropriation (Anticipation and Adjustments) Act 2025.
This Bill received Royal Assent on 21st July 2025 and was enacted into law.
A Bill to make provision about secondary Class 1 contributions.
This Bill received Royal Assent on 3rd April 2025 and was enacted into law.
A Bill to make provision about finance.
This Bill received Royal Assent on 20th March 2025 and was enacted into law.
A Bill to amend the Crown Estate Act 1961.
This Bill received Royal Assent on 11th March 2025 and was enacted into law.
A Bill to Authorise the use of resources for the years ending with 31 March 2024, 31 March 2025 and 31 March 2026; to authorise the issue of sums out of the Consolidated Fund for those years; and to appropriate the supply authorised by this Act for the years ending with 31 March 2024 and 31 March 2025.
This Bill received Royal Assent on 11th March 2025 and was enacted into law.
A Bill to make provision for loans or other financial assistance to be provided to, or for the benefit of, the government of Ukraine.
This Bill received Royal Assent on 16th January 2025 and was enacted into law.
A Bill to impose duties on the Treasury and the Office for Budget Responsibility in respect of the announcement of fiscally significant measures.
This Bill received Royal Assent on 10th September 2024 and was enacted into law.
A Bill to authorise the use of resources for the year ending with 31 March 2025; to authorise both the issue of sums out of the Consolidated Fund and the application of income for that year; and to appropriate the supply authorised for that year by this Act and by the Supply and Appropriation (Anticipation and Adjustments) Act 2024.
This Bill received Royal Assent on 30th July 2024 and was enacted into law.
HM Treasury - Secondary Legislation
Petitions
e-Petitions are administered by Parliament and allow members of the public to express support for a particular issue.
If an e-petition reaches 10,000 signatures the Government will issue a written response.
If an e-petition reaches 100,000 signatures the petition becomes eligible for a Parliamentary debate (usually Monday 4.30pm in Westminster Hall).
(9,162 in the last 7 days)
(6,253 in the last 7 days)
(1,487 in the last 7 days)
(1,377 in the last 7 days)
(899 in the last 7 days)
(145 in the last 7 days)
(1,487 in the last 7 days)
(681 in the last 7 days)
(1,377 in the last 7 days)
(9,162 in the last 7 days)
Petition Closed
Raise the income tax personal allowance from £12,570 to £20,000
Gov Responded - 20 Feb 2025 Debated on - 12 May 2025closed 3 months, 3 weeks ago
Raise the income tax personal allowance from £12570 to £20000. We think this would help low earners to get off benefits and allow pensioners a decent income.
Petition Closed
Don't change inheritance tax relief for working farms
Gov Responded - 5 Dec 2024 Debated on - 10 Feb 2025closed 5 months 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 4 months, 1 week 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
AI in financial services
15 Oct 2025, 2 p.m.
At 2:15pm: Oral evidence
Tom Mutton - Director of Central Bank Digital Currency at Bank of England
Jonathan Hall - External Member, Financial Policy Committee at Bank of England
Jessica Rusu - Chief Data and Information and Intelligence Officer at Financial Conduct Authority
David Geale - Executive Director of Payments and Digital Finance at Financial Conduct Authority
View calendar - Save to Calendar
Treasury Committee - Private Meeting
21 Oct 2025, 9:45 a.m.
View calendar - Save to Calendar
Treasury Committee - Oral evidence
Appointment of Stephen Blyth to the Financial Policy Committee
22 Oct 2025, 2 p.m.
View calendar - Save to Calendar
Treasury Committee: 14 Current Inquiries
Treasury Committee: Previous Inquiries
50 most recent Written Questions
(View all written questions)HM Treasury does not produce forecasts for the UK economy. Forecasting the economy, including the impact of Government policy decisions, is the responsibility of the independent Office for Budget Responsibility (OBR), which published its latest forecast on 26 March 2025. The OBR does not publish estimates of the impact of policy decisions on levels of food and drink inflation. The Chancellor has asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions support stability and long-term growth.
Economic Secretary (HM Treasury)
The Office for National Statistics does not publish inflation statistics at the level of individual constituencies such as Epping Forest. However, the Government understands that inflation remains a challenge for businesses, including farmers, and consumers. This is why the Chancellor has asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions support stability and long-term growth.
Economic Secretary (HM Treasury)
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
The Government currently provides VAT reliefs to aid the purchase of defibrillators. For example, when an Automated External Defibrillator is purchased with funds provided by a charity and then donated to an eligible body, no VAT is charged. Furthermore, all state schools in England have been fitted with AEDs.
