HM Treasury

The US Government shutdown ended on 12 November 2025. HM Treasury works closely with the Bank of England’s Financial Policy Committee (FPC) and UK financial regulators to assess any risks to the financial sector, including those relating to the global outlook.

The Government is firmly committed to improving public sector productivity and efficiency, as set out in its plans for a more productive and agile state at the Spending Review. At Budget 2024 the Government set a 2% productivity, efficiencies, and savings target for government Departments. The Office for Value for Money and its Chair have worked closely with all departments to agree bespoke and stretching efficiency targets, supported by robust delivery plans. Altogether, the Government will deliver technical efficiencies worth nearly £14 billion a year by 2028–29.

The Pay Review Body (PRB) process is used to set the pay for many public sector workforces. This process is independent from Government and PRBs will consider a range of evidence when forming recommendations on pay. This can include productivity factors, amongst other considerations such as the need to recruit, retain and motivate suitably qualified people.

Pay awards will need to be funded within departmental settlements set out at Spending Review 2025. If the PRBs recommend pay increases above the level departments have budgeted for, departments will need to carefully consider the justification for these awards and determine whether these additional costs can be borne either through offsetting savings or through further productivity gains.

The Government is firmly committed to improving public sector productivity and efficiency, as set out in its plans for a more productive and agile state at the Spending Review. At Budget 2024 the Government set a 2% productivity, efficiencies, and savings target for government Departments. The Office for Value for Money and its Chair have worked closely with all departments to agree bespoke and stretching efficiency targets, supported by robust delivery plans. Altogether, the Government will deliver technical efficiencies worth nearly £14 billion a year by 2028–29.

The Pay Review Body (PRB) process is used to set the pay for many public sector workforces. This process is independent from Government and PRBs will consider a range of evidence when forming recommendations on pay. This can include productivity factors, amongst other considerations such as the need to recruit, retain and motivate suitably qualified people.

Pay awards will need to be funded within departmental settlements set out at Spending Review 2025. If the PRBs recommend pay increases above the level departments have budgeted for, departments will need to carefully consider the justification for these awards and determine whether these additional costs can be borne either through offsetting savings or through further productivity gains.

Banking is changing, with many customers benefitting from the ease and convenience of remote banking. However, Government understands the importance of face-to-face banking to communities and is committed to championing sufficient access for customers. In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 190 are already open. Government is working closely with industry on this commitment.

While decisions on branch provision are commercial decisions for banks themselves, Financial Conduct Authority guidance requires firms to conduct a robust impact analysis. Firms must show they have considered customer needs and identified potential reasonable alternatives. The FCA also expects engagement with stakeholders at least 12 weeks before closure and firms must ensure that any replacement services, such as banking hubs, are in place before a branch closes. These measures aim to ensure closures are implemented fairly and transparently.

As well as bank branches, alternative non-digital options to access everyday banking services include telephone banking and the Post Office. The Post Office Banking Framework allows personal and business customers of participating banks to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK. Beyond branches, banking hubs and Post Office services, some banks also provide points of access through initiatives such as pop-up services in libraries and community centres, or mobile banking vans serving remote areas. The Government supports initiatives which give customers access to in-person banking, as well as digital access.

While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant.

The Block Grant Transparency publication breaks down all changes in the devolved governments’ block grant funding from the 2015 Spending Review up to and including Spending Review 2025.

The most recent report was published in October 2025:

https://www.gov.uk/government/publications/block-grant-transparency-july-2023

UIN 91154 - While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

UIN 91152 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses who work across the UK but have a presence in Wales are not available.

While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

UIN 91151 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses primarily based in Wales are not available.

While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

UIN 91154 - While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

UIN 91152 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses who work across the UK but have a presence in Wales are not available.

While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

UIN 91151 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses primarily based in Wales are not available.

While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

UIN 91154 - While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

UIN 91152 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses who work across the UK but have a presence in Wales are not available.

