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.
A new duty structure for alcoholic products was introduced in August 2023. This included a new Draught Relief which is a reduced rate of Alcohol Duty applied to qualifying alcoholic products sold in the on-trade (e.g. pubs, bars) under 8.5% ABV.
The government estimated the cost of Draught Relief as £145m for 24-25 and published it here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
At Autumn Budget 2024, the Chancellor also announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including Draught Relief, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
CCTV systems fall within the relevant business rates legislation relating to plant and machinery, and as such are rateable. The presence of small systems may be reflected in the overall value of the building, although more specialist systems may be separately valued as an individual plant and machinery item.
The Valuation Office Agency does not routinely record the proportion of a property's assessment that is attributable to a CCTV system. Therefore, it is not possible to determine how much is levied each year in business rates in respect of CCTV systems.
Council Tax legislation only allows for a formal challenge of multiple properties in exceptional and very specific circumstances, as set in the Council Tax (Alteration of Lists and Appeals) (England) Regulations 2009.
If the Valuation Office Agency (VOA) finds or is alerted to information that suggests that the Council Tax List may be wrong, it will investigate and make corrections if necessary. Once a decision has been made to alter a property’s Council Tax band, the VOA have a duty to consider whether that decision should be applied to other similar properties in the locality and will take appropriate action as necessary.
The VOA is unable to disclose the outcome of any subsequent reviews of neighbouring properties, due to its strict duty to taxpayer confidentiality under the Commissioners for Revenue and Customs Act.
The Government recognises the damage caused to the tax system by those that promote tax avoidance schemes. It takes action to prevent that damage, for example by publishing details of schemes and promoters to help customers to steer clear of or otherwise exit such schemes.
The Government is determined to do more to close in on promoters of marketed tax avoidance and recently consulted on a package of measures to strengthen existing powers. This included a proposal to introduce a Universal Stop Notice. It will respond to this consultation in due course.
The Government keeps all taxes under review, and the Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
The Approved Mileage Allowance Payment rates are used by employers to reimburse an employee's expenses, tax free, for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (when using simplified motoring expenses), and can be used by organisations to reimburse volunteers who use their own vehicle for voluntary purposes.
Employees can claim up to 45p/mile for the first 10,000 miles annually, followed by up to 25p/mile thereafter. An additional 5p/mile can be claimed for each passenger transported.
The AMAP rates are not mandatory, and employers can choose to pay more or less than the AMAP rate. It is therefore ultimately up to employers to determine the rate at which they reimburse their employees.
The government keeps all taxes under review and the Chancellor makes decisions on tax policy at fiscal events.
The Stormont House Agreement between the UK Government and the Northern Ireland Executive agreed, in principle, for the power to set the rate of Corporation Tax in Northern Ireland on certain trading profits to be devolved to the Northern Ireland Assembly.
It was agreed that the Executive would need to formally request the power to change the Corporation Tax rate in Northern Ireland and to demonstrate that its finances were on a sustainable footing, and that the Executive’s block grant would need to be adjusted to reflect the Corporation Tax revenues foregone if the devolved power were exercised.
The Government is committed to closing the tax gap and cracking down on avoidance and evasion.
The Government is determined to do more to close in on promoters of marketed tax avoidance and recently consulted on a package of measures to strengthen HMRC’s powers to tackle them.
HMRC also carries out civil and criminal investigations into suspected tax evasion, including where there is suspicion of third parties being involved in fraud or evasions. All investigations are assessed to determine which action would be most appropriate.
It is a fundamental principle of the tax system that taxpayers are responsible for their own tax affairs. However, HMRC does levy penalties on promoters of tax avoidance and uses the Joint and Several Liability legislation to seek to recover penalty liabilities from appropriate individuals: including directors; shadow directors; or participators when the company becomes insolvent.
The Government does not comment on live procurements to protect the integrity of the process. In all its procurements, HMRC follows government procurement rules.
The Prudential Regulation Authority (PRA), which is part of the Bank of England, is responsible for setting banks’ and building societies’ remuneration rules, alongside the Financial Conduct Authority (FCA).
The PRA’s new requirements introduce greater flexibility around senior banker pay and strengthen the link between bonus awards and responsible risk-taking. In response to industry feedback, the final rules go further than the original proposals announced last year and apply retroactively to any awards not yet fully paid. The new requirements came into force on 16 October 2025.
The PRA assessed the impact of its updated remuneration rules against its statutory objectives, set by Parliament: a primary objective of promoting the safety and soundness of firms to avoid adverse effects on financial stability and secondary objectives of ensuring effective competition, and enhancing the growth and global competitiveness of the UK economy.
