HM Treasury

Iran’s indiscriminate attacks are a threat to Britain, our allies and our partners in the region.

As she set out in the House on 9 March, the Chancellor has approved access for the Ministry of Defence to the special reserve to deploy additional capabilities in the Middle East. The net additional costs of operations will be funded by the Treasury.

We do not yet know how long the conflict will last or what further action will be required, but the Chancellor is being responsive in an uncertain world, and is protecting the public finances in the national interest.

HMRC has worked collaboratively with a broad range of charity sector stakeholders and other government departments including DCMS to explore the potential of the Future of Gift Aid project and wider Gift Aid modernisation.

HMRC has worked collaboratively with a broad range of charity sector stakeholders and other government departments including DCMS to explore the potential of the Future of Gift Aid project and wider Gift Aid modernisation.

HMRC has worked collaboratively with a broad range of charity sector stakeholders and other government departments including DCMS to explore the potential of the Future of Gift Aid project and wider Gift Aid modernisation.

HMRC has worked collaboratively with a broad range of charity sector stakeholders and other government departments including DCMS to explore the potential of the Future of Gift Aid project and wider Gift Aid modernisation.

The Government recognises that generating investment returns can be important for supporting charitable purposes and that access to appropriate, cost effective investment vehicles is an important consideration for the sector. Charities are able to invest through a range of authorised UK fund structures designed to meet their needs, including Charity Authorised Investment Funds (CAIFs), which give a favourable tax treatment to eligible UK charities.

The Government has received representations in relation to the application of s57 of the Finance Act 2012 to charities. These are being considered through the normal policy processes.

The Valuation Office Agency (VOA) is responsible for valuing non-domestic property for business rates purposes. They are required to maintain accurate rating lists in England impartially and independently of central Government, and must consider developments in relevant caselaw.

As a result of case law developments, the VOA have concluded that, rather than each room within a serviced office being assessed separately, most serviced offices will need to be assessed as a single property, unless clear evidence demonstrates a need to have separate assessments. Each serviced office is looked at on a case-by-case basis, and the VOA are addressing properties where they have received legal advice, or where unit of assessment issues are brought to its attention. Reviewing a small number of cases will help clarify the application of legislation on serviced offices. At this time, there is no sector-wide review of serviced office assessments underway. The VOA will continue to monitor legal developments and update its approach as needed.

A single rating assessment would mean occupying businesses will face no business rates bill at all. Instead, the serviced office provider will be liable for business rates on the entire assessment. It is for serviced office providers to decide if they will pass the cost on to their tenants, depending on contractual agreements.

The Valuation Office Agency (VOA) is responsible for valuing non-domestic property for business rates purposes. They are required to maintain accurate rating lists in England impartially and independently of central Government, and must consider developments in relevant caselaw.

As a result of case law developments, the VOA have concluded that, rather than each room within a serviced office being assessed separately, most serviced offices will need to be assessed as a single property, unless clear evidence demonstrates a need to have separate assessments. Each serviced office is looked at on a case-by-case basis, and the VOA are addressing properties where they have received legal advice, or where unit of assessment issues are brought to its attention. Reviewing a small number of cases will help clarify the application of legislation on serviced offices. At this time, there is no sector-wide review of serviced office assessments underway. The VOA will continue to monitor legal developments and update its approach as needed.

A single rating assessment would mean occupying businesses will face no business rates bill at all. Instead, the serviced office provider will be liable for business rates on the entire assessment. It is for serviced office providers to decide if they will pass the cost on to their tenants, depending on contractual agreements.

A) Based on data available to HMRC for 2024/25 the ports of entry for low value imports are:

B) HMRC holds data on low value imports although does not routinely collect consignment level information. A single declaration may cover multiple consignments, meaning the volume of declarations does not correspond to the number of individual parcels entering the UK. We define value as the economic value of goods declared for importation that move through a port that includes goods into free circulation and entering special procedures. We define the entries into the ports as where the goods are stored for the purpose of customs checks.

We are therefore unable to provide proportions based on numbers of consignments or to distinguish freight moved in the hold of passenger aircraft from freight moved on cargo flights.

C) For the same reason as set out in B, we are unable to provide information on the number of consignments. Available data on the declared trade value and number of declarations of low value imports eligible for relief under the low value import exemption in 2024-25 are shown in the following table:

*Rounding to the nearest thousand.

