HM Treasury is the government’s economic and finance ministry, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth.
This inquiry will examine quantitative tightening, including its impact on the economy and its fiscal costs. It will also investigate …
Oral Answers to Questions is a regularly scheduled appearance where the Secretary of State and junior minister will answer at the Dispatch Box questions from backbench MPs
Other Commons Chamber appearances can be:Westminster Hall debates are performed in response to backbench MPs or e-petitions asking for a Minister to address a detailed issue
Written Statements are made when a current event is not sufficiently significant to require an Oral Statement, but the House is required to be informed.
HM Treasury does not have Bills currently before Parliament
A Bill to Authorise the use of resources for the year ending with 31 March 2026; to authorise both the issue of sums out of the Consolidated Fund and the application of income for that year; and to appropriate the supply authorised for that year by this Act and by the Supply and Appropriation (Anticipation and Adjustments) Act 2025.
This Bill received Royal Assent on 21st July 2025 and was enacted into law.
A Bill to make provision about secondary Class 1 contributions.
This Bill received Royal Assent on 3rd April 2025 and was enacted into law.
A Bill to make provision about finance.
This Bill received Royal Assent on 20th March 2025 and was enacted into law.
A Bill to amend the Crown Estate Act 1961.
This Bill received Royal Assent on 11th March 2025 and was enacted into law.
A Bill to Authorise the use of resources for the years ending with 31 March 2024, 31 March 2025 and 31 March 2026; to authorise the issue of sums out of the Consolidated Fund for those years; and to appropriate the supply authorised by this Act for the years ending with 31 March 2024 and 31 March 2025.
This Bill received Royal Assent on 11th March 2025 and was enacted into law.
A Bill to make provision for loans or other financial assistance to be provided to, or for the benefit of, the government of Ukraine.
This Bill received Royal Assent on 16th January 2025 and was enacted into law.
A Bill to impose duties on the Treasury and the Office for Budget Responsibility in respect of the announcement of fiscally significant measures.
This Bill received Royal Assent on 10th September 2024 and was enacted into law.
A Bill to authorise the use of resources for the year ending with 31 March 2025; to authorise both the issue of sums out of the Consolidated Fund and the application of income for that year; and to appropriate the supply authorised for that year by this Act and by the Supply and Appropriation (Anticipation and Adjustments) Act 2024.
This Bill received Royal Assent on 30th July 2024 and was enacted into law.
e-Petitions are administered by Parliament and allow members of the public to express support for a particular issue.
If an e-petition reaches 10,000 signatures the Government will issue a written response.
If an e-petition reaches 100,000 signatures the petition becomes eligible for a Parliamentary debate (usually Monday 4.30pm in Westminster Hall).
Raise the income tax personal allowance from £12,570 to £20,000
Gov Responded - 20 Feb 2025 Debated on - 12 May 2025Raise the income tax personal allowance from £12570 to £20000. We think this would help low earners to get off benefits and allow pensioners a decent income.
Don't change inheritance tax relief for working farms
Gov Responded - 5 Dec 2024 Debated on - 10 Feb 2025We think that changing inheritance tax relief for agricultural land will devastate farms nationwide, forcing families to sell land and assets just to stay on their property. We urge the government to keep the current exemptions for working farms.
Don't apply VAT to independent school fees, or remove business rates relief.
Gov Responded - 20 Dec 2024 Debated on - 3 Mar 2025Prevent independent schools from having to pay VAT on fees and incurring business rates as a result of new legislation.
Commons Select Committees are a formally established cross-party group of backbench MPs tasked with holding a Government department to account.
At any time there will be number of ongoing investigations into the work of the Department, or issues which fall within the oversight of the Department. Witnesses can be summoned from within the Government and outside to assist in these inquiries.
Select Committee findings are reported to the Commons, printed, and published on the Parliament website. The government then usually has 60 days to reply to the committee's recommendations.