Exchequer Secretary (HM Treasury)
The Government is committed to reducing non-compliance in the tax system and HMRC continues to tackle non-compliance across all areas of the economy, including VAT.
Businesses providing personal care services, including hairdressers and barbers often operate using the ‘rent-a-chair’ business model. This unique but legitimate business model, unless applied correctly, can result in individuals being wrongly classed as self-employed for employment purposes.
HMRC are committed to tackling false self-employment and will investigate evidence that suggests businesses have misclassified individuals for tax purposes. HMRC will challenge businesses that either artificially separate to avoid exceeding the VAT registration threshold or design schemes to reduce the amount of VAT they owe and will take steps to ensure that they pay the right amount of tax.
Exchequer Secretary (HM Treasury)
The Government consulted on proposals to simplify the current gambling tax system. Responses are now being analysed and a response to the consultation will be published at Autumn Budget 2025. If any changes are made to gambling duties at a future Budget following the consultation, they will be accompanied by a Tax Information and Impact Note which will set out the expected impacts.
This government recognises the social and cultural value of horseracing, which is why we exempt on course horserace betting from duty, with no plans to change this. We are working with the horse racing sector to identify possible unintended consequences and mitigations.
Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The Government recognises the concerns raised about the loan charge. The independent review examined the barriers that prevent those people subject to the loan charge from reaching resolution with HMRC.
HMRC continues to provide support for those affected, with agreed manageable payment plans and a well-established Extra Support Service. It has guidance and training in place for all customer advisors or settlement teams on identifying taxpayers who need extra support and providing reasonable adjustments to meet their needs.
Exchequer Secretary (HM Treasury)
From 1 January 2027, the UK Carbon Border Adjustment Mechanism (CBAM) will apply to specific goods imported from the aluminium, cement, fertiliser, hydrogen, and iron & steel sectors. The specific goods are listed in the Government response to the consultation on the ‘Introduction of a UK Carbon Border Adjustment Mechanism’, which is available at: Consultation on the introduction of a UK carbon border adjustment mechanism - GOV.UK. There are no plans for exemptions from this list.
The UK CBAM is designed to address the risk of carbon leakage and to ensure that CBAM goods which are imported from overseas face a comparable carbon price to what is paid by manufacturers producing the same goods in the UK.
Exchequer Secretary (HM Treasury)
HMRC estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. These statistics are published annually and are available at: Measuring tax gaps 2025 edition: tax gap estimates for 2023 to 2024 - GOV.UK (www.gov.uk). The latest estimate for England and Northern Ireland of the Landfill Tax gap is 22.6% of the theoretical Landfill Tax liabilities, or £150 million in absolute terms, for the 2023 to 2024 tax year.
In the last 5 years, HMRC Landfill Tax compliance activities have generated a compliance yield of £1.3 billion.
Exchequer Secretary (HM Treasury)
The Government values the significant contribution made by hospitality businesses to economic growth and social life in the UK.
The Government closely monitors the health of different sectors across the UK economy and regularly engages with the hospitality sector. The recent Spending Review set out our new long-term local growth programmes to invest in communities across the UK, including to support local high streets and their hospitality businesses.
The hospitality sector makes significant contribution the exchequer, the UK economy, and society. We are determined to support hospitality businesses to succeed. We will introduce a permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026-27. Ahead of the new multipliers being introduced, we extended the RHL relief for 2025-26 at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
In addition, we:
- increased the Employment Allowance to £10,500;
- established the Licensing Taskforce and issued a call for evidence on a National Licensing Policy Framework which will set out national direction for licensing authorities to consider economic growth and cultural value,
- introduced the English Devolution Bill, which will protect hospitality businesses from upward only rent clauses, and;
- are introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs.
We will continue to work with the hospitality sector to help drive economic growth, regenerate our high streets, and support vibrant and healthy communities across the UK.
Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government renewed the commitment to a tobacco duty escalator, which increases duty by 2 per cent above RPI inflation at each Budget, until the end of the current Parliament. This is part of the Government’s focus on health prevention and to continue our drive to reduce smoking prevalence.
Tax changes are accompanied by a Tax Information and Impact Note which sets out the expected impacts on various groups.
Changes to tobacco duty rates from 30 October 2024 - GOV.UK
Exchequer Secretary (HM Treasury)
Special category codes (SCAT) identify the type of property, not the valuation methodology adopted. They cannot be used to identify the valuation method because for some property types a receipts and expenditure, contractor’s or rental comparison methods may all have been used.