D) The declared trade value of goods arriving at Heathrow via air in 2024-25 was £162bn. Low value imports by air transport account for just under 5 per cent of declarations and around 1 per cent of the value of goods imported into Heathrow in 2024-25.

The Valuation Office Agency (VOA) provided valuation data and analysis on the non-domestic property market to the Ministry of Housing, Communities and Local Government and HM Treasury throughout the preparation stages of the 2026 revaluation.

The VOA provided five data drops from 1 April 2024 to the publication of the draft Rating List.

The Government routinely assesses how departments use financial information to support strategic decision-making and value for money. This includes scrutiny during Spending Reviews, regular engagement between HM Treasury and departments on budgets and forecasts, an End-of-Year assessment measuring financial performance, through departmental Annual Reports and Accounts, and through National Audit Office examinations, which provide independent assurance on the quality, transparency and use of financial data.

Departments routinely provide finance data to the HM Treasury OSCAR system, setting out their forecasts, budgets and spend to date. Departments report their forecast and actual efficiencies to HM Treasury. Accounting Officers of departments are responsible for value for money in the use of public funds, and in this they are supported by the guidance, budgeting and accounting framework provided by HM Treasury.

The Government is taking steps to strengthen financial management capability across the public sector through the Government Finance Function’s learning and development offer, which aims to build financial capability and develop a skilled and talented workforce. The Finance Function’s Government Finance Academy provides core learning offers which strengthen financial literacy across Government in key areas such as value for money, budgeting & forecasting, and provides professional training and development for finance professionals.

The Function also supports the development of talent pipelines and leadership capability across departments by building career frameworks and pathways that support progression. The Function connects some 9,000 finance professionals across government through its communities, networks and events, which further builds financial capability by providing opportunities for shared learning and fostering professional excellence.

The Government is modernising finance operations to support better decision‑making, including enhancing digital skills, promoting modern finance practices and encouraging the adoption of shared services and improved systems. Through common finance standards and data approaches the function enables departments to access high‑quality, reliable financial information, underpinning stronger financial management and improved value for money across government.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.

Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution.

Our tax regime for charities, including gift aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.

Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution.

Our tax regime for charities, including gift aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.

Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution.

Our tax regime for charities, including gift aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.

Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution.

Our tax regime for charities, including gift aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.

HMRC has not made an estimate of the administrative burden to the Treasury for processing VAT receipts for businesses with a turnover below £250,000. HMRC measures its overall operational costs across all taxes and does not hold this information at the level of granularity required to isolate costs attributable to businesses with a turnover under £250,000.

HMRC does not estimate the administrative cost to businesses with a turnover below £250,000 for processing and submitting VAT returns, as the cost can vary between businesses, regardless of their turnover. Administrative costs are largely dependent on their individual business processes and the nature and complexity of their record keeping.

We maintain a longstanding principle that reliefs should be targeted to balance support with fiscal sustainability. Modern consumer technologies, while helpful to disabled users, are also intended for use by those without impairments hence do not meet the statutory test of being designed solely for disabled people.

We recognise the vital role that assistive technologies can play in improving independence and quality of life. The government keeps all taxes under review as part of the policy making process and decisions on tax policy are taken by the Chancellor at a fiscal event.

Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions resulting from changes that have been made to pensions tax policy over the last decade, which have led to some pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions

The Government will continue to incentivise pension savings for their intended purpose of funding retirement, with ongoing tax reliefs on both contributions into pensions and on the growth of funds held within a pension scheme. Pensions continue to benefit from very significant tax benefits, with gross income tax and National Insurance contributions relief costing £78.2 billion in 2023-24. It is therefore crucial to ensure that tax reliefs on pensions are being used for their intended purpose – to encourage saving for retirement and later life – rather than for passing on wealth free of inheritance tax

Estates will continue to benefit from the normal nil-rate bands, reliefs, and exemptions available. For example, the nil-rate bands mean an estate can pass on up to £1 million with no inheritance tax liability and the general rules mean any transfers, including the payment of death benefits, to a spouse or civil partner are fully exempt from inheritance tax. More than 90 per cent of UK estates will continue to have no inheritance tax liability in 2030-31 following these changes and the reforms will only affect a minority of those with inheritable pension wealth.

