HM Treasury

(a) This information is not held centrally due to there being no definition of an “in-grade promotion”.

(b) Please see below a table which sets out promotions in the year 2024-25 by box marking in the previous year (2023-24) .

Please note that data that could identify individuals has been suppressed. All proportions have been rounded to the nearest whole percentage; and any proportions based on less than 30 employees have been suppressed.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

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, fixing the public finances, and funding public services. 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.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

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, fixing the public finances, and funding public services. 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.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

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, fixing the public finances, and funding public services. 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.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

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, fixing the public finances, and funding public services. 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.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

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, fixing the public finances, and funding public services. 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.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. The Chancellor and other Ministers meet with a range of businesses and their representatives to understand the impacts of Government policy, including hospitality businesses.

The government is investing in HMRC’s digital services to simplify tax filing, improve accuracy and reduce burdens on taxpayers.

Improvements to digital journeys will make it easier for taxpayers to register, deregister or manage their obligations online, reducing the need for phone contact.

Making Tax Digital for Income Tax will give sole traders and landlords an up-to-date view of their tax position during the year and reduce errors at the year end.

HMRC is also expanding the use of third-party data and pre-population across Income Tax Self Assessment, allowing returns to be completed more quickly without re-entering information HMRC already holds.

Where tax affairs are straightforward, HMRC also uses third-party data to issue Simple Assessments, removing the need for an Income Tax Self Assessment return altogether.

HMRC’s best estimate is that in 2021/22 there was £150 million of overseas seller non-compliance occurring through online marketplaces as referenced by the National Audit Office report entitled ‘Tackling tax evasion in high street and online retail’ published in September 2024.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic.

To support with bill increases, the Government has introduced a generous support package worth £4.3 billion over the next 3 years, including support to help ratepayers to transition to their new bill.

As a result, over half of all ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.

The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties in England. The Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties, including distribution warehouses used by online giants.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic.

To support with bill increases, the Government has introduced a generous support package worth £4.3 billion over the next 3 years, including support to help ratepayers to transition to their new bill.

As a result, over half of all ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.

The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties in England. The Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties, including distribution warehouses used by online giants.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic.

To support with bill increases, the Government has introduced a generous support package worth £4.3 billion over the next 3 years, including support to help ratepayers to transition to their new bill.

As a result, over half of all ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.

The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties in England. The Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties, including distribution warehouses used by online giants.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Information on the average number of working days lost to sickness within the department for 2024 - 2025 is published annually through the HM Treasury annual report and accounts at the following web address: HM Treasury annual report and accounts 2024 to 2025 - GOV.UK (Page 102).

This information can also be found for HM Treasury’s executive agencies at the following web addresses:

Government Internal Audit Agency: GIAA Annual Report and Accounts 2024-2025 - GOV.UK (Page 78);

UK Debt Management Office: UK Debt Management Office and Debt Management Account annual report and accounts, 2024 to 2025 - GOV.UK (Page 67).

HM Treasury does not issue performance warnings to those who exceed the absence trigger point as absence triggers are managed under the attendance management policy.

The government is committed to supporting the growth of building societies in line with the manifesto commitment to double the size of the mutual and co-operative sector. As part of this, the government is committed to ensuring that building societies can operate in a modern and supportive legislative environment.

On 14 October 2024, the government introduced two statutory instruments to modernise the 1986 Act. The Building Societies Act 1986 (Amendment of Small Business Turnover Limit) Order 2024 came into force on 4 November 2024 and the Building Societies Act 1986 (Modifications) Order 2024 came into force on 6 January 2025.

The government will look to give effect to the further powers enabled through the Building Societies Act 1986 (Amendment) Act 2024 in due course.

There have been zero settlement agreements made to departing staff in the last year.

HMRC uses the Customs Declaration Service (CDS) to manage the clearance of goods. This digital service successfully handles millions of customs declarations every month.

No specific assessment of the potential impact of expanding digital customs clearance systems on levels of administration undertaken by UK traders has been undertaken. Estimates of the administrative burden of import and export declarations for trade between Great Britain and the European Union are published at the following link: Estimating the customs administrative burden of 2022 declarations - GOV.UK.

HMRC is committed to making customs processes as simple as possible while ensuring effective checks are in place at the border, and we continue to work closely with the border industry to streamline processes and support the flow of legitimate goods.

The Government recognises the benefits from trade digitalisation for business and management of the goods border. The UK was the first G7 country to put electronic trade documents on the same legal footing as paper documents. The Trade Strategy sets out plans to make sure government and traders alike harness digitalisation to speed up and simplify process. As part of this HMRC is working with industry partners to test how commercial data drawn directly from electronic paperwork can be read and processed by HMRC to meet customs requirements.

Credit unions are regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) to ensure the stability and soundness of the sector. The regulators are independent and make decisions on the regulation of credit unions in line with their statutory objectives.

Credit unions themselves are not insurance providers. Following the Financial Services and Markets Act 2023, credit unions were given clearer permissions to act as distributors, enabling their members to access insurance products through partner firms. This does not allow credit unions to underwrite insurance themselves, and any arrangements made under these rules would be subject to the regulators' consumer protection rules.

In response to a request from HM Treasury, the PRA and FCA published reports on the mutuals sector on 5 December. As part of this, the regulators have committed to reviewing the regulatory framework governing credit unions.

The UK is a member of the World Customs Organisation (WCO) and a contracting party to the World Trade Organisation’s (WTO) Trade Facilitation Agreement (TFA).

The UK is fully committed to the standards set by the WCO and the obligations set out in the TFA. The TFA aims to modernise and simplify international trade procedures to reduce costs, delays, and uncertainties at borders.

The UK also engaged constructively with the WTO’s recent Trade Policy Review of the UK. Further information on which can be found at: https://www.gov.uk/government/speeches/united-kingdoms-trade-policy-review-closing-statement-from-the-uk

The amount of business rates paid on each property is based on the Rateable Value of the property, assessed by the Valuation Office Agency, and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years.

Revaluations ensure that the rateable values of properties remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

The next revaluation will take effect from 1 April 2026 based on values from 1 April 2024.

The number of Child Trust Funds that have matured and have not been claimed or transferred to an ISA, and the value of funds held in these accounts, can be found in the Child Trust Fund tables of the Annual Savings Statistics.

https://www.gov.uk/government/statistics/annual-savings-statistics-2025

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.

eVED is designed to replace fuel duty for electric and plug-in hybrid cars. This means it will apply to cars driven by those who are wholly or partially exempt from Vehicle Excise Duty (VED), but where their petrol or diesel equivalents would be subject to fuel duty. This includes those who receive the mobility component of certain disability-related benefits (principally Disability Living Allowance or Personal Independence Payment). These groups will continue to receive the same VED exemptions as they do now but will not be exempt from eVED, as they are not exempt from fuel duty.

As with petrol/diesel vehicles where fuel duty applies, eVED will also apply to cars that are leased. The leasing company will typically be responsible for paying eVED and can choose how to pass on to their customers.

In July 2025, in its Fiscal Risks and Sustainability assessment, the independent Office for Budget Responsibility assessed there was a low risk to the public finances of increasing self-employment. The risk was assessed to have decreased since the last assessment in July 2023.

Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement.

The manner in which a worker is engaged will have consequences for the tax that they, and their engagers, have to pay. Most agency workers must be treated as employees for income tax and National Insurance contributions (NICs) purposes by the agencies that pay them.

These agencies are required to make deductions of income tax and employee NICs, where these are due, from the workers’ pay in the same way and at the same level as with direct employees. The agencies will also be liable to pay employer NICs, where these are due, in respect of payments to the workers.

HMRC publish guidance on determining employment status: https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm0500.

HMRC have also published guidance on agency rules and examples of where the rules apply: https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm2000.

In July 2025, in its Fiscal Risks and Sustainability assessment, the independent Office for Budget Responsibility assessed there was a low risk to the public finances of increasing self-employment. The risk was assessed to have decreased since the last assessment in July 2023.

Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement.

The manner in which a worker is engaged will have consequences for the tax that they, and their engagers, have to pay. Most agency workers must be treated as employees for income tax and National Insurance contributions (NICs) purposes by the agencies that pay them.

These agencies are required to make deductions of income tax and employee NICs, where these are due, from the workers’ pay in the same way and at the same level as with direct employees. The agencies will also be liable to pay employer NICs, where these are due, in respect of payments to the workers.

HMRC publish guidance on determining employment status: https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm0500.

HMRC have also published guidance on agency rules and examples of where the rules apply: https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm2000.

In 2024-25, the government raised £10.0 billion through green gilts and green savings bonds. The government plans to issue a total of £10.0 billion of green finance in 2025-26, subject to demand and market conditions. The amount of Green Financing to be issued in each financial year will be announced by HM Treasury as part of the annual government financing remit.

The Green Financing Framework, published in 2021 and updated in 2025, explains how proceeds from green gilts and NS&I’s retail Green Savings Bonds will finance public expenditures that demonstrate a direct and positive environmental impact.

The Framework includes guidelines on the types of expenditures that can be included in the Programme and commits the government to annual allocation reporting. Eligible expenditures are drawn from departments’ confirmed Spending Review settlements and assessed on the basis of their contribution to the government’s climate and environmental objectives. Details of the allocation of expenditure are normally published each year in the Green Financing Allocation Report, most recently published in October2024.

In 2024-25, the government raised £10.0 billion through green gilts and green savings bonds. The government plans to issue a total of £10.0 billion of green finance in 2025-26, subject to demand and market conditions. The amount of Green Financing to be issued in each financial year will be announced by HM Treasury as part of the annual government financing remit.

The Green Financing Framework, published in 2021 and updated in 2025, explains how proceeds from green gilts and NS&I’s retail Green Savings Bonds will finance public expenditures that demonstrate a direct and positive environmental impact.