VAT is chargeable at the reduced rate of 5% on domestic fuel and power. HMRC publishes estimates of the Exchequer cost of tax reliefs, see https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs. The estimated cost of non-structural tax reliefs (December 2024) VAT table shows that the cost estimate for the Reduced Rate of VAT on supplies of domestic fuel and power in 2024-25 was £6,500 million. This represents the cost of the 5% Reduced Rate compared to the Standard Rate of 20%, a relief of 15%. The revenue received at the Reduced Rate may be estimated at 5/15ths of the figure of £6,500 million, or £2,200m (rounded). Figures for previous years are shown in the table.
Business consumers of energy may reclaim VAT on their purchases of energy subject to normal VAT deduction rules.
Climate Change Levy (CCL) is chargeable on the supply of electricity, gas and solid fuels for lighting, heating and power by business operating in the industrial, commercial, agricultural and public services sectors, with certain exclusions. Statistics on CCL receipts from 2014 are published here: Environmental Taxes Bulletin - GOV.UK
This Budget reduces the cost of levies on energy bills to save families £150 on average next year. Combined with the measures on freezing rail fares and freezing fuel duty these policies are forecast to directly cut inflation by over 0.4 percentage points next year, pushing down on mortgage rates and up on growth.
The Annual Investment Allowance allows both incorporated and unincorporated businesses to deduct the entire cost of investment in both main and special rate assets in one go, up to £1 million per year, which covers the investment of 99% of businesses.
In line with the commitments in the 2024 Corporate Tax Roadmap, at Budget the government confirmed it has maintained the parts of the UK Corporate Tax offer that are most important for attracting new investment for the duration of the parliament: the low Corporation Tax main rate of 25%, the generous full expensing offer for plant and machinery and the Annual Investment Allowance.
The government is carefully considering the impact of the Isle of Wight decision on the VAT treatment of the supply of temporary medical staff.
HMRC will publish updated guidance in due course.
The current rules base the High Income Child Benefit Charge on the income of one parent or carer. Basing the charge on household income, or the individual incomes of both parents or carers, would come at a significant fiscal cost if we were to ensure that no families lose out.
Regarding the 30 hours childcare offer, the £100,000 earnings threshold for eligibility is currently assessed on a per parent basis, rather than household income for two main reasons. First, aligning to the existing boundary in the tax system makes it easy for parents to understand what they are entitled to. Second, this policy approach means there is no incentive for the lower earner in a household to reduce their income, for example through working fewer hours, to be eligible.
Alcohol duty is paid at the point of production or import, before it is diverted to either the on-trade or the off-trade. It is therefore not possible to freeze duty rates exclusively for the on-trade.
HMRC’s latest published estimate on the effect of a 1% change in spirits duties on tax receipts can be found here: Direct effects of illustrative tax changes bulletin (June 2025) - GOV.UK.
At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact to GDP, nor competition between the on and off trades.
Following a detailed review between 2020 and 2023, a new duty system was introduced in August 2023. Information about this review and its outcomes are available here:
www.gov.uk/government/consultations/the-new-alcohol-duty-system-consultation
The Government plans to evaluate the 2023 alcohol duty reforms in late-2026, in line with our commitment to do so three years after they took effect.
At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact to GDP, nor competition between the on and off trades.
Following a detailed review between 2020 and 2023, a new duty system was introduced in August 2023. Information about this review and its outcomes are available here:
www.gov.uk/government/consultations/the-new-alcohol-duty-system-consultation
The Government plans to evaluate the 2023 alcohol duty reforms in late-2026, in line with our commitment to do so three years after they took effect.
At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact to GDP, nor competition between the on and off trades.
Following a detailed review between 2020 and 2023, a new duty system was introduced in August 2023. Information about this review and its outcomes are available here:
www.gov.uk/government/consultations/the-new-alcohol-duty-system-consultation
The Government plans to evaluate the 2023 alcohol duty reforms in late-2026, in line with our commitment to do so three years after they took effect.
The government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.
International collaboration is vital to ensure that we can collectively unlock AI’s potential. The UK remains committed to working internationally, including through fora such as the Financial Stability Board (FSB), to support the safe adoption of AI in the financial sector.
At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to previous levels. The planned increase in line with inflation for 2026-27 will not take place, with the government uprating fuel duty rates by RPI from April 2027. This will save the average car driver £49 next year compared to previous plans.