The Government recognises that access to in‑person banking services can be particularly important for some customers, including blind and partially sighted people, individuals with learning disabilities, and those with mental health conditions.

The Government is committed to maintaining high standards of financial inclusion across the financial services sector, including in the Yeovil constituency, Somerset and the United Kingdom as a whole.

Where banks make commercial decisions to reduce their branch network, they are required by the Financial Conduct Authority (FCA) to carefully consider the impact on customers’ everyday banking and cash access needs, including the needs of vulnerable customers, and to put appropriate alternative arrangements in place.

The Government understands the importance of banking services to communities and is committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Over 270 hubs have been announced so far, and more than 225 are already open. Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.

In addition, customers can access everyday banking services through the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check balances and pay bills at over 10,000 Post Office branches across the UK.

Some firms also provide additional in‑person access through services such as mobile banking vans or pop‑up locations in community venues, particularly in rural and remote areas.

Financial services provided by banks and building societies must comply with the FCA’s rules, which require firms to provide a prompt, efficient and fair service to all customers. The FCA’s Consumer Duty further requires firms to act in good faith, avoid foreseeable harm and support customers to pursue their financial objectives, including by ensuring that information and services are accessible. The FCA’s Handbook requires firms to identify particularly vulnerable customers, and to consider the needs of these customers appropriately. This includes blind and partially sighted people, individuals with learning disabilities, and those experiencing mental health difficulties.

Banks and building societies are also subject to the Equality Act 2010, which requires service providers to make reasonable adjustments so that disabled people can access services on an equal basis.

More broadly, the Government’s Financial Inclusion Strategy, published in November, sets out an ambitious programme of work to improve access to financial services for underserved groups across the UK. This includes a key focus on access to banking and digital inclusion, with interventions to make financial products and services more accessible, support in-person banking services, and make it easier for individuals to access a bank account.

The Government keeps the effectiveness of current arrangements under review through regular engagement with stakeholders to ensure they meet the needs of local communities.

The Government recognises that access to in‑person banking services can be particularly important for some customers, including blind and partially sighted people, individuals with learning disabilities, and those with mental health conditions.

The Government is committed to maintaining high standards of financial inclusion across the financial services sector, including in the Yeovil constituency, Somerset and the United Kingdom as a whole.

Where banks make commercial decisions to reduce their branch network, they are required by the Financial Conduct Authority (FCA) to carefully consider the impact on customers’ everyday banking and cash access needs, including the needs of vulnerable customers, and to put appropriate alternative arrangements in place.

The Government understands the importance of banking services to communities and is committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Over 270 hubs have been announced so far, and more than 225 are already open. Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.

In addition, customers can access everyday banking services through the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check balances and pay bills at over 10,000 Post Office branches across the UK.

Some firms also provide additional in‑person access through services such as mobile banking vans or pop‑up locations in community venues, particularly in rural and remote areas.

Financial services provided by banks and building societies must comply with the FCA’s rules, which require firms to provide a prompt, efficient and fair service to all customers. The FCA’s Consumer Duty further requires firms to act in good faith, avoid foreseeable harm and support customers to pursue their financial objectives, including by ensuring that information and services are accessible. The FCA’s Handbook requires firms to identify particularly vulnerable customers, and to consider the needs of these customers appropriately. This includes blind and partially sighted people, individuals with learning disabilities, and those experiencing mental health difficulties.

Banks and building societies are also subject to the Equality Act 2010, which requires service providers to make reasonable adjustments so that disabled people can access services on an equal basis.

More broadly, the Government’s Financial Inclusion Strategy, published in November, sets out an ambitious programme of work to improve access to financial services for underserved groups across the UK. This includes a key focus on access to banking and digital inclusion, with interventions to make financial products and services more accessible, support in-person banking services, and make it easier for individuals to access a bank account.

The Government keeps the effectiveness of current arrangements under review through regular engagement with stakeholders to ensure they meet the needs of local communities.

The Government recognises that access to in‑person banking services can be particularly important for some customers, including blind and partially sighted people, individuals with learning disabilities, and those with mental health conditions.

The Government is committed to maintaining high standards of financial inclusion across the financial services sector, including in the Yeovil constituency, Somerset and the United Kingdom as a whole.