The valuation methods used for different property types are set out on gov.uk here: Business Rates – Valuation Office Agency
Exchequer Secretary (HM Treasury)
HMRC has a strategy to become a digital-first organisation with a minimum of 90% of interactions undertaken digitally by 2029 to 2030, as set out in the HMRC Transformation Roadmap. HMRC's Transformation Roadmap - GOV.UK
Annex A of the Roadmap sets out the metrics that will be used to measure progress, including on compliance, and these will be reported in HMRC’s Annual Report and Accounts
Exchequer Secretary (HM Treasury)
HMRC supports its customers by providing accessible digital services, tailored help for those with additional needs, and clear guidance to manage their tax affairs confidently.
VAT Notice 701/7 - Reliefs from VAT for disabled and older people explains which goods and services for disabled people are zero-rated for VAT, and which mobility aids for people aged 60 or over are reduced-rated (subject to VAT at a rate of 5%).
HMRC guidance in VAT Notice 701/2 - Welfare services and goods explains the reliefs available for individuals with permanent disabilities. The VAT exemption applies to care provided to disabled individuals by organisations that are public bodies, charities, or state-regulated institutions.
HMRC keeps its guidance under review for accuracy and usability, providing updates in relation to changes in policy and processes.
Exchequer Secretary (HM Treasury)
In 2023, the courts decided that sports and leisure services supplied by local authorities are non-business activities and are not subject to VAT.
There was no change in the VAT treatment of gym membership. However, before the change was implemented for local authority services, HMRC analysed in detail the relevant economic circumstances of the sports and leisure sector, and the conclusion was that removing the requirement to charge VAT on local authority sports and leisure activities would not significantly distort competition in the sector, partly because the sector was already subject to significant structural variations for reasons not confined to tax or VAT.
Following the 2023 change, HMRC held a series of positive meetings with stakeholders from the sector to address any concerns or questions that they had about the change.
Exchequer Secretary (HM Treasury)
The Government consultation on proposals to simplify the current gambling tax system by merging the three current taxes that cover remote (including online) gambling closed on 21 July 2025. Responses are now being analysed and a response to the consultation will be published at Autumn Budget 2025.
The Chancellor takes decisions on tax policy at fiscal events. If any changes are made to gambling duties at Budget following the consultation, legislation will be accompanied by a Tax Information and Impact Note which will set out the expected impacts.
Exchequer Secretary (HM Treasury)
HMRC issues specific guidance for estate agency businesses and those letting agency businesses within scope of the Money Laundering Regulations, to help them comply. This is available on GOV.UK.
Exchequer Secretary (HM Treasury)
The residence nil-rate band was introduced under the previous Government in April 2017. The then Government set out in a tax information and impact note at the time of its introduction that there was no evidence to suggest that this policy would have significant adverse impacts on those with protected characteristics under the Equality Act 2010. The tax information and impact note is available at www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band.
HMRC publishes annual statistics about the use of nil-rate bands, reliefs and exemptions. 30,600 estates used the residence nil-rate band in 2022-23, and £7.72 billion of chargeable estate value was removed from an inheritance tax charge as a result. HMRC does not collect comprehensive data about the reasons for an estate not using the residence nil-rate band.
Exchequer Secretary (HM Treasury)
The residence nil-rate band was introduced under the previous Government in April 2017. The then Government set out in a tax information and impact note at the time of its introduction that there was no evidence to suggest that this policy would have significant adverse impacts on those with protected characteristics under the Equality Act 2010. The tax information and impact note is available at www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band.
HMRC publishes annual statistics about the use of nil-rate bands, reliefs and exemptions. 30,600 estates used the residence nil-rate band in 2022-23, and £7.72 billion of chargeable estate value was removed from an inheritance tax charge as a result. HMRC does not collect comprehensive data about the reasons for an estate not using the residence nil-rate band.
Exchequer Secretary (HM Treasury)
The Chancellor’s decision at Autumn Budget 2024 to cut duty for draught products, whilst uprating alcohol duty in line with inflation for main rate products balanced the need to fund public services, disincentivise harmful alcohol consumption, and support moderate, responsible drinkers with the cost of living.
This kept the tax on non-draught products stable in real terms, which the Government does not expect to have any significant macroeconomic impacts. The Tax Impact and Information Note (TIIN) for this decision is available here:
To support spirits producers, the Government has:
- agreed a trade deal with India which will reduce tariffs on gin and whisky exports from 150% to 75% initially, and then 40% over time;
- ended the alcohol duty stamps scheme on 1 May 2025, reducing the administrative burden on spirit producers and importers, including Scotch Whisky distilleries;
- invested £5m in the Spirits Drink Verification Scheme (SDVS) to enable HMRC to cut the fees it charges producers for its verification service.