The PRA concluded that the new framework aligns with these objectives. The government supports the PRA’s assessment and decision which reflects our commitment to reinforcing the UK’s position as a competitive global financial sector, while maintaining the resilience and integrity of the financial system.
The Government does not comment on live procurements to protect the integrity of the process. In all its procurements, HMRC follows government procurement rules.
Stakeholders were invited to apply for new business suspensions between 8 May and 3 July 2024. As part of this process a suspension was applied to CN76061211 – cold-rolled aluminium alloys coils.
The suspension will be in place until 30 June 2027, with a review on possible extension occurring before this date.
There will be further opportunities to apply for tariff suspensions in due course. Further information, including dates of the application window, guidance, and methods to apply, will be announced on GOV.UK.
The Financial Services Growth and Competitiveness Strategy set out a comprehensive ten-year plan to deliver growth and attract investment. Championing innovation is a key priority within this strategy, and the Government is working closely with industry stakeholders and regulators to remove barriers and unlock opportunities presented by new technologies.
Using distributed ledger technology to tokenise funds could support financial market efficiency by enabling more efficient, real-time data sharing which could lower operational costs and enhance resilience.
The Government has published its Wholesale Financial Markets Digital Strategy, which sets out the key steps the UK has to take to digitalise its financial markets, including through the tokenisation of assets. The Government is taking forward various measures in this space, in particular the Digital Securities Sandbox. The DSS provides a bespoke regulatory framework that enables firms to test, scale and roll out the tokenisation of securities. The Financial Conduct Authority (FCA) also recently launched a consultation for a new Direct2Fund model, allowing investors to engage directly with investment funds through blockchain technology.
To manage financial crime risks, fund managers and UK cryptoasset firms continue to be subject to the Money Laundering and Terrorist Financing Regulations, requiring strict supervision, customer checks and suspicious activity reporting.
The personal tax system applies on an individual basis and has done since the introduction of the independent basis of taxation in 1990. The government remains committed to the principle of independent taxation.
However, there is more the government can do to improve how it uses the data it collects to better target financial support to those who need it, including to households.
At the Budget in October 2024, the government confirmed it will explore how better data use and sharing across government departments can improve the targeting of economic support to households, especially in times of crisis. HM Revenue and Customs is working with the Department for Science, Innovation and Technology to take this forward.
This Government remains committed to supporting the UK steel industry.
The Government will also set out a long-term vision for a revitalised and sustainable sector in a Steel Strategy to be published by the end of the year.
This Government remains committed to supporting the UK steel industry.
The Government will also set out a long-term vision for a revitalised and sustainable sector in a Steel Strategy to be published by the end of the year.
The Crown Estate pays its entire net profits into the Consolidated Fund each year, contributing to the funding of public services across the UK, including in Wales.
The Crown Estate is taking steps to ensure that Wales benefits from offshore wind development. It has launched a £50 million Supply Chain Accelerator, with four Welsh-based projects successful in the first funding round, to support early-stage supply-chain proposals. Alongside the Supply Chain Investment Programme, this aims to unlock capacity constraints, accelerate project delivery and create local economic opportunities, including jobs and skills development in Wales.
The Crown Estate’s Round 5 Agreements for Lease also include contractually enforceable social value and economic commitments. These obligations are designed to translate leasing agreements into tangible outcomes for communities .
The Crown Estate pays its entire net profits into the Consolidated Fund each year, contributing to the funding of public services across the UK, including in Wales.
The Crown Estate is taking steps to ensure that Wales benefits from offshore wind development. It has launched a £50 million Supply Chain Accelerator, with four Welsh-based projects successful in the first funding round, to support early-stage supply-chain proposals. Alongside the Supply Chain Investment Programme, this aims to unlock capacity constraints, accelerate project delivery and create local economic opportunities, including jobs and skills development in Wales.
The Crown Estate’s Round 5 Agreements for Lease also include contractually enforceable social value and economic commitments. These obligations are designed to translate leasing agreements into tangible outcomes for communities .
The previous government held three public consultations between 2016 and 2018 on reforms to late filing and late payment penalties.
Following this, penalty reform was introduced for VAT customers in 2023 as part of Making Tax Digital. The same approach will be extended to Income Tax Self Assessment customers as follows:
The government will confirm in due course when the remaining Income Tax Self Assessment customers will move to the new penalty approach.
HMRC does not hold specific data showing the number of hairdressers and nail salons investigated for tax non-compliance.