Where banks make commercial decisions to reduce their branch network, they are required by the Financial Conduct Authority (FCA) to carefully consider the impact on customers’ everyday banking and cash access needs, including the needs of vulnerable customers, and to put appropriate alternative arrangements in place.

The Government understands the importance of banking services to communities and is committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Over 270 hubs have been announced so far, and more than 225 are already open. Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.

In addition, customers can access everyday banking services through the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check balances and pay bills at over 10,000 Post Office branches across the UK.

Some firms also provide additional in‑person access through services such as mobile banking vans or pop‑up locations in community venues, particularly in rural and remote areas.

Financial services provided by banks and building societies must comply with the FCA’s rules, which require firms to provide a prompt, efficient and fair service to all customers. The FCA’s Consumer Duty further requires firms to act in good faith, avoid foreseeable harm and support customers to pursue their financial objectives, including by ensuring that information and services are accessible. The FCA’s Handbook requires firms to identify particularly vulnerable customers, and to consider the needs of these customers appropriately. This includes blind and partially sighted people, individuals with learning disabilities, and those experiencing mental health difficulties.

Banks and building societies are also subject to the Equality Act 2010, which requires service providers to make reasonable adjustments so that disabled people can access services on an equal basis.

More broadly, the Government’s Financial Inclusion Strategy, published in November, sets out an ambitious programme of work to improve access to financial services for underserved groups across the UK. This includes a key focus on access to banking and digital inclusion, with interventions to make financial products and services more accessible, support in-person banking services, and make it easier for individuals to access a bank account.

The Government keeps the effectiveness of current arrangements under review through regular engagement with stakeholders to ensure they meet the needs of local communities.

The Government is committed to protecting the UK’s financial system and maintaining a robust anti-money laundering and counter-terrorist financing system. This involves identifying risks to the system, monitoring global developments, and working with international partners.

The Government does not comment on assessments relating to specific firms. Where appropriate, the Government will act in response to individual cases and risks identified.

Charities and community groups make a valuable contribution across the country, and it is important that they can access suitable banking services in person and online.

Decisions about the provision of banking services, and associated fees, are primarily commercial matters for banks who must meet strict financial crime and customer due diligence obligations. Charities and community groups often have more complex account structures (for example, multiple trustees), making their banking needs more expensive and operationally demanding, which may explain the fees applied.

It is important for charities to shop around to ensure they pick the most appropriate banking product for their needs. UK Finance worked closely with the charity sector and Government to produce an ‘Account Finder’ tool designed exclusively for charities and voluntary organisations so they can browse providers and accounts easily, including their charges.

The Government understands the importance of banking services to communities and is committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Over 270 hubs have been announced so far, and more than 225 are already open.

Banking hubs provide personal and business customers with access to everyday counter services, including cash withdrawals and deposits, balance enquiries and bill payments. They also contain dedicated rooms where all customers can see community bankers from their own bank to carry out other banking services as they would in a traditional bank branch.

The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, and pay bills at over 10,000 of Post Office branches across the UK. Fees for these services remain a commercial decision for the bank providing the account.

The Government is committed to protecting the UK’s financial system and maintaining a robust anti-money laundering and counter-terrorist financing system. This involves identifying risks to the system, monitoring global developments, and working with international partners.

The Government does not comment on assessments relating to specific firms. Where appropriate, the Government will act in response to individual cases and risks identified.

The Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.

Under the Financial Services and Markets Act (2023) the Financial Conduct Authority (FCA) has responsibility and powers to protect access to cash withdrawal and deposit facilities, including free facilities for personal current account holders. The FCA’s most recent data shows that 99.2% of the urban population live within 1 miles of a free to use cash access point offering withdrawals. In rural areas, 98.5% of people live within 3 miles of a free to use cash access point offering withdrawals

LINK, the UK’s not-for-profit, independently governed ATM operator, publish data on the number of ATMs nationally and across each parliamentary constituency. This includes a breakdown of the number of pay-to-use ATMs operated by the LINK network. LINK data estimates that in 2025, there were 42,403 ATMs in the UK, including 8,693 pay-to-use ATMs. This data can be found at https://www.link.co.uk/data-research/the-atm-network

Customers can also access everyday cash and banking services at Post Office branches. The Post Office Banking Framework allows personal and business customers of participating banks to withdraw and deposit cash; for personal customers this service is free. Customers are also able to check their balance, pay bills and cash cheques at over 10,000 Post Office branches across the UK.