Exchequer Secretary (HM Treasury)
Graham Leadbitter
(Scottish National Party - Moray West, Nairn and Strathspey)
The Chancellor’s decision at Autumn Budget 2024 to cut duty for draught products, whilst uprating alcohol duty in line with inflation for main rate products balanced the need to fund public services, disincentivise harmful alcohol consumption, and support moderate, responsible drinkers with the cost of living.
This kept the tax on non-draught products stable in real terms, which the Government does not expect to have any significant macroeconomic impacts. The Tax Impact and Information Note (TIIN) for this decision is available here:
To support spirits producers, the Government has:
- agreed a trade deal with India which will reduce tariffs on gin and whisky exports from 150% to 75% initially, and then 40% over time;
- ended the alcohol duty stamps scheme on 1 May 2025, reducing the administrative burden on spirit producers and importers, including Scotch Whisky distilleries;
- invested £5m in the Spirits Drink Verification Scheme (SDVS) to enable HMRC to cut the fees it charges producers for its verification service.
Exchequer Secretary (HM Treasury)
Graham Leadbitter
(Scottish National Party - Moray West, Nairn and Strathspey)
The Chancellor’s decision at Autumn Budget 2024 to cut duty for draught products, whilst uprating alcohol duty in line with inflation for main rate products balanced the need to fund public services, disincentivise harmful alcohol consumption, and support moderate, responsible drinkers with the cost of living.
This kept the tax on non-draught products stable in real terms, which the Government does not expect to have any significant macroeconomic impacts. The Tax Impact and Information Note (TIIN) for this decision is available here:
To support spirits producers, the Government has:
- agreed a trade deal with India which will reduce tariffs on gin and whisky exports from 150% to 75% initially, and then 40% over time;
- ended the alcohol duty stamps scheme on 1 May 2025, reducing the administrative burden on spirit producers and importers, including Scotch Whisky distilleries;
- invested £5m in the Spirits Drink Verification Scheme (SDVS) to enable HMRC to cut the fees it charges producers for its verification service.
Exchequer Secretary (HM Treasury)
Graham Leadbitter
(Scottish National Party - Moray West, Nairn and Strathspey)
The Chancellor’s decision at Autumn Budget 2024 to cut duty for draught products, whilst uprating alcohol duty in line with inflation for main rate products balanced the need to fund public services, disincentivise harmful alcohol consumption, and support moderate, responsible drinkers with the cost of living.
This kept the tax on non-draught products stable in real terms, which the Government does not expect to have any significant macroeconomic impacts. The Tax Impact and Information Note (TIIN) for this decision is available here:
To support spirits producers, the Government has:
- agreed a trade deal with India which will reduce tariffs on gin and whisky exports from 150% to 75% initially, and then 40% over time;
- ended the alcohol duty stamps scheme on 1 May 2025, reducing the administrative burden on spirit producers and importers, including Scotch Whisky distilleries;
- invested £5m in the Spirits Drink Verification Scheme (SDVS) to enable HMRC to cut the fees it charges producers for its verification service.
Exchequer Secretary (HM Treasury)
Following public consultation, a new duty structure for alcohol products was introduced in August 2023.
The alcohol duty system taxes all alcohol products according to their strength, so the duty owed increases with alcohol content. The system is also progressive, ensuring that higher strength products pay proportionately more tax
The 2023 reforms significantly reduced previous inconsistencies in treatment between different types of alcohol product and introduced two new reliefs: Draught Relief (DR); and Small Producer Relief (SPR).
DR enables products served on draught below 8.5 per cent alcohol by volume (ABV) to pay less duty. This relief provides support to pubs and other hospitality venues, as well as helping producers of eligible products.
At Autumn Budget 2024, the Chancellor made DR more generous by cutting draught rates by 1.7%, taking a penny of duty off a typical strength pint.
SPR replaced and extended the previous Small Brewers Relief. SPR supports SMEs and new entrants by permitting smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5 per cent ABV.
HMRC plans to evaluate the new rates and structures three years after the changes took effect on 1 August 2023. This will allow time for HMRC to gather a broad range of data. The Government welcomes evidence from industry on the impact of the changes so far.
Exchequer Secretary (HM Treasury)
Following public consultation, a new duty structure for alcohol products was introduced in August 2023.