The Framework includes guidelines on the types of expenditures that can be included in the Programme and commits the government to annual allocation reporting. Eligible expenditures are drawn from departments’ confirmed Spending Review settlements and assessed on the basis of their contribution to the government’s climate and environmental objectives. Details of the allocation of expenditure are normally published each year in the Green Financing Allocation Report, most recently published in October2024.

In 2024-25, the government raised £10.0 billion through green gilts and green savings bonds. The government plans to issue a total of £10.0 billion of green finance in 2025-26, subject to demand and market conditions. The amount of Green Financing to be issued in each financial year will be announced by HM Treasury as part of the annual government financing remit.

The Green Financing Framework, published in 2021 and updated in 2025, explains how proceeds from green gilts and NS&I’s retail Green Savings Bonds will finance public expenditures that demonstrate a direct and positive environmental impact.

The Framework includes guidelines on the types of expenditures that can be included in the Programme and commits the government to annual allocation reporting. Eligible expenditures are drawn from departments’ confirmed Spending Review settlements and assessed on the basis of their contribution to the government’s climate and environmental objectives. Details of the allocation of expenditure are normally published each year in the Green Financing Allocation Report, most recently published in October2024.

Australia imposes some of the highest tobacco duty rates globally with excise accounting for a significant share of retail price. In the UK, tobacco duty aims to both raise revenue and reduce harm to public health by discouraging smoking. High duty rates make tobacco less affordable and are a proven way to reduce smoking prevalence and have helped reduce the percentage of adult smokers in the UK from 26% in 2000 to 10.6% in 2024.

The illicit tobacco market is dominated by organised crime groups that make money by smuggling and selling illicit tobacco products in the UK. Strong enforcement is essential in tackling the illicit tobacco market. HM Revenue and Customs and Border Force have had illicit tobacco strategies in place since 2000. Our latest strategy, “Stubbing out the problem”, was published in January 2024. The Department continues to investigate how the illicit tobacco market is evolving, including through its compliance activity, and the extent to which that may affect overall tax receipts seen.

Whilst tobacco duty has been progressively increased over time, successive illicit tobacco strategies have proven effective in tackling the size of the illicit tobacco market, reducing the tobacco duty tax gap from 21.7% in 2005/6 to 13.8% in 2023/24.

The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.

The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on what steps firms should take to ensure redress can be delivered quickly, address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.

Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.

It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. We want to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.

The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on what steps firms should take to ensure redress can be delivered quickly, address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.

Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.

It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. We want to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.

Individual Savings Accounts (ISAs) incentivise saving and investment for future goals by providing tax advantages to individual taxpayers. At Autumn Budget 2025, the government announced that from 6 April 2027, the annual Cash ISA limit will be set at £12,000 within the overall ISA limit of £20,000. Those aged 65 and over will continue to be able to put up to £20,000k in a cash ISA each year as we recognise they might need more flexibility to manage their savings as they approach retirement.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs (electric vehicles) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructure.

The Government has ruled out charging tax based on when or where people drive to protect motorists’ privacy. This means non-UK mileage driven by UK registered cars will fall into scope of eVED, as with fuel duty, which does not vary by basis of where a car is driven.

The vast majority of eVED will be paid on travel in the UK; there were an estimated 225 billion car miles in Great Britain in 2024, and over nine billion miles travelled by car in Northern Ireland in 2023.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructure.

eVED rates will be set at 3p per mile for electric cars, which is around half of the fuel duty rate paid by the average petrol/diesel driver, and 1.5p per mile for plug-in hybrid cars, given that they will continue to be subject to fuel duty on miles driven in petrol/diesel mode.

The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and Fiscal Outlook (EFO). This data reflects the decision made by the previous Government to maintain income tax thresholds at their current levels from April 2021 until April 2028.

3.19 Effect of personal tax threshold freezes on the number of taxpayers in each threshold (millions) [1]

The latest yield of personal tax measures can be found in Table 3.18 in the OBR’s November 2025 EFO. As above, this data reflects the decision made by the previous Government to maintain income tax thresholds at their current levels from April 2021 until April 2028.

3.18 Latest yield of personal tax measures(£billions) [2]

[1] https://obr.uk/download/november-2025-economic-and-fiscal-outlook-detailed-forecast-tables-receipts/?tmstv=1764165511

[2] https://obr.uk/download/november-2025-economic-and-fiscal-outlook-detailed-forecast-tables-receipts/?tmstv=1764165511

The government is keen to ensure that the law governing co-operatives and community benefit societies supports their growth. That is why we are funding the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014.

The Law Commission’s independent review is considering ways to update and modernise the legislation for co-operatives and community benefit societies, ensuring that it fits the nature and needs of these societies as well as ensuring that regulation is proportionate and effective. The Law Commission is considering methods of raising capital, including society shares, as part of its review.

The Law Commission will publish its final recommendations in 2026. Once this is published, the government will carefully consider the Law Commission’s recommendations to understand whether reform of the legislation is needed to ensure these businesses are supported to grow and succeed into the future.