The government is a strong supporter of the mutual sector, including credit unions, and is working to support its growth in line with the manifesto commitment to double the size of the co-operative and mutual sector.

On 18 March, the government announced plans to reform the credit union common bond by:

• Increasing the potential membership cap on the locality bond from 3 million to 10 million, which will significantly expand the potential size of locality-based credit unions, which make up 79% of the sector, and reduce uncertainty around merger activity.
• Allowing credit unions to admit students to locality-based credit unions, if not otherwise eligible through residence or work.
• Expanding eligibility for members' relatives to allow credit unions to admit relatives of qualifying members regardless of whether they share a household.
• Allowing credit unions to retain retired members as fully qualifying members.

The reforms will apply across Great Britain, including in Milton Keynes and Buckinghamshire. Full details of the government’s plans have been published in a call for evidence response available on GOV.UK.

The government will legislate to give effect to these reforms as soon as parliamentary time allows. A full impact assessment will be published alongside the legislative reforms.

The reforms to the credit union common bond form part of a broader package of measures to support improved access to financial products and services under the Financial Inclusion Strategy. The Strategy itself will be reviewed two years after publication to assess its overall progress.

The government is a strong supporter of the mutual sector, including credit unions, and is working to support its growth in line with the manifesto commitment to double the size of the co-operative and mutual sector.

On 18 March, the government announced plans to reform the credit union common bond by:

• Increasing the potential membership cap on the locality bond from 3 million to 10 million, which will significantly expand the potential size of locality-based credit unions, which make up 79% of the sector, and reduce uncertainty around merger activity.
• Allowing credit unions to admit students to locality-based credit unions, if not otherwise eligible through residence or work.
• Expanding eligibility for members' relatives to allow credit unions to admit relatives of qualifying members regardless of whether they share a household.
• Allowing credit unions to retain retired members as fully qualifying members.

The reforms will apply across Great Britain, including in Milton Keynes and Buckinghamshire. Full details of the government’s plans have been published in a call for evidence response available on GOV.UK.

The government will legislate to give effect to these reforms as soon as parliamentary time allows. A full impact assessment will be published alongside the legislative reforms.

The reforms to the credit union common bond form part of a broader package of measures to support improved access to financial products and services under the Financial Inclusion Strategy. The Strategy itself will be reviewed two years after publication to assess its overall progress.

The government is a strong supporter of the mutual sector, including credit unions, and is working to support its growth in line with the manifesto commitment to double the size of the co-operative and mutual sector.

On 18 March, the government announced plans to reform the credit union common bond by:

• Increasing the potential membership cap on the locality bond from 3 million to 10 million, which will significantly expand the potential size of locality-based credit unions, which make up 79% of the sector, and reduce uncertainty around merger activity.
• Allowing credit unions to admit students to locality-based credit unions, if not otherwise eligible through residence or work.
• Expanding eligibility for members' relatives to allow credit unions to admit relatives of qualifying members regardless of whether they share a household.
• Allowing credit unions to retain retired members as fully qualifying members.

The reforms will apply across Great Britain, including in Milton Keynes and Buckinghamshire. Full details of the government’s plans have been published in a call for evidence response available on GOV.UK.

The government will legislate to give effect to these reforms as soon as parliamentary time allows. A full impact assessment will be published alongside the legislative reforms.

The reforms to the credit union common bond form part of a broader package of measures to support improved access to financial products and services under the Financial Inclusion Strategy. The Strategy itself will be reviewed two years after publication to assess its overall progress.

The government is a strong supporter of the mutual sector, including credit unions, and is working to support its growth in line with the manifesto commitment to double the size of the co-operative and mutual sector.

On 18 March, the government announced plans to reform the credit union common bond by:

• Increasing the potential membership cap on the locality bond from 3 million to 10 million, which will significantly expand the potential size of locality-based credit unions, which make up 79% of the sector, and reduce uncertainty around merger activity.
• Allowing credit unions to admit students to locality-based credit unions, if not otherwise eligible through residence or work.
• Expanding eligibility for members' relatives to allow credit unions to admit relatives of qualifying members regardless of whether they share a household.
• Allowing credit unions to retain retired members as fully qualifying members.