The Government considers the impact of fuel duty on the economy, including households and businesses, with decisions on rates made at fiscal events.
The Government recognises that, when provided responsibly, credit can play an important role in helping people manage unexpected expenses and smooth their cash flow. Access to suitable, affordable credit products can support people’s financial resilience and help them achieve their financial goals.
For this reason, the Government is committed to improving access to affordable credit. HM Treasury regularly engages with lenders on a range of policy matters, including how the provision of affordable credit can be strengthened.
The Government’s recently published Financial Inclusion Strategy sets out an ambitious package of measures to improve access to affordable credit. This includes support for the community finance sector and a pilot of a small-sum lending scheme, run by Fair4All Finance, which will test the offer of small value loans from a mainstream lender.
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. HM Treasury has already announced measures to support the sector and is currently progressing these.
For building societies specifically, HM Treasury has committed to progressing further amendments to the Building Societies Act 1986. This follows two statutory instruments being laid in October 2024, which raise the turnover limit for the definition of a small business for the purpose of wholesale funding limit exclusions, remove outdated director retirement requirements, and simplify how balance sheets are signed. These will create a more supportive legislative environment for building societies.
To support all financial mutuals, HM Treasury has also asked the Prudential Regulation Authority and Financial Conduct Authority to produce a report on the current landscape of the sector. This is expected to be published before the end of 2025. The government also welcomed the establishment of the Mutual and Co-operative Sector Business Council to consider mutual and co-operative solutions. The government also published the Financial Services Growth and Competitiveness Strategy, which will support all organisations in the financial services sector and encourages the sector to continue to work in partnership with government to deliver growth.
As stated in my previous answer, the Chancellor has engaged with the Chinese Government on a number of occasions to discuss economic and financial issues. Data on ministers' overseas travel and meetings with external individuals and organisations is published every quarter. This can be found here and here.
The Chancellor is committed to exploring a reparations loan to enable the value of sanctioned Russian sovereign assets held in the UK to be directed to supporting Ukraine.
The government continues to work in partnership with international partners including the G7 and European Union to achieve this.
To date, the UK has provided £21.8bn in support for Ukraine. This includes the commitment to the provide £2.26bn as part of the $50bn Extraordinary Revenue Acceleration Scheme for Ukraine, which utilised the extraordinary profits generated from immobilised Russian Sovereign Assets held in the EU.
The Chancellor is committed to exploring a reparations loan to enable the value of sanctioned Russian sovereign assets held in the UK to be directed to supporting Ukraine.
The government continues to work in partnership with international partners including the G7 and European Union to achieve this.
To date, the UK has provided £21.8bn in support for Ukraine. This includes the commitment to the provide £2.26bn as part of the $50bn Extraordinary Revenue Acceleration Scheme for Ukraine, which utilised the extraordinary profits generated from immobilised Russian Sovereign Assets held in the EU.
The Government has announced a Food Inflation Gateway to assess and monitor regulation that could add to food prices. This will improve coordination and give food businesses a clear line of sight on upcoming regulatory changes, helping to keep costs down
The Government is also negotiating an agri-food agreement with the EU to reduce trade frictions, which is expected to save businesses up to £200 per fresh food shipment, helping to limit cost pressures across supply chains.
In addition, supermarkets will see a reduction in their total business rates bills in 2026/27 compared with 2025/26, and this will be kept under review at the next revaluation. The Office for Budget Responsibility does not expect changes in business rates to have a material impact on food inflation.
Overall, the OBR’s forecast shows government policy will reduce CPI inflation by 0.4 percentage points in 2026/27. This is the biggest near-term reduction in inflation due to government policy ever forecast by the OBR at a single fiscal event, outside of a crisis.
HMT undertakes an evidence-based approach to ensure that counter-terrorism sanctions are used in a timely and effective manner in support of national security and to prevent terrorism, including addressing terrorist financing risks.
HMT assesses every instance of reported non-compliance with financial sanctions, working in collaboration with law enforcement partners where necessary, and takes action in all cases where we conclude a breach has occurred.
The government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.