The alcohol duty system taxes all alcohol products according to their strength, so the duty owed increases with alcohol content. The system is also progressive, ensuring that higher strength products pay proportionately more tax
The 2023 reforms significantly reduced previous inconsistencies in treatment between different types of alcohol product and introduced two new reliefs: Draught Relief (DR); and Small Producer Relief (SPR).
DR enables products served on draught below 8.5 per cent alcohol by volume (ABV) to pay less duty. This relief provides support to pubs and other hospitality venues, as well as helping producers of eligible products.
At Autumn Budget 2024, the Chancellor made DR more generous by cutting draught rates by 1.7%, taking a penny of duty off a typical strength pint.
SPR replaced and extended the previous Small Brewers Relief. SPR supports SMEs and new entrants by permitting smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5 per cent ABV.
HMRC plans to evaluate the new rates and structures three years after the changes took effect on 1 August 2023. This will allow time for HMRC to gather a broad range of data. The Government welcomes evidence from industry on the impact of the changes so far.
Exchequer Secretary (HM Treasury)
Graham Leadbitter
(Scottish National Party - Moray West, Nairn and Strathspey)
Following public consultation, a new duty structure for alcohol products was introduced in August 2023.
The alcohol duty system taxes all alcohol products according to their strength, so the duty owed increases with alcohol content. The system is also progressive, ensuring that higher strength products pay proportionately more tax
The 2023 reforms significantly reduced previous inconsistencies in treatment between different types of alcohol product and introduced two new reliefs: Draught Relief (DR); and Small Producer Relief (SPR).
DR enables products served on draught below 8.5 per cent alcohol by volume (ABV) to pay less duty. This relief provides support to pubs and other hospitality venues, as well as helping producers of eligible products.
At Autumn Budget 2024, the Chancellor made DR more generous by cutting draught rates by 1.7%, taking a penny of duty off a typical strength pint.
SPR replaced and extended the previous Small Brewers Relief. SPR supports SMEs and new entrants by permitting smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5 per cent ABV.
HMRC plans to evaluate the new rates and structures three years after the changes took effect on 1 August 2023. This will allow time for HMRC to gather a broad range of data. The Government welcomes evidence from industry on the impact of the changes so far.
Exchequer Secretary (HM Treasury)
The baseline assumption, shared by the Government and the Office for Budget Responsibility, is that alcohol duty will be increased annually in line with the Retail Price Index, so that it does not fall in real terms.
As with all taxes, the Government welcomes representations from stakeholders to inform policy development.
The Chancellor makes decisions on tax policy at fiscal events, and her fiscal rules require day-to-day spending to be fully paid for through tax receipts.
Exchequer Secretary (HM Treasury)
The baseline assumption, shared by the Government and the Office for Budget Responsibility, is that alcohol duty will be increased annually in line with the Retail Price Index, so that it does not fall in real terms.
As with all taxes, the Government welcomes representations from stakeholders to inform policy development.
The Chancellor makes decisions on tax policy at fiscal events, and her fiscal rules require day-to-day spending to be fully paid for through tax receipts.
Exchequer Secretary (HM Treasury)
The Government values the significant contribution made by hospitality businesses to economic growth and social life in the UK.
HMRC does not hold aggregated data on the financial contribution of the hospitality sector to the Exchequer, but sectoral breakdowns for individual taxes can be found on gov.UK.
Exchequer Secretary (HM Treasury)
The Government applies Landfill Tax to disposals made at sites without an environmental disposal permit (unauthorised waste sites). This aims to deter non-compliance by making the illegal disposal of waste less profitable, and reinforcing the principle of “polluter pays”.
In the last 5 years, HMRC Landfill Tax compliance activities have generated a compliance yield of £1.3 billion.
HMRC have conducted over 250 compliance interventions over the last three years at illegal unauthorised waste sites, generating approximately £4.5 million in compliance yield.
HMRC also works closely with environmental regulators to identify and tackle disposals of unauthorised waste.
Exchequer Secretary (HM Treasury)
This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels, and batteries. This will be vital to making the UK more energy resilient and meeting our 2050 Net Zero commitment.
Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. This includes most construction works. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Exchequer Secretary (HM Treasury)
Strong enforcement is essential in tackling the illicit tobacco market. HM Revenue and Customs and Border Force have had illicit tobacco strategies in place since 2000. Our latest strategy, “Stubbing out the problem”, was published in January 2024. The Department continues to investigate how the illicit tobacco market is evolving, including through its compliance activity, and the extent to which that may affect overall tax receipts seen.