HMRC’s approach to tax compliance includes a range of activities that aim to both detect and tackle current non-compliance and change future behaviours. HMRC aims to help and support customers to understand their tax obligations and provides clear guidance to make it easy for them to get things right.
HMRC is aware that some workers and businesses in the hairdressing and beauty sector find it hard to understand their tax obligations. To help support these customers, HMRC has worked with trade bodies for this sector to develop new educational material including a YouTube video and has published guidance on GOV.UK to better explain the employment status and tax implications of different business models. Details can be found at: https://youtu.be/5o3au6PyXG8 and https://www.gov.uk/guidance/check-employment-status-if-you-work-in-hair-and-beauty
Closing the Tax Gap is one of HMRC’s three priorities. The government is committed to measures which will raise over £7.5 billion additional tax revenue per year by 2029 to 2030. This includes the package to close the tax gap at Autumn Budget 2024 (£6.5 billion) and further messages at Spring Statement 2025 (over £1 billion).
As part of these packages, HMRC will receive extra funding over the next five years to recruit an additional 5,500 compliance staff and to fund 2,400 debt management staff.
HMRC has led multiple operations in the hair and beauty sector, specifically barbers and nail bars. For example, during March 2025, HMRC undertook a series of unannounced visits (including Turkish style barbers) across the West Midlands as part of a three-week operation conducted jointly with the NCA and other agencies. This exercise resulted in Police seizures under Proceeds of Crime provisions of more than £500k in cash and illegal funds.
The Government launched a consultation on proposals to simplify the current gambling tax system, which closed on 21 July 2025. Responses are now being analysed and a response to the consultation will be published at Autumn Budget 2025.
As part of the consultation process, the Government engaged with a wide range of stakeholders including, the British Horseracing Authority, the Jockey Club and Betting & Gaming Council as well as gambling businesses and charities.
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services; this includes most construction works. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
To stimulate the construction of new homes, the Government currently maintains a zero rate of VAT on new-build residential buildings. Additionally, residential renovations are subject to a reduced rate of VAT of five per cent if they meet certain conditions. These include conversions of buildings from one residential use to another, conversions from commercial to residential use, and the renovation of properties that have been empty for two or more years. These reliefs apply to all residential buildings, including sub-market housing.
To support the delivery of 1.5 million new homes over the course of this parliament, the Government has confirmed a new 10-year £39 billion Social and Affordable Homes Programme to kickstart social and affordable housebuilding at scale across the country. This is the biggest long-term investment in social and affordable housing in recent memory.
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.
The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.
I refer the Honourable Member to the answer given to UIN 84115.
A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
A new duty structure for alcoholic products was introduced in August 2023. This included a new Draught Relief which is a reduced rate of Alcohol Duty applied to qualifying alcoholic products sold in the on-trade (e.g. pubs, bars) under 8.5% ABV.
The government estimated the cost of Draught Relief as £145m for 24-25 and published it here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
At Autumn Budget 2024, the Chancellor also announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including Draught Relief, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
A new duty structure for alcoholic products was introduced in August 2023. This included a new Draught Relief which is a reduced rate of Alcohol Duty applied to qualifying alcoholic products sold in the on-trade (e.g. pubs, bars) under 8.5% ABV.
The government estimated the cost of Draught Relief as £145m for 24-25 and published it here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
At Autumn Budget 2024, the Chancellor also announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including Draught Relief, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Government continues to take the issue of VAT treatment of private hire vehicle services seriously and recognises the importance of clarity to the sector. The Government will therefore publish a response to the consultation on the VAT treatment of private hire vehicles soon.
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.
Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, the Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The Government published a tax information and impact note on 21 July 2025 and this is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.
The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.
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.
The Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The Government published a tax information and impact note on 21 July 2025 and this is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.
The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.
Liquid biofuels and renewable fuels are taxed at the same rate as their petrol and diesel equivalents. The main rate is 52.95 pence per litre. The government keeps the tax system under review, with changes announced at fiscal events.
Currently electric vehicle salary sacrifice schemes are not available for central Civil Service departments. HM Treasury approval would be required for any such scheme to be implemented. HM Treasury keeps all policies under review and will consider carefully any requests which are made for scheme expansion.
HMRC services are designed with resilience and continuity in mind. While some services rely on internet connectivity—for example, digital access for citizens and connections to certain Software-as-a-Service (SaaS) platforms—the majority of HMRC’s core systems will continue to operate during an internet outage.