While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

UIN 91151 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses primarily based in Wales are not available.

While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

Homeowners will have such rights of recourse against insolvent corporate developers as exist under the corporate insolvency regime. The Duchy’s policy is to give an appropriate person or body the opportunity to purchase the property formerly owned by insolvent housing developers. Interested parties may also have the right to apply to Court for a vesting order under a variety of routes (the Trustee Act, Law of Property Act or Companies Act for example).

For communal or shared land, the Duchy co-operates to see the land is disposed of to interested parties directly or via a vesting order.

Homeowners will have such rights of recourse against insolvent corporate developers as exist under the corporate insolvency regime. The Duchy’s policy is to give an appropriate person or body the opportunity to purchase the property formerly owned by insolvent housing developers. Interested parties may also have the right to apply to Court for a vesting order under a variety of routes (the Trustee Act, Law of Property Act or Companies Act for example).

For communal or shared land, the Duchy co-operates to see the land is disposed of to interested parties directly or via a vesting order.

The Crown Estate operates under the requirements set out in the Crown Estate Act 1961, including the requirement to lay in the Houses of Parliament an annual report and accounts audited by the Comptroller and Auditor General. The Comptroller and Auditor General may also carry out value for money studies of The Crown Estate under the National Audit Act 1983, and has access to Crown Estate information in the same way as they do for government departments.

The Financial Conduct Authority (FCA) does not spend the revenue it collects from fines. The FCA is required to pass revenue from fines it imposes by the FCA to the Treasury. The Treasury must surrender it to the Consolidated Fund and it is then part of the Government’s total revenues, used to pay for all Government spending on public services.

The FCA is permitted to deduct an amount equal to the costs of its enforcement activity from penalty receipts. The money retained for this purpose must be used for the benefit of regulated firms: the FCA achieves this through the Financial Penalty Scheme, which provides a rebate for relevant firms, reducing the fee that they must pay to the FCA in a given year. Under the Scheme, the firms on which any penalty was imposed in a financial year will not receive any rebate to their fees in the following financial year.

The FCA’s 2025 Fees and Levies Policy Statement sets out that it reduced the total fees payable to meet its annual funding requirement by applying the £71.6m using the financial penalty revenues it retained from 2024-25. Further information about how this is distributed among FCA-regulated firms can be found on the FCA’s website.

The Financial Conduct Authority (FCA) does not spend the revenue it collects from fines. The FCA is required to pass revenue from fines it imposes by the FCA to the Treasury. The Treasury must surrender it to the Consolidated Fund and it is then part of the Government’s total revenues, used to pay for all Government spending on public services.

The FCA is permitted to deduct an amount equal to the costs of its enforcement activity from penalty receipts. The money retained for this purpose must be used for the benefit of regulated firms: the FCA achieves this through the Financial Penalty Scheme, which provides a rebate for relevant firms, reducing the fee that they must pay to the FCA in a given year. Under the Scheme, the firms on which any penalty was imposed in a financial year will not receive any rebate to their fees in the following financial year.

The FCA’s 2025 Fees and Levies Policy Statement sets out that it reduced the total fees payable to meet its annual funding requirement by applying the £71.6m using the financial penalty revenues it retained from 2024-25. Further information about how this is distributed among FCA-regulated firms can be found on the FCA’s website.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to championing sufficient access for customers. In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 190 are already open. Government is working closely with industry on this commitment.

The locations of banking hubs are independently determined by LINK, the industry coordinating body responsible for making access to cash assessments. LINK will carry out an assessment wherever a branch closure is announced or if they receive a community request.

LINK will recommend appropriate solutions where it considers that a community requires additional cash services. Some of the criteria that LINK considers are whether there is a bank branch remaining, population size, number of shops on the high street, distance to the nearest bank branch, public transport links and vulnerability of the population.