The illicit tobacco market is dominated by organised crime groups that make money by smuggling and selling illicit tobacco products in the UK. Our latest estimate is that illicit tobacco costs the UK £1.8bn in lost revenue per year. HMRC recently published an updated version of their Measuring Tax Gaps publication which now includes tax gap estimates up to 2023/24. The illicit market volume for cigarettes is shown in Table 3.13 and the total consumption volume is shown in Table 3.12. The illicit market for hand rolling tobacco is shown in Table 3.17 and the total consumption volume is shown in Table 3.16.
Whilst tobacco duty has been progressively increased over time, successive illicit tobacco strategies have proven effective in tackling the size of the illicit tobacco market, reducing the tobacco duty tax gap from 21.7% in 2005/6 to 13.8% in 2023/24.
Tobacco duty raised almost £8 billion in 2024/25. High duty rates, making tobacco less affordable, have helped reduce smoking prevalence. ‘Cancer in the UK: Overview 2025’ published by Cancer Research cites an Office for National Statistics Adult Smoking Habits publication which shows that the percentage of adult smokers in the UK decreased from 20.2% in 2011 to 11.9% in 2023. The ONS smoking prevalence data shows the percentage of adults in the UK who smoke cigarettes but does not give any indication of how much or how often these adults smoke.
Exchequer Secretary (HM Treasury)
Strong enforcement is essential in tackling the illicit tobacco market. HM Revenue and Customs and Border Force have had illicit tobacco strategies in place since 2000. Our latest strategy, “Stubbing out the problem”, was published in January 2024. The Department continues to investigate how the illicit tobacco market is evolving, including through its compliance activity, and the extent to which that may affect overall tax receipts seen.
The illicit tobacco market is dominated by organised crime groups that make money by smuggling and selling illicit tobacco products in the UK. Our latest estimate is that illicit tobacco costs the UK £1.8bn in lost revenue per year. HMRC recently published an updated version of their Measuring Tax Gaps publication which now includes tax gap estimates up to 2023/24. The illicit market volume for cigarettes is shown in Table 3.13 and the total consumption volume is shown in Table 3.12. The illicit market for hand rolling tobacco is shown in Table 3.17 and the total consumption volume is shown in Table 3.16.
Whilst tobacco duty has been progressively increased over time, successive illicit tobacco strategies have proven effective in tackling the size of the illicit tobacco market, reducing the tobacco duty tax gap from 21.7% in 2005/6 to 13.8% in 2023/24.
Tobacco duty raised almost £8 billion in 2024/25. High duty rates, making tobacco less affordable, have helped reduce smoking prevalence. ‘Cancer in the UK: Overview 2025’ published by Cancer Research cites an Office for National Statistics Adult Smoking Habits publication which shows that the percentage of adult smokers in the UK decreased from 20.2% in 2011 to 11.9% in 2023. The ONS smoking prevalence data shows the percentage of adults in the UK who smoke cigarettes but does not give any indication of how much or how often these adults smoke.
Exchequer Secretary (HM Treasury)
Strong enforcement is essential in tackling the illicit tobacco market. HM Revenue and Customs and Border Force have had illicit tobacco strategies in place since 2000. Our latest strategy, “Stubbing out the problem”, was published in January 2024. The Department continues to investigate how the illicit tobacco market is evolving, including through its compliance activity, and the extent to which that may affect overall tax receipts seen.
The illicit tobacco market is dominated by organised crime groups that make money by smuggling and selling illicit tobacco products in the UK. Our latest estimate is that illicit tobacco costs the UK £1.8bn in lost revenue per year. HMRC recently published an updated version of their Measuring Tax Gaps publication which now includes tax gap estimates up to 2023/24. The illicit market volume for cigarettes is shown in Table 3.13 and the total consumption volume is shown in Table 3.12. The illicit market for hand rolling tobacco is shown in Table 3.17 and the total consumption volume is shown in Table 3.16.
Whilst tobacco duty has been progressively increased over time, successive illicit tobacco strategies have proven effective in tackling the size of the illicit tobacco market, reducing the tobacco duty tax gap from 21.7% in 2005/6 to 13.8% in 2023/24.
Tobacco duty raised almost £8 billion in 2024/25. High duty rates, making tobacco less affordable, have helped reduce smoking prevalence. ‘Cancer in the UK: Overview 2025’ published by Cancer Research cites an Office for National Statistics Adult Smoking Habits publication which shows that the percentage of adult smokers in the UK decreased from 20.2% in 2011 to 11.9% in 2023. The ONS smoking prevalence data shows the percentage of adults in the UK who smoke cigarettes but does not give any indication of how much or how often these adults smoke.