As set out in the Bank of England and Financial Conduct Authority’s October 2022 discussion paper on artificial intelligence and machine learning, a range of existing legal requirements and guidance are relevant to the UK financial sector’s use of AI across the AI lifecycle. This includes in relation to data quality.
The government’s response to the AI Opportunities Action Plan also sets out the steps we will take to responsibly unlock data assets in the public and private sector.
The Government recognises the importance of ensuring people can access the financial products and services they need. The Government is committed to ensuring high standards of financial inclusion across the financial services sector.
The Payment Services Regulations 2017 require firms to apply strong customer authentication when users access their payment account online, initiate an electronic payment or carry out any action through a remote channel (e.g. via the internet) which may carry a risk of payment fraud, unless an exemption applies (e.g. for low-value purchases). Firms are able to choose which methods of authentication they apply.
The Financial Conduct Authority (FCA), which is independent of the Government, issues detailed standards for firms on strong customer authentication. The FCA expects firms to develop strong customer authentication solutions that work for all groups of consumers, including those with protected characteristics. This means it may be necessary for firms to provide different methods of authentication, for example when customers face difficulties accessing or using a mobile device.
The FCA also requires authorised financial services firms to comply with their ‘Consumer Duty’, which requires them to deliver good outcomes for retail customers. The Consumer Duty has rules and guidance covering key aspects of the firm-customer relationship. For example, it requires firms to ensure that the design of the product or service meets the needs, characteristics and objectives of their target consumer market. More detail on the Consumer Duty can be found on the FCA’s website: https://www.fca.org.uk/firms/consumer-duty
It is important that people are able to take advantage of digital innovation, and the opportunities this presents, to manage their money more effectively. This is why the issues of access to banking and digital inclusion have been considered as key areas of focus in the Government's recently published Financial Inclusion Strategy.
The Government recognises the importance of ensuring people can access the financial products and services they need. The Government is committed to ensuring high standards of financial inclusion across the financial services sector.
The Payment Services Regulations 2017 require firms to apply strong customer authentication when users access their payment account online, initiate an electronic payment or carry out any action through a remote channel (e.g. via the internet) which may carry a risk of payment fraud, unless an exemption applies (e.g. for low-value purchases). Firms are able to choose which methods of authentication they apply.
The Financial Conduct Authority (FCA), which is independent of the Government, issues detailed standards for firms on strong customer authentication. The FCA expects firms to develop strong customer authentication solutions that work for all groups of consumers, including those with protected characteristics. This means it may be necessary for firms to provide different methods of authentication, for example when customers face difficulties accessing or using a mobile device.
The FCA also requires authorised financial services firms to comply with their ‘Consumer Duty’, which requires them to deliver good outcomes for retail customers. The Consumer Duty has rules and guidance covering key aspects of the firm-customer relationship. For example, it requires firms to ensure that the design of the product or service meets the needs, characteristics and objectives of their target consumer market. More detail on the Consumer Duty can be found on the FCA’s website: https://www.fca.org.uk/firms/consumer-duty
It is important that people are able to take advantage of digital innovation, and the opportunities this presents, to manage their money more effectively. This is why the issues of access to banking and digital inclusion have been considered as key areas of focus in the Government's recently published Financial Inclusion Strategy.
The Government recognises the importance of ensuring people can access the financial products and services they need. The Government is committed to ensuring high standards of financial inclusion across the financial services sector.
The Payment Services Regulations 2017 require firms to apply strong customer authentication when users access their payment account online, initiate an electronic payment or carry out any action through a remote channel (e.g. via the internet) which may carry a risk of payment fraud, unless an exemption applies (e.g. for low-value purchases). Firms are able to choose which methods of authentication they apply.
The Financial Conduct Authority (FCA), which is independent of the Government, issues detailed standards for firms on strong customer authentication. The FCA expects firms to develop strong customer authentication solutions that work for all groups of consumers, including those with protected characteristics. This means it may be necessary for firms to provide different methods of authentication, for example when customers face difficulties accessing or using a mobile device.