While decisions on branch provision are commercial decisions for banks themselves, Financial Conduct Authority guidance requires firms to conduct a robust impact analysis. Firms must show they have considered customer needs and identified potential reasonable alternatives. The FCA also expects engagement with stakeholders at least 12 weeks before closure and firms must ensure that any replacement services, such as banking hubs, are in place before a branch closes. These measures aim to ensure closures are implemented fairly and transparently.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to championing sufficient access for customers. In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 190 are already open. Government is working closely with industry on this commitment.

The locations of banking hubs are independently determined by LINK, the industry coordinating body responsible for making access to cash assessments. LINK will carry out an assessment wherever a branch closure is announced or if they receive a community request.

LINK will recommend appropriate solutions where it considers that a community requires additional cash services. Some of the criteria that LINK considers are whether there is a bank branch remaining, population size, number of shops on the high street, distance to the nearest bank branch, public transport links and vulnerability of the population.

While decisions on branch provision are commercial decisions for banks themselves, Financial Conduct Authority guidance requires firms to conduct a robust impact analysis. Firms must show they have considered customer needs and identified potential reasonable alternatives. The FCA also expects engagement with stakeholders at least 12 weeks before closure and firms must ensure that any replacement services, such as banking hubs, are in place before a branch closes. These measures aim to ensure closures are implemented fairly and transparently.

The government's fiscal strategy is putting the public finances on a sustainable path while prioritising investment to protect the NHS and support long-term growth. We are relentlessly cutting waste, improving efficiency to make sure every penny of taxpayers' money is spent wisely, and reforming public services to make sure they are sustainable.

The government's fiscal strategy is putting the public finances on a sustainable path while prioritising investment to protect the NHS and support long-term growth. We are relentlessly cutting waste, improving efficiency to make sure every penny of taxpayers' money is spent wisely, and reforming public services to make sure they are sustainable.

Estimates of the number of additional rate taxpayers for the financial years 2020-21 to 2024-25 are published by HMRC in the Income Tax Liabilities Statistics. The latest available figures can be found in Table 2.1 of HMRC’s Income Tax Liabilities Statistics, available at:

https://www.gov.uk/government/statistics/number-of-individual-income-taxpayers-by-marginal-rate-gender-and-age

Anti-money laundering supervisors retain a portion of the fines they issue to cover their enforcement costs, with the remainder being remitted to the consolidated fund. Information on the total value of fines remitted to the consolidated fund, including those by anti-money laundering supervisors, can be found in HM Treasury’s annual report and accounts.

https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2024-to-2025

Information on the total value of fines issued by anti-money laundering supervisors for 2023-24 can be found in HM Treasury’s annual supervision report.

https://www.gov.uk/government/publications/anti-money-laundering-and-countering-the-financing-of-terrorism-supervision-report-2023-24

The 2024-25 version of this report is due to be published later this year.

Each anti-money laundering supervisor also publishes an annual report on their accounts, including a breakdown of the fines they have issued.

Individual public bodies participating in the Asset Recovery Incentivisation Scheme are responsible for record-keeping of any unspent funds returned to the Consolidated Fund. As such, HM Treasury does not collate this information.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, the Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.

The Government published a tax information and impact note on 21 July 2025 and this is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.

The Government will also invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

The Office for Budget Responsibility publishes the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances. With all policies considered, the OBR's March 2025 EFO forecasts the employment level to increase from 33.6 million in 2024 to 34.8 million in 2029.

The government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Safe adoption is an essential part of realising that vision.

The UK's data protection framework applies to the processing of personal data throughout the design, development and deployment phases of AI tools. Organisations are required to ensure that personal data is processed fairly, lawfully, transparently, and securely. People also have a number of rights over how their personal data is used, such as the right of access, rectification, or erasure.

In relation to financial advice, the government recognises that people do not always have access to the support they need when making financial decisions, and an increasing number are turning to technologies such as general-purpose large language models for help.

The government wants to ensure that people can receive meaningful support from firms they know and trust – such as their bank or pension provider. That is why we are taking steps to enable trusted firms to do more to proactively support their customers.