Exchequer Secretary (HM Treasury)
Receipts data for the Apprenticeship Levy is published by HM Revenue and Customs in their Tax and NIC Receipts publication which can be found online at:
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
Receipts data based on company registered addresses do not reflect where liabilities are accrued or where employees are based. For example, the data on receipts from companies with registered addresses in Northern Ireland will not include businesses registered in Wales, Scotland, or England, who have a presence and pay employees in Northern Ireland.
Chief Secretary to the Treasury
We are creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
From 2026-27, the Government intends to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values (RVs) under £500,000. The Government intends to fund this by introducing a higher multiplier on properties with RVs of £500,000 or more. These high-value properties cover the majority of large distribution warehouses, including those used by the online giants.
The final design of the new multipliers, including the rates, will be set at Budget 2025 so that we can take into account the upcoming revaluation outcomes, as well as the economic and fiscal context. When the new multipliers are set at Budget 2025, we intend to publish analysis of the effects of the new multiplier arrangements.
Exchequer Secretary (HM Treasury)
The tax system contains obligations, set out in law, to ensure that HMRC can collect the correct tax to fund vital public services. HMRC is bound by law to apply penalties where customers do not meet these obligations. Penalties also help to reassure customers who comply with their obligations that HMRC are applying the rules fairly and consistently.
For Self Assessment (SA), HMRC requires the information from customers in their tax returns to determine whether they have Income Tax to pay. Even if a customer has no tax to pay, the information provided can ensure taxpayers receive the benefits to which they are entitled, such as Tax-Free Childcare. The current policy and legislation on SA penalties has been in place since 2011.
The government will soon introduce a new penalty regime for late filing of SA returns and late payment of income tax. As well as reducing the penalties a customer can accumulate for filing late, this will introduce a further safeguard so people will not receive a financial penalty for a single failure to file on time. The penalties will focus on people who repeatedly file late.
Where HMRC charges a penalty, a customer can appeal. HMRC will cancel any penalties where they accept that a taxpayer no longer needs to be in SA or has a reasonable excuse for not filing their return on time.
HMRC regularly reviews its guidance and communications, including making it easier for customers to explain why they were unable to file their return and to inform HMRC if they no longer need to be in SA.
HMRC has dedicated support in place for those facing personal difficulties and encourages anyone struggling to meet their obligations to contact them as soon as possible by phone or online.
Exchequer Secretary (HM Treasury)
The tax system contains obligations, set out in law, to ensure that HMRC can collect the correct tax to fund vital public services. HMRC is bound by law to apply penalties where customers do not meet these obligations. Penalties also help to reassure customers who comply with their obligations that HMRC are applying the rules fairly and consistently.
For Self Assessment (SA), HMRC requires the information from customers in their tax returns to determine whether they have Income Tax to pay. Even if a customer has no tax to pay, the information provided can ensure taxpayers receive the benefits to which they are entitled, such as Tax-Free Childcare. The current policy and legislation on SA penalties has been in place since 2011.
The government will soon introduce a new penalty regime for late filing of SA returns and late payment of income tax. As well as reducing the penalties a customer can accumulate for filing late, this will introduce a further safeguard so people will not receive a financial penalty for a single failure to file on time. The penalties will focus on people who repeatedly file late.
Where HMRC charges a penalty, a customer can appeal. HMRC will cancel any penalties where they accept that a taxpayer no longer needs to be in SA or has a reasonable excuse for not filing their return on time.
HMRC regularly reviews its guidance and communications, including making it easier for customers to explain why they were unable to file their return and to inform HMRC if they no longer need to be in SA.
HMRC has dedicated support in place for those facing personal difficulties and encourages anyone struggling to meet their obligations to contact them as soon as possible by phone or online.
Exchequer Secretary (HM Treasury)
The tax system contains obligations, set out in law, to ensure that HMRC can collect the correct tax to fund vital public services. HMRC is bound by law to apply penalties where customers do not meet these obligations. Penalties also help to reassure customers who comply with their obligations that HMRC are applying the rules fairly and consistently.
For Self Assessment (SA), HMRC requires the information from customers in their tax returns to determine whether they have Income Tax to pay. Even if a customer has no tax to pay, the information provided can ensure taxpayers receive the benefits to which they are entitled, such as Tax-Free Childcare. The current policy and legislation on SA penalties has been in place since 2011.