The FCA also requires authorised financial services firms to comply with their ‘Consumer Duty’, which requires them to deliver good outcomes for retail customers. The Consumer Duty has rules and guidance covering key aspects of the firm-customer relationship. For example, it requires firms to ensure that the design of the product or service meets the needs, characteristics and objectives of their target consumer market. More detail on the Consumer Duty can be found on the FCA’s website: https://www.fca.org.uk/firms/consumer-duty
It is important that people are able to take advantage of digital innovation, and the opportunities this presents, to manage their money more effectively. This is why the issues of access to banking and digital inclusion have been considered as key areas of focus in the Government's recently published Financial Inclusion Strategy.
The Government recognises the difficulties some prospective first-time buyers face in buying a home and is committed to helping them get on the housing ladder.
The new Mortgage Guarantee Scheme is now permanently available to lenders, and is designed to support and sustain the availability of low deposit mortgage products for credit-worthy borrowers. 95% loan-to-value mortgage products can be particularly important for first-time buyers who may struggle to raise larger deposits, and the scheme aims to support this segment of the UK mortgage market.
Earlier this month, I published the Government’s Financial Inclusion Strategy setting out an ambitious programme of measures to improve financial inclusion and resilience for underserved groups across the UK. The Strategy was developed alongside a committee of industry and consumer representatives and seeks to tackle a range of barriers individuals face in accessing financial products, including a key focus on improving access to credit.
As part of developing the strategy, the Government has engaged with Financial Inclusion Committee members and other organisations on how to measure its impact. The Strategy’s implementation will be reviewed in two years’ time to provide an update on interventions and relevant outcomes-based metrics, which will reflect on the progress made across the sector.
The Government will continue to work closely with the sector as we implement the strategy, including continuing to engage with firms on interventions to strengthen the provision of affordable credit.
I refer the member to the answer given to UIN 92928 on 24 November 2025.
Whilst the government does not currently hold these figures, 39% of employers offer salary sacrifice and 35% of employees use it. We would expect that the vast majority of pension schemes using salary sacrifice include workers covered by pensions automatic enrolment. Automatic enrolment applies to workers aged between 22 and the State Pension age and earning at least £10,000 a year. The latest figures indicate that the majority (94%) of employees using salary sacrifice are eligible for auto-enrolment.
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.
The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Its rules ensure cash continues to be a viable method of payment for the millions of people who depend on it and help businesses to continue to accept cash by providing reasonable access to cash deposit facilities.
It is for each business to decide on the forms of payment it chooses to accept. This will be based on a variety of factors, including cost and customer preferences. The Government does not hold data on the number and proportion of businesses who only accept cash.
The UK uses the Statutory Residence Test (SRT) to determine UK residency for tax purposes. UK tax residents normally pay tax on their worldwide income and gains, while non-UK residents only pay UK tax on their UK income and gains.
The Government’s priority is improving the UK’s competitiveness internationally and securing economic growth.
The Government is backing entrepreneurs and fostering a pro-business environment by ensuring the tax system is designed to support innovation and economic growth. That is why we have announced a package of measures to back entrepreneurship at Autumn Budget 2025.
The Government keeps tax and residency rules under review to ensure they remain competitive and responsive to the needs of innovative sectors, including technology.
The government is committed to supporting the growth of building societies and all mutual financial services in line with the manifesto commitment to double the size of the mutual and co-operative sector. HM Treasury has already announced measures to support financial mutuals and is currently progressing these.
For building societies, HM Treasury has committed to progressing further amendments to the Building Societies Act 1986. This follows two statutory instruments being laid in October 2024, which allow building societies to accept deposits from a wider range of SMEs, remove outdated director retirement requirements, and simplify how balance sheets are signed. These will create a more supportive legislative environment for building societies.
To support all financial mutuals, HM Treasury has also asked the Prudential Regulation Authority and Financial Conduct Authority to produce a report on the current landscape of the sector. This is expected to be published before the end of 2025. The government also welcomed the establishment of the Mutual and Co-operative Sector Business Council to consider mutual and co-operative solutions. The government also published the Financial Services Growth and Competitiveness Strategy, which will support all organisations in the financial services sector and encourages the sector to continue to work in partnership with government to deliver growth. Finally, the government is also supporting the credit union sector by committing to bringing forward a package of growth-focused reforms to the credit union common bond.