To this end, the government is introducing a new regime for targeted support, allowing firms to engage directly with customers and suggest products or courses of action suitable for their financial situation. As announced by the Chancellor at her Mansion House speech earlier this year, targeted support will be available online in time for the next financial year.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.

In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry.   We have apologised for this.

Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims. HMRC reviewed all compliance cases already opened and conducted a PAYE check.

These checks were completed on 14 November. As of 31 October 2025, 3,673 out of 23,794 customers who have had a compliance enquiry opened following the expansion of the pilot have had their eligibility subsequently confirmed. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.

HMRC has also responded to the Treasury Select Committee to outline the steps it has taken in relation to this issue.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.

In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry.   We have apologised for this.

Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims. HMRC reviewed all compliance cases already opened and conducted a PAYE check.

These checks were completed on 14 November. As of 31 October 2025, 3,673 out of 23,794 customers who have had a compliance enquiry opened following the expansion of the pilot have had their eligibility subsequently confirmed. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.

HMRC has also responded to the Treasury Select Committee to outline the steps it has taken in relation to this issue.

The government is committed to helping people with health conditions and disabled people, including those with learning disabilities, to start and stay in work.

The government provides support to employers to recruit and retain disabled people through the Access to Work scheme, which assists with the cost of specialist equipment, workplace adjustments or support workers.

The government has also announced the largest investment in employment support in at least a generation to help sick and disabled people, reaching £1 billion per annum by 2029-30. The government has also made significant investments in employment support for disabled people at the Spending Review, including through the rollout of Connect to Work which will help up to 100,000 individuals a year to secure work and the delivery of Work Well, a programme which aims to improve health and employment outcomes through locally led work and health services.

The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.

The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and addressing risks to the UK financial system. The FPC’s latest remit was set out by the Chancellor in November 2024. It notes that whilst recognising the significant economic opportunities presented by emerging technologies, including Artificial Intelligence, the Committee should continue to consider potential financial stability risks associated with their widespread adoption.

The FPC’s April 2025 ‘Financial Stability in Focus’ report sets out the Committee’s view on the financial stability implications of AI, including in relation to the use of AI in banks’ and insurers’ core financial decision making. It also sets out the FPC’s approach to monitoring and mitigating risks from AI.

Child Benefit is paid to over 6.9 million families, supporting 11.9 million children. It is one of the most widely accessed benefits in the UK.

As part of ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC ran a pilot from March 2024 to December 2024 using international travel data, provided by the Home Office, to identify Child Benefit claimants who may no longer satisfy residency-related eligibility criteria. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments.

This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024. This is expected to save £350 million over the next five years.

The legal basis for disclosing information between HMRC and the Home Office for the purpose of tackling fraud is in Chapter 4 of the Digital Economy Act (“DEA”) 2017. HMRC has robust governance processes in place to assess its legal use of these powers to disclose and receive information from other public bodies.

In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries. HMRC has now reinstated the employment check, conducted the check on all open cases, reinstated payments automatically without any need for claimant contact and backdated those payments.

HMRC is asking claimants under enquiry who believe they are still eligible to call the number in the letter they received. HMRC has set up a dedicated team to handle cases swiftly. Where eligibility is confirmed, payments will resume and HMRC will make backdated payments, so there will be no loss of entitlement. By the end of November, HMRC will have written to all claimants who have not yet made contact to provide them with a further 4 weeks to make contact.

HMRC is taking further steps to strengthen the process for this exercise and will no longer suspend payments at the outset of an enquiry. HMRC will give all claimants at least one month to evidence their entitlement first. Claimants will then be given a further month to respond before a decision to terminate their award is considered. HMRC has also introduced an upfront check to identify claimants from Northern Ireland whose exit from the UK was to the Republic of Ireland and will not issue enquiries on these claimants as part of this exercise. HMRC will streamline what is asked of claimants during these enquiries to confirm their ongoing eligibility for Child Benefit, and will continue to iterate the process where its monitoring and learning suggests that it should make further changes.