The reforms will apply across Great Britain, including in Milton Keynes and Buckinghamshire. Full details of the government’s plans have been published in a call for evidence response available on GOV.UK.

The government will legislate to give effect to these reforms as soon as parliamentary time allows. A full impact assessment will be published alongside the legislative reforms.

The reforms to the credit union common bond form part of a broader package of measures to support improved access to financial products and services under the Financial Inclusion Strategy. The Strategy itself will be reviewed two years after publication to assess its overall progress.

The government is a strong supporter of the mutual sector, including credit unions, and is working to support its growth in line with the manifesto commitment to double the size of the co-operative and mutual sector.

On 18 March, the government announced plans to reform the credit union common bond by:

• Increasing the potential membership cap on the locality bond from 3 million to 10 million, which will significantly expand the potential size of locality-based credit unions, which make up 79% of the sector, and reduce uncertainty around merger activity.
• Allowing credit unions to admit students to locality-based credit unions, if not otherwise eligible through residence or work.
• Expanding eligibility for members' relatives to allow credit unions to admit relatives of qualifying members regardless of whether they share a household.
• Allowing credit unions to retain retired members as fully qualifying members.

The reforms will apply across Great Britain, including in Milton Keynes and Buckinghamshire. Full details of the government’s plans have been published in a call for evidence response available on GOV.UK.

The government will legislate to give effect to these reforms as soon as parliamentary time allows. A full impact assessment will be published alongside the legislative reforms.

The reforms to the credit union common bond form part of a broader package of measures to support improved access to financial products and services under the Financial Inclusion Strategy. The Strategy itself will be reviewed two years after publication to assess its overall progress.

The Financial Conduct Authority is a non-governmental body which is independent from the Treasury.

The Financial Conduct Authority announced its intention to consult on some aspects of the UK Listings Rules for investment entities and to complete the work by the end of the year. Further detail is available at:

https://www.fca.org.uk/news/statements/uk-listing-rules-investment-entities-review.

The Financial Conduct Authority's (FCA’s) Consumer Duty requires firms to act in good faith, prevent foreseeable harm, and act in the best interests of consumers.

All FCA-authorised firms are required to comply with the Consumer Duty.

The FCA has extensive powers to enforce regulations and to impose penalties for breaches of regulation. This includes powers to investigate potential breaches, issue fines and ultimately to withdraw authorisation in the case of serious breaches.

The FCA is operationally independent and the Treasury has no role in ensuring firms meet their responsibilities under the Consumer Duty. The Treasury continues to work closely with the FCA to hold it to account for delivering against its statutory objectives, including its objective to secure an appropriate degree of consumer protection in relation to the activities it regulates.

The final report of the cross-government Motor Insurance Taskforce sets out the actions being taken by government, regulators and industry to help reduce premium costs. Departments, regulators and industry are now taking forward the relevant actions.

The VOA attends a small number of overseas conferences which are an important part of sharing expertise, innovation and best practice.

The cost of Valuation Office Agency attendance at the five international conferences is set out in the table below. This includes the cost of tickets, flights, accommodation and other travel expenses.

The National Housing Bank is the public financial institution focused on homebuilding.

The National Housing Bank will work with other Public Financial Institutions, including the National Wealth Fund, to support its objectives.

The government has published a guide to the Public Financial Institutions here: https://www.gov.uk/government/publications/an-introduction-to-the-uk-public-investment-landscape

Transport is one of the National Wealth Fund’s priority sectors.

As per HM Treasury’s Annual Report and Accounts (ARA), the department spent £41,770 on special severance payments in 2023/24 and £206,772 in 2024/25. The figures for 2025/26 are not yet finalised and will be published in the next ARA.

The British Business Bank’s Five Year Strategic Plan, published in November 2025, sets a clear focus on improving access to finance for smaller and high-growth businesses, helping crowd in private capital and ensuring more UK companies can reach scale and ultimately access public markets. A strong early‑stage and scale‑up ecosystem is essential to the long‑term depth and competitiveness of the UK’s public equity markets.

In 2025, the Government increased the British Business Bank’s financial capacity to £25.6 billion, marking a major step change in its ability to support UK businesses to start and scale.