The government continues to engage regularly with mutuals to understand the current barriers they face and consider further opportunities to help the sector grow.
Illegal money lenders — more commonly known as loan sharks — are dangerous criminals capable of inflicting terrible harm on their victims. To combat this, the Government funds specialist Illegal Money Lending Teams (IMLTs) operating across the UK. These teams investigate and prosecute illegal money lenders and offer support to their victims.
Because of the underground nature of illegal money lending, HM Treasury does not have data on the number of victims of illegal money lending each year. However, HM Treasury officials regularly engage with the IMLTs to receive updates on their work, including on prosecutions, support provided to victims, and any key trends. To learn more about the work of the IMLTs, visit the Stop Loan Sharks website: https://www.stoploansharks.co.uk/.
At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to previous levels. The planned increase in line with inflation for 2026-27 will not take place, with the government uprating fuel duty rates by RPI from April 2027. This will save the average car driver £49 next year compared to previous plans.
The Government considers the impact of fuel duty on the economy, including households and businesses, with decisions on rates made at fiscal events.
Certain types of trusts for vulnerable people, including disabled persons trusts, are exempt from inheritance charges which normally apply to other types of trusts. No inheritance tax is charged on payments made to a beneficiary from a disabled persons trust. These are longstanding rules and are not changing.
From 6 April 2027, most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes. This removes distortions resulting from changes that have been made to pensions tax policy over the last decade, which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement.
Following these changes, any unused pension funds or death benefits left to a disabled persons trust on the settlor’s death, will therefore be in scope for inheritance tax in the same way as other assets in the settlor’s estate, such as cash or property. This is the longstanding position for assets settled into a disabled persons trust following the settlor’s death.
The government estimates that more than 90% of estates will continue to have no inheritance tax liability following these changes and the transferable tax-free nil-rate bands mean that estates can continue to pass on up to £1 million without an inheritance tax liability.
At Budget 2025, the government announced that, to allow more time for the sector to prepare for and adapt to the proposed changes in treatment to Employee Car Ownership Schemes (ECOS), its implementation will be delayed to 6 April 2030, with transitional arrangements until April 2032. The tax impact and information notice (TIIN) has been updated to reflect the impact of the changes on the automotive industry. You can find the TIIN here:
The government maintains regular engagement with vehicle manufacturers and the wider automotive industry. The costing has been certified by the Office for Budget Responsibility.
The Government recognises the key role the haulage sector plays in the UK economy and regularly engages with its representatives.
At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to previous levels. The planned increase in line with inflation for 2026-27 will not take place, with the government uprating fuel duty rates by RPI from April 2027. This will save the average HGV driver £843 next year compared to previous plans.
From 1 April 2026, Vehicle Excise Duty (VED) standard rates for Heavy Goods Vehicles (HGVs) and HGV levy rates will be uprated by RPI for 2026-27. Hauliers will not see a real-terms increase in VED or HGV levy liabilities, as rates have increased to keep pace with inflation only.
The Government considers the impact of motoring taxes on the economy, including households and businesses, with decisions on rates made at fiscal events.
On 17 May 2023, the European Commission proposed a revision of the Union Customs Code. The proposal is still subject to EU internal procedures; therefore, we cannot comment on the final proposal. However, we are following these suggested reforms closely, and continue to engage with the EU and business, particularly on potential impacts for UK businesses
Transition plans are central to the UK’s ambition to be a global leader in sustainable finance, supporting clean energy growth and transparency in financial markets, including for large investors and pension funds. Credible transition planning helps allocate capital effectively and builds market confidence.
Earlier this year, the Government consulted on implementation options for transition plans, seeking views on how to take forward transition planning in a way that supports the market’s need for credible and decision-useful information, encourages action in line with the UK climate commitments, and drives economic growth. This consultation closed on 17 September. The Government is currently processing feedback and will publish its response in due course.
The UK’s alcohol duty system balances protecting the public finances and promoting health.
There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here.
We’re committed to helping pensioners with the cost of living and ensuring financial security in retirement. The State Pension is the foundation of that support. At Autumn Budget 2025 we announced that, in line with the Government’s commitment to the Triple Lock throughout this parliament, over 12 million pensioners will benefit from a 4.8% increase to their basic or new State Pension in April 2026, increasing their income by up to £575 a year. This follows a substantial increase in 2025/26.
The Pension Credit Standard Minimum Guarantee will increase by 4.8% in April 2026, from £227.10 to £238 a week for a single pensioner and from £346.60 to £363.25 a week for a couple, protecting the income of the poorest pensioners. Those in receipt of Pension Credit will also automatically receive the Cold Weather Payment alongside other benefits
The Winter Fuel Payment will benefit over three quarters of pensioners for the duration of this parliament, targeting help to those on lower and middle incomes while ensuring fairness for pensioners and taxpayers
To reduce cost of living pressures immediately, the Budget removed around £150 on average off household energy bills from April 2026 by ending the Energy Company Obligation and taking some of the expensive legacy levies off bills
The Government knows that more needs to be done to support vulnerable households struggling with their energy bills. That's why we are expanding the Warm Home Discount to around an additional 2.7 million households. From this winter, around 6 million low-income households will receive the £150 support to help with their energy bill costs.
We are also providing support for low-income households through our Warm Homes Plan which will support investment in insulation and low carbon heating – upgrading millions of homes over this Parliament. At the recent Budget, we announced £1.5 billion in new funding to support households facing fuel poverty.
We’re committed to helping pensioners with the cost of living and ensuring financial security in retirement. The State Pension is the foundation of that support. At Autumn Budget 2025 we announced that, in line with the Government’s commitment to the Triple Lock throughout this parliament, over 12 million pensioners will benefit from a 4.8% increase to their basic or new State Pension in April 2026, increasing their income by up to £575 a year. This follows a substantial increase in 2025/26.
The Pension Credit Standard Minimum Guarantee will increase by 4.8% in April 2026, from £227.10 to £238 a week for a single pensioner and from £346.60 to £363.25 a week for a couple, protecting the income of the poorest pensioners. Those in receipt of Pension Credit will also automatically receive the Cold Weather Payment alongside other benefits
The Winter Fuel Payment will benefit over three quarters of pensioners for the duration of this parliament, targeting help to those on lower and middle incomes while ensuring fairness for pensioners and taxpayers
To reduce cost of living pressures immediately, the Budget removed around £150 on average off household energy bills from April 2026 by ending the Energy Company Obligation and taking some of the expensive legacy levies off bills
The Government knows that more needs to be done to support vulnerable households struggling with their energy bills. That's why we are expanding the Warm Home Discount to around an additional 2.7 million households. From this winter, around 6 million low-income households will receive the £150 support to help with their energy bill costs.
We are also providing support for low-income households through our Warm Homes Plan which will support investment in insulation and low carbon heating – upgrading millions of homes over this Parliament. At the recent Budget, we announced £1.5 billion in new funding to support households facing fuel poverty.
Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament. The main route to higher living standards is through good, productive jobs, stable employment, and a thriving business environment.
The government is taking action to cut the cost of living and bring down inflation. At the Budget 2025, the government announced that it would deliver a set of measures to remove an average of £150 from household energy bills from April 2026 and would implement a one-year freeze on regulated train fares and prescription charges.
The government is prioritising cutting the cost of living and improving living standards across the UK, including for residents in Greater Manchester. The government recognises that people are still feeling the squeeze on their finances with essential areas such as energy, food and housing remaining too high. That is why we have announced that we are taking around £150 on average off household energy bills, expanding the £150 Warm Home Discount to 6 million lower income households, freezing regulated rail fares and NHS prescription fees for one-year, and extending temporary 5p fuel duty cut until the end of August 2026.
The deadline for payment of Inheritance Tax (IHT) is the end of the sixth month after the month in which the death occurs. Personal representatives (PRs) are required to make a payment of IHT before applying for probate. This is a longstanding requirement which ensures that the tax due can be collected quickly and efficiently.