At Autumn Budget 2024, the proposed changes to Employee Car Ownership Schemes were estimated to raise £875m across the scorecard. This costing and the tax impact and information note will be updated at a future fiscal event to reflect the six-month delay to the originally announced implementation date.

Improving day-to-day performance is a key priority for HMRC.

In 2024-25, HMRC handled 71.5% of adviser attempts across their helplines and had an average call answer time of 18 minutes 38 seconds. So far this year (April –September 2025), they have handled 83.8% of adviser attempts and call wait times have decreased to 13 minutes 30 seconds.

HMRC are taking steps to make sure more of their services are digital, so customers can self-serve online. HMRC online services and the HMRC app are convenient to access and receive high customer satisfaction ratings. As more people use HMRC online services, advisers are freed up to support those with more complex queries and those who are digitally excluded.

The below table provides details of abandoned calls on the Self Assessment helpline over the past five years. Abandoned calls refers to calls that reach the queue for the helpline and the customer hangs up before their call is answered. Customers may hang up before their call is answered for a number of reasons – for example, they may have had their query answered by HMRC’s recorded messages, they may have found the information they require online or they may have decided to call back another time. So far in 2025-26, there have been 192,659 abandoned calls on the SA helpline (8.8% of overall calls)

Improving day-to-day performance is a key priority for HMRC.

In 2024-25, HMRC handled 71.5% of adviser attempts across their helplines and had an average call answer time of 18 minutes 38 seconds. So far this year (April –September 2025), they have handled 83.8% of adviser attempts and call wait times have decreased to 13 minutes 30 seconds.

HMRC are taking steps to make sure more of their services are digital, so customers can self-serve online. HMRC online services and the HMRC app are convenient to access and receive high customer satisfaction ratings. As more people use HMRC online services, advisers are freed up to support those with more complex queries and those who are digitally excluded.

The below table provides details of abandoned calls on the Self Assessment helpline over the past five years. Abandoned calls refers to calls that reach the queue for the helpline and the customer hangs up before their call is answered. Customers may hang up before their call is answered for a number of reasons – for example, they may have had their query answered by HMRC’s recorded messages, they may have found the information they require online or they may have decided to call back another time. So far in 2025-26, there have been 192,659 abandoned calls on the SA helpline (8.8% of overall calls)

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.

In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this.

Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims.

HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated.

By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.

In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this.

Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims.

HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated.

By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.

HMRC will also be responding to the Treasury Select Committee to outline the steps it has taken in relation to this issue.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.

In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this.

Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims.

HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated.

By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.

HMRC will also be responding to the Treasury Select Committee to outline the steps it has taken in relation to this issue.

Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. It will be extended to those with income over £30,000 from April 2027 and for those with income over £20,000 in April 2028. In total around 2.9m businesses and landlords will need to use MTD for Income Tax. Sole Traders and landlords below these thresholds will still be able to file their Self Assessment returns as they do now.

HMRC has undertaken detailed assessments of the potential impact of MTD for Income Tax across different taxpayer groups, including self-employed individuals, small businesses, and landlords.  The latest published assessment is available at:

Extension of Making Tax Digital for Income Tax Self Assessment to sole traders and landlords - GOV.UK

MTD for Income Tax is a new approach that is designed to help customers avoid errors and make their annual tax returns easier. The government has taken steps to minimise costs to businesses resulting from MTD, including working with the software industry to ensure free software is available for landlords and other businesses with simple affairs.

HMRC is providing a range of support to taxpayers transitioning to MTD, including guidance in various formats, accessible video content and webinars. HMRC is testing the MTD service with thousands of users, and using dedicated teams to ensure the right support is available.

Those who genuinely cannot operate MTD because it is not reasonable for them to do so will be able to apply for an exemption from MTD requirements.

Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. It will be extended to those with income over £30,000 from April 2027 and for those with income over £20,000 in April 2028. In total around 2.9m businesses and landlords will need to use MTD for Income Tax. Sole Traders and landlords below these thresholds will still be able to file their Self Assessment returns as they do now.

HMRC has undertaken detailed assessments of the potential impact of MTD for Income Tax across different taxpayer groups, including self-employed individuals, small businesses, and landlords.  The latest published assessment is available at:

Extension of Making Tax Digital for Income Tax Self Assessment to sole traders and landlords - GOV.UK

MTD for Income Tax is a new approach that is designed to help customers avoid errors and make their annual tax returns easier. The government has taken steps to minimise costs to businesses resulting from MTD, including working with the software industry to ensure free software is available for landlords and other businesses with simple affairs.

HMRC is providing a range of support to taxpayers transitioning to MTD, including guidance in various formats, accessible video content and webinars. HMRC is testing the MTD service with thousands of users, and using dedicated teams to ensure the right support is available.

Those who genuinely cannot operate MTD because it is not reasonable for them to do so will be able to apply for an exemption from MTD requirements.

Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. It will be extended to those with income over £30,000 from April 2027 and for those with income over £20,000 in April 2028. In total around 2.9m businesses and landlords will need to use MTD for Income Tax. Sole Traders and landlords below these thresholds will still be able to file their Self Assessment returns as they do now.

HMRC has undertaken detailed assessments of the potential impact of MTD for Income Tax across different taxpayer groups, including self-employed individuals, small businesses, and landlords.  The latest published assessment is available at:

Extension of Making Tax Digital for Income Tax Self Assessment to sole traders and landlords - GOV.UK

MTD for Income Tax is a new approach that is designed to help customers avoid errors and make their annual tax returns easier. The government has taken steps to minimise costs to businesses resulting from MTD, including working with the software industry to ensure free software is available for landlords and other businesses with simple affairs.

HMRC is providing a range of support to taxpayers transitioning to MTD, including guidance in various formats, accessible video content and webinars. HMRC is testing the MTD service with thousands of users, and using dedicated teams to ensure the right support is available.

Those who genuinely cannot operate MTD because it is not reasonable for them to do so will be able to apply for an exemption from MTD requirements.

HMRC uses Home Office international travel data as a starting point for identifying potential unreported absences from the UK. Undetected changes to an individual’s residency status are a leading cause of Child Benefit error and fraud.

The legal basis for disclosing information between HMRC and Home Office for the purpose of tackling fraud is Chapter 4 of the Digital Economy Act (“DEA”) 2017. The exchange of data between HMRC and the Home Office continues to work as expected and agreed.

At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26. The temporary 5p cut is currently scheduled to expire in March 2026. The Government considers the impact of fuel duty on households and businesses, with decisions on rates made at fiscal events.

It is not possible to provide the information requested for the Fylde constituency since September 2025. This is because HMRC do not hold the information at a constituency level.

HMRC has published information on Stamp Duty Land Tax (SDLT) here: http://www.gov.uk/stamp-duty-land-tax.

Guidance on the transfer of ownership of land or property in different situations has also been provided: http://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property.

Guidance on the application of SDLT for trusts is available in HMRC’s SDLT Manual at SDLTM31700 onwards, which includes:

· bare trustees purchasing land (including dwellings) at SDLTM31710

· trustees of a settlement purchasing land (including dwellings) at SDLTM31720

HMRC has also published information on Capital Gains Tax, including on the disposal of assets to a trust, which includes selling a stake in a property to a trust. This information can be found here: https://www.gov.uk/trusts-taxes/trusts-and-capital-gains-tax. Further detailed guidance can be found in the Capital Gains Manual: https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual.

The majority of HMRC’s engagement forums play a role in contributing to the development of tax policy, as well as addressing other key areas such as operations, compliance and communications. These forums bring together a diverse mix of representatives from professional bodies, other representative organisations, tax practitioners and independent experts.