The government will soon introduce a new penalty regime for late filing of SA returns and late payment of income tax. As well as reducing the penalties a customer can accumulate for filing late, this will introduce a further safeguard so people will not receive a financial penalty for a single failure to file on time. The penalties will focus on people who repeatedly file late.
Where HMRC charges a penalty, a customer can appeal. HMRC will cancel any penalties where they accept that a taxpayer no longer needs to be in SA or has a reasonable excuse for not filing their return on time.
HMRC regularly reviews its guidance and communications, including making it easier for customers to explain why they were unable to file their return and to inform HMRC if they no longer need to be in SA.
HMRC has dedicated support in place for those facing personal difficulties and encourages anyone struggling to meet their obligations to contact them as soon as possible by phone or online.
Exchequer Secretary (HM Treasury)
Different Vehicle Excise Duty (VED) rates apply to cars, vans, motorcycles and HGVs 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.
Since 2001, the VED system has encouraged the uptake of cars with low carbon dioxide (CO2) emissions to help meet the UK's legally binding climate targets. Cars first registered between 1 March 2001 and 31 March 2017 pay VED annually according to CO2 emissions.
From 1 April 2017, new cars pay a variable first year rate according to the emissions of the vehicle, with the most polluting currently paying over £5,400, and zero emission models currently pay £10. After the first year, most cars move to a standard annual rate, currently set at £195.
Exchequer Secretary (HM Treasury)
The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law, and that goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Israel.
Exchequer Secretary (HM Treasury)
It is a long-standing requirement that Israeli preference cannot be claimed on goods if the production conferring originating status has taken place in a location within the territories brought under Israeli administration since June 1967. The Department of Business & Trade has recently updated the list of non-eligible postcodes to reflect the latest position on Israeli Settlements.
HMRC takes a risk-based and intelligence-led approach to customs enforcement. Compliance measures evolve as the picture of risk changes ensuring any interventions are proportionate to the risk. HMRC has confirmed that regular checks are carried out on imports from Israel, and they are subject to verification to check their originating status.
HMRC introduced a new document code on 1 September 2025 to strengthen compliance with existing processes by asking the declarant to confirm imported goods met the conditions to claim preference under the UK-Israel Trade and Partnership Agreement, including alignment with the updated list of non-eligible postcodes.
These actions form part of the ongoing policy advice and review of processes aimed at ensuring the UK’s origin verification procedures remain robust and responsive to developments on the ground; ensuring any interventions are proportionate to the risk. The government remains committed to upholding the integrity of its trade policy and ensuring that goods receiving preferential treatment under trade agreements fully comply with legal and procedural requirements.
Exchequer Secretary (HM Treasury)
Receipts data for the Apprenticeship Levy is published by HM Revenue and Customs in their Tax and NIC Receipts publication which can be found online at:
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
Receipts data based on company registered addresses do not reflect where liabilities are accrued or where employees are based. For example, the data on receipts from companies with registered addresses in Northern Ireland will not include businesses registered in Wales, Scotland, or England, who have a presence and pay employees in Northern Ireland.
Chief Secretary to the Treasury
Exchequer Secretary (HM Treasury)
The training material the Valuation Office Agency (VOA) has produced on the Valuation Operating System is for internal staff use only.
Exchequer Secretary (HM Treasury)
The Valuation Office Agency (VOA) applies the law as it stands when valuing domestic and non-domestic properties.
In relation to solar panels, the legal position is set out in the Rating Manual, which is published on gov.uk: Section 5a: valuation of all property classes - Power generators - Guidance - GOV.UK, in particular Appendix 1: rateability of microgeneration schemes refers.
Exchequer Secretary (HM Treasury)
The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law. Goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Government of Israel.
Where there are doubts about the origin of goods that have been declared as being of Israeli origin, HMRC will undertake checks to verify the origin of those goods to ensure fiscal compliance. HMRC does not however provide specific details regarding checks as it may serve to undermine compliance activity.
Exchequer Secretary (HM Treasury)
The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law. Goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Government of Israel.
Where there are doubts about the origin of goods that have been declared as being of Israeli origin, HMRC will undertake checks to verify the origin of those goods to ensure fiscal compliance. HMRC does not however provide specific details regarding checks as it may serve to undermine compliance activity.
Exchequer Secretary (HM Treasury)
The NATO definition of defence expenditure, and defence and security related expenditure can be found on the NATO website:
NATO - Topic: Defence expenditures and NATO’s 5% commitment
These definitions are used by the UK and all NATO allies when reporting their NATO qualifying expenditure.
Chief Secretary to the Treasury