HMRC offers several payment options if there are not sufficient liquid funds in the estate to pay IHT before applying for probate, including the Direct Payment Scheme and the option to pay IHT by yearly instalments. For assets which are eligible for payment of IHT by instalments, only the first instalment will be due before PRs can proceed to apply for probate. Further information on IHT payment options is available at: https://www.gov.uk/paying-inheritance-tax
In certain circumstances, PRs may also apply to HMRC to defer payment of the IHT until probate has been granted (a ‘grant on credit’). Once probate has been issued, the PRs will be expected to pay the outstanding tax as soon as possible. Further information on this option is available here: https://www.gov.uk/guidance/applying-for-a-grant-on-credit-for-inheritance-tax
HM Courts & Tribunals Service has invested in more staff, alongside system and process improvements to reduce and maintain lower processing times for probate applications during the last year. The Ministry of Justice publishes regular data on probate timeliness in the quarterly family court statistics bulletin: https://www.gov.uk/government/collections/family-court-statistics-quarterly
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
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 report by the independent Centre for the Analysis of Taxation (CenTax) sets out its other potential amendments to the policy are not, in its own words, a “silver bullet”. For example, CenTax acknowledge the proposal for a minimum share test is less effective than the Government’s reforms in raising revenue from the wealthiest estates, could be exposed to tax planning opportunities, would not necessarily prevent wealthy individuals buying land for inheritance tax purposes, and would mean double the number of estates being affected by the reforms (and largely estates below £2 million).
At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to previous levels. The planned increase in line with inflation for 2026-27 will not take place, with the government increasing fuel duty rates in line with RPI from April 2027. This will save the average van driver £100 next year compared to previous plans, and the average HGV driver more than £800.
The Government considers the impact of fuel duty on the economy, including households and businesses, with decisions on rates made at fiscal events.
The number of people forecast to pay tax by marginal rate from 2023-24 to 2028-29 can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.
A response was provided for Question 22764 on 13 January 2025. The government does not comment on specific financial market movements.
Pursuant to WPQ 91913, in 2025 the National Wealth Fund’s Regional Director for Northern Ireland has met with the Northern Ireland Executive more than once to discuss investment opportunities.
HMRC treats all informants with the highest levels of confidentiality and security in line with the Regulation of Investigatory Powers Act (RIPA) 2000 and the Covert Human Intelligence Sources (CHIS) Codes of Practice.
There is no legal obligation on HMRC to participate in an employment tribunal of an informant. However, if requested, HMRC can provide a disclosure to the informant or their legal representative to support any employment tribunal under Sec 18 (2)(c) Commissioners for Revenue and Customs Act 2005.
At Autumn Budget on 26 November 2025 the Government launched the Rewards for informants of high value tax fraud. This scheme is designed to target serious non-compliance involving large corporates, wealthy individuals, offshore and avoidance schemes. Informants can receive a reward of between 15 and 30% when they provide information which leads directly to HMRC collecting more than £1.5M tax. HMRC have published eligibility criteria for the scheme at https://www.gov.uk/guidance/reporting-serious-tax-avoidance-and-evasion.
HMRC has previously published data on the total amount of rewards paid annually through the standard informants reward scheme and will continue to do so. To protect the confidentiality of informants we do not publish the number of rewards or size of individual rewards.
HM Revenue & Customs (HMRC) has a robust strategy to tackle the illicit tobacco trade which can be found here https://www.gov.uk/government/publications/stubbing-out-the-problem-a-new-strategy-to-tackle-illicit-tobacco/stubbing-out-the-problem-a-new-strategy-to-tackle-illicit-tobacco
This strategy combines legislation, controls, operations and sanctions to penalise and deter those involved in the illegal trade of tobacco products.
HMRC works together with partner agencies such as Border Force and Trading Standards in tackling illicit tobacco. Penalties provide a strong deterrent effect and play a key role in enforcement activity. Published data on seizures, criminal investigations and civil penalties related to tobacco can be found here https://www.gov.uk/government/publications/annual-outputs-for-tacking-tobacco-smuggling
The scope, impact and effectiveness of penalties are continually reviewed as part of the wider tobacco strategy. Strong enforcement supported by robust penalties has contributed to a significant reduction in the estimated duty gap by around one third for cigarettes (from 16.9% in 2005 to 10.5% in 2023 to 2024) and by nearly two thirds for hand-rolling tobacco (from 65.2% to 22.9% over the same period).