The Government have also delivered an ambitious set of reforms to boost the UK’s capital markets and make it easier to IPO in the UK through an ambitious modernisation of the UK’s listings rules. Taken together, these reforms make it easier to start, scale and list in the UK.

On Monday 16 March, the government published a response to its consultation on reforming the Financial Ombudsman Service (FOS), confirming that the government will legislate to stop the FOS acting as a quasi-regulator and provide greater coherence with the Financial Conduct Authority (FCA).

The reforms will return the FOS to its original role as a simple, impartial dispute resolution service which will enable it to focus on its core purpose of dealing with individual complaints against financial services firms quickly and effectively. The introduction of an absolute time limit and changes to the handling of mass redress events will reduce the number of cases the FOS considers and ensure that complex cross-cutting or historic issues are dealt with appropriately. Together, these reforms should improve complaint resolution times for cases handled by the FOS.

The reforms will benefit both consumers and firms by improving the consistency and predictability of FOS determinations and providing greater certainty for consumers and financial services firms.

This is expected to particularly support small financial services firms who have complaints against them referred to the FOS. The new thematic reports being introduced will make it easier for firms to draw relevant lessons from FOS determinations, which should support improved complaint handling and result in fewer complaints being referred to the FOS. And the new absolute time limit from bringing complaints to the FOS will benefit by being better able to assess potential historic liabilities. Some smaller financial services firms may also be eligible to bring complaints to the FOS themselves, and would also benefit as a complainant.

On Monday 16 March, the government published a response to its consultation on reforming the Financial Ombudsman Service (FOS), confirming that the government will legislate to stop the FOS acting as a quasi-regulator and provide greater coherence with the Financial Conduct Authority (FCA).

The reforms will return the FOS to its original role as a simple, impartial dispute resolution service which will enable it to focus on its core purpose of dealing with individual complaints against financial services firms quickly and effectively. The introduction of an absolute time limit and changes to the handling of mass redress events will reduce the number of cases the FOS considers and ensure that complex cross-cutting or historic issues are dealt with appropriately. Together, these reforms should improve complaint resolution times for cases handled by the FOS.

The reforms will benefit both consumers and firms by improving the consistency and predictability of FOS determinations and providing greater certainty for consumers and financial services firms.

This is expected to particularly support small financial services firms who have complaints against them referred to the FOS. The new thematic reports being introduced will make it easier for firms to draw relevant lessons from FOS determinations, which should support improved complaint handling and result in fewer complaints being referred to the FOS. And the new absolute time limit from bringing complaints to the FOS will benefit by being better able to assess potential historic liabilities. Some smaller financial services firms may also be eligible to bring complaints to the FOS themselves, and would also benefit as a complainant.

On Monday 16 March, the government published a response to its consultation on reforming the Financial Ombudsman Service (FOS), confirming that the government will legislate to stop the FOS acting as a quasi-regulator and provide greater coherence with the Financial Conduct Authority (FCA).

The reforms will return the FOS to its original role as a simple, impartial dispute resolution service which will enable it to focus on its core purpose of dealing with individual complaints against financial services firms quickly and effectively. The introduction of an absolute time limit and changes to the handling of mass redress events will reduce the number of cases the FOS considers and ensure that complex cross-cutting or historic issues are dealt with appropriately. Together, these reforms should improve complaint resolution times for cases handled by the FOS.

The reforms will benefit both consumers and firms by improving the consistency and predictability of FOS determinations and providing greater certainty for consumers and financial services firms.

This is expected to particularly support small financial services firms who have complaints against them referred to the FOS. The new thematic reports being introduced will make it easier for firms to draw relevant lessons from FOS determinations, which should support improved complaint handling and result in fewer complaints being referred to the FOS. And the new absolute time limit from bringing complaints to the FOS will benefit by being better able to assess potential historic liabilities. Some smaller financial services firms may also be eligible to bring complaints to the FOS themselves, and would also benefit as a complainant.

At Autumn Budget 2025, the Government announced that it will consult in early 2026 on introducing a new, simpler ISA product for first time buyers. The new ISA product will be offered in place of the Lifetime ISA.

The consultation will consider how existing Lifetime ISA holders should be treated, including any potential transitional arrangements or transfer options.

It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.