Internal connectivity between HMRC sites and hosted services is maintained through private, dedicated links that do not depend on the public internet. This ensures that critical processing and internal operations can continue without interruption.
For citizen-facing services that require internet access, HMRC has established Business Continuity plans. These include alternative communication channels, prioritisation of essential services, and manual fallback processes where appropriate, to minimise disruption and maintain service availability.
The Government recently consulted on proposals to reform Landfill Tax to ensure the regime remains effective in encouraging waste to be diverted away from landfill. The proposals aimed to support the Government’s circular economy objectives to facilitate economic growth by stimulating investment in technologies, sectors and infrastructure that keep resources in circulation for longer. As part of the consultation, the Government has received a wide range of views from stakeholders, including representatives from manufacturing sectors, such as steelmaking. The consultation closed on 28 July, and the Government is considering responses and will set out next steps in due course.
When Vehicle Excise Duty (VED) is paid monthly or six-monthly, rather than annually, the cost to the exchequer is higher because of lost interest. To reflect this impact on the public finances, the previous government introduced in 2014 an extra charge for monthly and six-monthly VED payments to make up for the lost interest
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 government’s Industrial Strategy published in June 2025 announced that from 2027, a new British Industrial Competitiveness Scheme will reduce electricity costs by c.£35-40/MWh and support thousands of businesses. The scheme will benefit manufacturing electricity intensive frontier industries in the Industrial Strategy and foundational manufacturing industries in their supply chains. Eligible businesses will be exempt from paying the costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market. The scheme will bring GB electricity costs more in line with other major economies in Europe, and level the playing field for GB businesses.
The government will also continue support for the Energy-Intensive Industries Compensation Scheme to support energy efficiency, decarbonisation, and technical innovation.
The government keeps all taxes under review and will continue to review Carbon Price Support beyond the announced rates as part of the policy making process.
I refer the Hon. Member the answer that I gave to PQ UIN 82442 on 21 October 2025.
The Government is committed to supporting British businesses and ensuring they have the best chance to win public contracts.
The new Procurement Act creates a simpler and more transparent system that will support British businesses bidding for work.
The Act also allows contracting authorities to set standards that recognise the quality and standard of UK businesses and products.
Alongside this, the National Procurement Policy Statement encourages contracting authorities to consider this government’s Industrial strategy and the sectors vital to our economic growth.
HM Treasury does not hold the information requested. The provision of catering facilities, including tableware and crockery in catering outlets for HM Treasury staff and buildings, is managed under contracts administered by the Government Property Agency.
The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
As set out at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with ratable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure they benefit from much-needed certainty and support. The Government is sustainably funding this by introducing a higher tax rate on properties with RVs of £500,000 and above.
The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes and broader economic and fiscal context into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
The Government will support those seeing the biggest increases at the revaluation. The Government will announce details at Budget 2025, in light of the revaluation outcomes.
The Government is committed to helping deliver global climate finance, including the New Collective Quantified Goal agreed at COP29 of at least $300bn per year to developing countries by 2035, and responding to the wider call on all actors to increase climate finance to developing countries to £1.3trn per year.
As part of that effort, we are pressing for faster and more ambitious reforms to the global financial system to deliver much more and higher quality climate and development finance. Alongside this, we are supportive of exploring revenue raising mechanisms for climate action.
We recognise the work being undertaken by the Global Solidarity Levies Taskforce and will consider their proposals and those of other organisations on a case-by-case basis.
The OBR will produce a new forecast for the annual Budget, and the Chancellor will make decisions in the round based on that forecast.
The Government is focused on unleashing the potential of people across all nations and regions of the UK and growing the economy – a key priority in the Plan for Change.
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.
The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances. With all policies considered, the OBR's March 2025 EFO forecasts the employment level to increase from 33.6 million in 2024 to 34.8 million in 2029.
The Government is committed to supporting young people to earn and learn. That is why we have recently announced that we will offer a guaranteed job to young people on Universal Credit, who are unemployed for over 18 months. This will provide an opportunity for young people to gain essential skills and experience and prevent the damaging effects of long-term unemployment. This initiative forms a key part of the Government’s Youth Guarantee and will build upon existing employment support and sector-based work academies (SWAPs) currently being delivered by the Department for Work and Pensions (DWP). Further details will be announced at the Budget 2025.
The Government closely monitors the health of different sectors across the UK economy and regularly engages with the hospitality sector.
The Government protected the smallest hospitality businesses from the recent changes to employer National Insurance through increasing the Employment Allowance to £10,500.
We have also taken a number of other steps to support the hospitality industry. This includes: