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.
The National Wealth Fund (NWF) is capitalised with £27.8bn to make investments in support of the growth and clean energy missions. £10 billion of its capital is allocated for guarantees, £4 billion for local authority lending, and the rest is split between debt and equity.
HM Treasury has not made specific allocations of this capital to each financial year. The NWF has the target of committing all its capital by 2029/30.
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.7 billion in 2025-26 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
Due to the international nature of air travel, the UK Government, alongside over 100 other countries, has entered into wide-ranging bilateral agreements to enable more seamless air connectivity between countries. These are longstanding agreements that include restrictions on taxing jet fuel on international flights. Air Passenger Duty is therefore the principal tax on the aviation sector, charged on a per passenger basis, to ensure that airlines continue to make a fair contribution to the public finances.
Reforms to APD took effect in April 2023, including the introduction of a new ultra long-haul band covering flights that are greater than 5,500 miles from London. This ensures that those who fly furthest, and have the greatest impact on emissions, pay the most tax.
HMRC does not hold data on the value of goods identified as a threat to the EU economy.
The UK Internal Market Scheme enables businesses to move goods from Great Britain to Northern Ireland without being subject to customs duties and unnecessary checks and paperwork. Over 15,000 businesses have been authorised for UKIMS.
The Independent Monitoring Panel's recent assessment of the UK Internal Market System showed that 96% of the value of goods moving via freight from Great Britain to Northern Ireland did so under the UK internal market system for the period 1 January 2025 – 30 June 2025.
The Government published its summary of the impacts of the increases to the Economic Crime (Anti-Money Laundering) Levy in the policy paper titled "Economic Crime Levy – changes to bands and charges” (Economic Crime Levy — changes to bands and charges - GOV.UK).
The Levy was designed with simplicity and proportionality at its core, to limit the administrative burden on regulated entities. Accordingly, it applies to any entity that carries out activity regulated by the Money Laundering Regulations and no entity pays more than 0.1% of its revenue in charges.
A full review of the Levy will be undertaken in 2027.
Revenue from Financial Conduct Authority (FCA) fines is used to benefit the taxpaying public. First, the FCA deducts the costs of enforcement from its fine income. Any money left over is passed to the Treasury in accordance with the Financial Services and Markets Act 2000. The Treasury must surrender it to the Consolidated Fund and it is then part of the Government’s total revenues, used to pay for all Government spending on public services like hospitals, hospices, and other crucial services. The Government has no plans to change this approach.
This Government is committed to helping first time buyers own their own home and will do this by building 1.5 million more homes.
The Government keeps savings policy under review, any changes of this kind would be made at a relevant fiscal event.
More properties will benefit from the new retail, hospitality and leisure (RHL) multipliers because there is no cash cap, meaning all qualifying properties in an RHL chain will benefit.
Last July the government published the Wholesale Financial Markets Digital Strategy. The strategy announced that the government will appoint an industry expert as Wholesale Digital Markets Champion, who will provide leadership from, and for, the sector on wholesale market digitalisation.
The government is working at pace to appoint a suitable candidate for the role, taking into account their backgrounds and previous experience, and will provide an update in due course.
Last July the government published the Wholesale Financial Markets Digital Strategy. The strategy announced that the government will appoint an industry expert as Wholesale Digital Markets Champion, who will provide leadership from, and for, the sector on wholesale market digitalisation.
The government is working at pace to appoint a suitable candidate for the role, taking into account their backgrounds and previous experience, and will provide an update in due course.
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.
The treatment of customers by UK banks and building societies is governed by the Financial Conduct Authority (FCA), whose independent regulatory powers ensure consumer protection in the financial services sector. The FCA’s Principles for Businesses require firms to provide prompt, efficient, and fair service to all their customers. The FCA’s Consumer Duty requires firms to act in good faith, prevent foreseeable harm, and act in the best interests of consumers.
UK banks are required to comply with relevant laws and regulations that are fundamental to consumer protection. In April 2024, the FCA published an update on its regulatory approach to AI, making it clear that where firms use AI as part of their business operations, they remain responsible for meeting FCA rules. Firms remain fully accountable for outcomes delivered by AI systems.
The FCA is also the regulator responsible for promoting effective competition in the interests of consumers in financial services. The FCA’s 2024 update on its regulatory approach to AI also considers competition risks and the impacts of beneficial innovation on competition in financial services. The FCA also works alongside the Competition and Markets Authority (CMA) as part of the Digital Regulation Cooperation Forum (DRCF), including conducting joint consumer research on generative AI with the CMA.
The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and monitoring risks to UK financial stability. In their April 2025 Financial Stability in Focus publication, they set out the potential benefits and risks to financial stability that could result from AI use in the financial system, HM Treasury continues to work closely with the FPC and UK financial regulators to assess risks to financial stability.
The Government will continue to work with regulators and industry to ensure innovation proceeds safely and responsibly.
In 2025, the sector attracted $3.6 billion of investment - second only to the US. As set out in the Government’s Financial Services Growth and Competitiveness Strategy (“the Strategy”), the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start-up, scale and list.
The UK has a long history as a powerhouse of financial services innovation. The Strategy set out a comprehensive package of reforms to maintain the UK’s global leadership in Fintech.
As set out in the Government’s Financial Services Growth and Competitiveness Strategy, it is our ambition to make the UK ”the world’s most technologically advanced global financial sector”, leveraging our dual strengths in financial services and Artificial Intelligence (AI) to drive growth, productivity, and deliver consumer benefits, including steps to support safe AI deployment across the sector.
As committed to in the Strategy, the Government has appointed Financial Services AI Champions, Harriet Rees and Rohit Dhawan, who will focus on helping firms seize opportunities of AI while protecting consumers and financial stability.
As part of their work, the AI Champions will engage with stakeholders across the industry, with the regulators and with government to develop recommendations on areas of potential growth for AI in financial services and what action could be taken to seize the opportunities that AI brings.
The Government will carefully consider any recommendations before setting out its next steps, taking into account the benefits of innovation and also ensuring that risks are appropriately considered.
The Government will continue working closely with industry and the regulators to safely capitalise on the opportunities AI presents while protecting consumers and financial stability.
Strengthening the financial sector’s resilience to threats and hazards of all origins is a key priority for HM Treasury and the financial regulators.
While individual subsea cables are vulnerable to damage, the UK’s international connectivity is resilient, supported by 45 international cables and high‑capacity fibre cables through the Channel tunnel.
However, critical sectors must be prepared for reasonable worst-case disruption. HM Treasury is working closely with the Department for Science, Innovation and Technology to update the Government’s assessment of how disruption or monitoring of subsea cables could affect financial services. This work will inform response planning and further support a secure, resilient financial sector.
We are committed to helping pensioners with the cost of living and ensuring financial security in retirement. The State Pension will remain the foundation of retirement income and, in line with the government’s commitment to the Triple Lock for the duration of this parliament, over 12 million pensioners will benefit from a 4.8% increase to their basic or new State Pension in April 2026, worth up to £575 a year. This follows a substantial increase in 2025/26, when those on the full new State Pension received a £360 boost.
The Government provides Pension Credit for pensioners with low incomes. Pension Credit is an income-related benefit which targets help at the poorest pensioners. The amount a person gets depends on how much income they have each week and how much they have saved or invested.
The Pension Credit Standard Minimum Guarantee will also increase by 4.8% in April 2026, from £227.10 to £238 a week for single pensioners and from £346.60 to £363.25 for couples, protecting the poorest pensioners. Over three quarters of pensioners will benefit from the Winter Fuel Payment for the duration of this Parliament, targeting help at those on lower and middle incomes while ensuring fairness for taxpayers.
Pensioners also benefit from free eye tests, NHS prescriptions and bus passes, and some may qualify for means tested benefits such as Housing Benefit and Cold Weather Payments.
To help with ongoing cost of living pressures, the government will remove around £150 on average off household energy bills across Great Britain from April 2026 and the government is expanding the Warm Home Discount to an additional 2.7 million households, meaning around 6 million low-income households will receive £150 support with their energy bills.
At Autumn Budget 2025, the Government published the Entrepreneurship in the UK Prospectus which emphasises the Government’s commitment to supporting start‑ups and scaling firms through improved access to capital, R&D support, regulatory reform, and procurement changes.
The Government also conducted a Call for Evidence on Tax Support for Entrepreneurs, which closed recently.
The project to implement the Double Contributions Convention, including work required by Article 20 to scope and implement a system of electronic information exchange between the UK and India, is still on-going. A full estimate is therefore not available. The system under development will be a step towards the modernisation of international social security processes in HMRC.
The Office for Budget Responsibility will certify the impact of the Double Contributions Convention in the usual way at a fiscal event, once it has been ratified.
From April, every pub and live music venue will get 15% off its new business rates bill on top of the support announced at Budget, ahead of their bills being frozen in real terms for a further two years. The cost of this support will not impact other sectors’ bills.
Final costings will be confirmed at a fiscal event in the usual way.
If customers disagree with their Rateable Value (as published in the Rating Lists), there is a three-stage process run by the Valuation Office Agency (VOA) known as Check, Challenge, Appeal to challenge this.
Ratepayers are required to continue paying business rates based on the current valuation while a case is ongoing.
DWP has long provided HMRC with information where older children receive benefits in their own right. Since 2024, this has been done through notifications of Universal Credit claims, replacing the previous approach which relied on Jobseeker’s Allowance and Income Support data.
HMRC uses these notifications to stop Child Benefit awards in cases where a young person is receiving benefit in their own right. This prevents dual provision of government support for the same individual. Because the DWP data is notifying HMRC of clear evidence of a benefit award, rather than indicating a risk of this potential, it is approaching 100% effective for addressing this type of error and fraud.
Based on operational management information, which is subject to change, over the last two years HMRC has closed around 3,000 Child Benefit awards following notifications from DWP that the young person was in receipt of Universal Credit.
The Government has no current plans to freeze business rates for recording studios.
At the Budget in November 2025, the Government announced a £4.3 billion support package to support ratepayers across all sectors seeing bill increases. This includes a redesigned Transitional Relief scheme, which protects ratepayers from large overnight increases as a result of the revaluation.
The Government values the music industry and understands that recording studios are a vital part of the infrastructure of the industry. The Music Growth Package will see Government funding for the sector more than double from £4.1 million to up to £10 million a year for the next three years.
Remuneration arrangements involving the sacrifice of earnings for employer pension contributions are not possible within statutory Public Service Pension Schemes and those public sector employers to which the Managing Public Money guidance applies are not permitted to offer such remuneration schemes. For other public sector organisations, the Government does not hold a central record of which organisations offer this type of salary sacrifice arrangement.
As stated in answer to WPQ 109606 on 3 February, the government will set out in due course further details on how it will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments.
The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.
Because of the decisions the Government has taken, around 30 percent of people within scope of the review could have their liabilities removed entirely. Most other individuals will see their liabilities reduced by at least half.
The most serious cases within scope of the Loan Charge review include instances where an individual has avoided more than £5 million of tax through disguised remuneration use. The Government does not believe it is right to offer this group further substantial reductions to their liabilities. The £70,000 cap was introduced to ensure fairness for all taxpayers, including the vast majority who have never used disguised remuneration schemes.
Over 80% of individuals that are within scope of the settlement opportunity will not be affected by the cap.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Outside of a limited number of VAT reliefs aimed at stimulating the supply of new homes, the standard VAT rate of 20 per cent applies to most construction work.
Some museums and galleries receive VAT refunds on the costs associated with providing free access to their permanent collections, under the museums and galleries VAT Refund Scheme. This includes the refunds of the VAT paid on repairs to the buildings that contain museums/galleries’ permanent collections. Further information about the refund scheme can be found here:
VAT Refund Scheme for museums and galleries (VAT Notice 998) - GOV.UK
The Listed Places of Worship Grant Scheme, administered by the Department for Digital, Culture, Media and Sport, provides grants for VAT paid by listed places of worship on their repair and maintenance costs, with the objective of helping to preserve UK heritage. From April 2026, the scheme will be replaced by a Places of Worship Renewal Fund, which will invest £92 million capital funding into listed places of worship. It is designed to ensure that taxpayer funding is targeted more effectively toward the preservation of our heritage assets.
Childminders make a significant contribution to children’s development, learning, and wellbeing. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.
Only a small proportion of childminders with qualifying income over £50,000 will be mandated into Making Tax Digital (MTD) for income tax from April 2026. Childminders moving to MTD for income tax can continue to claim tax relief for household costs, wear and tear of household items and furniture, and food and drink, by deducting actual business costs. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.
The Government will monitor the impact of MTD for income tax on childminders and other home-based childcare providers in the same way as it will for all sole traders moving to MTD for income tax.
The Epstein scandal exposed a culture that didn't value the lives of women. It is utterly contrary to what the Prime Minister stands for and the values at the heart of a government tackling misogyny in schools, halving violence against women and girls and overhauling how our criminal justice system serves victims.
The Crown Estate is an independent commercial organisation, and the Government is not involved in its operations and day-to-day decision making.
The Crown Estate has confirmed that its leases contain a nuisance clause that prohibits illegal or immoral use, and that it enforces those leases in accordance with applicable law.
The Crown Estate has confirmed that its residential lease arrangements do not require monitoring or recording the identities of a leaseholder’s private visitors. Such monitoring would be incompatible with privacy and data protection requirements and with the long-established covenant owed to leaseholders under landlord-tenant law.
The Epstein scandal exposed a culture that didn't value the lives of women. It is utterly contrary to what the Prime Minister stands for and the values at the heart of a government tackling misogyny in schools, halving violence against women and girls and overhauling how our criminal justice system serves victims.
The Crown Estate is an independent commercial organisation, and the Government is not involved in its operations and day-to-day decision making.
The Crown Estate has confirmed that its leases contain a nuisance clause that prohibits illegal or immoral use, and that it enforces those leases in accordance with applicable law.
The Crown Estate has confirmed that its residential lease arrangements do not require monitoring or recording the identities of a leaseholder’s private visitors. Such monitoring would be incompatible with privacy and data protection requirements and with the long-established covenant owed to leaseholders under landlord-tenant law.
Visitor information for HM Treasury offices in Whitehall is not retained for the time periods specified.
VAT registered schools, like all VAT registered businesses, are entitled to recover VAT incurred on the goods and services they purchase and use in making taxable supplies. Costs relating to non-business activities cannot be recovered as input tax. There is no special provision to allow recovery of VAT incurred for non-business activities.
Where Combined Cadet Forces related costs also support the broader educational provision, schools may be able to deduct a portion of the VAT incurred on the associated costs.
HMRC has published guidance specifically for private schools, including how they can recover VAT on costs.
UK association to Erasmus+ is provided for through technical amendments to Protocol I of the Trade and Cooperation Agreement (TCA), which was agreed in 2020 and provides for UK association to EU Programmes under Part 5.
Section 3 of Part 5 of the TCA outlines the legal mechanism under which the UK’s participation in all EU Programmes, including Erasmus+, would be subject to suspension and/or termination.
This funding relates to money that has already been spent by local authorities. The effect of the decision referred to is to transfer the accounting for that historic spending from local to central government. Any impact will be reflected in the OBR’s upcoming forecast.
I refer the Hon Member to the response provided to 110941 on 10 February 2026.
Any Barnett consequentials generated will be confirmed when departments formally receive funding; the next opportunity is Spring Forecast 2026.
Yes, the Double Contributions Convention with the Republic of India is subject to the scrutiny requirements of the Constitutional Reform and Governance Act 2010.
The Government laid the Convention before Parliament on 11 February 2026, and the scrutiny period commenced on 12 February 2026.
The security of HMRC’s online services is a top priority. We are aware of attempts by organised criminals to access VAT accounts using genuine customers’ registration details, and our immediate focus is to protect customer data and correct any affected tax or payment records. Customer accounts may be restricted, i.e. suspended or deleted, for a range of reasons, including proactive fraud monitoring, reports of suspicious activity, and the closure of inactive accounts. Specialist security and VAT teams are actively investigating and delivering improvements to strengthen VAT account security, which could include restricting accounts where fraudulent activity has not been identified.
When and if fraudulent activity has occurred, HMRC contacts affected customers to explain the remedial actions taken and outline any steps they need to take.
The Barnett formula applies to all changes in UK Government Departmental Expenditure Limits, as set out in the Statement of Funding Policy. The Block Grant Transparency publication breaks down all changes to the Northern Ireland Executive’s block grant funding since Spending Review 2015. The most recent report was published in October 2025.
At spending reviews, the Barnett formula is applied to overall changes to department funding, rather than to individual programmes or specific funding streams. Therefore, it is not possible to identify or specify Barnett consequentials allocated to the Northern Ireland Executive for particular programmes where funding was provided at spending reviews, including increases in police funding to Police and Crime Commisioners in England and Wales.
The correspondence from the hon. Member is receiving attention, and a response will be issued in due course.
The Financial Conduct Authority (FCA) applies a number of regulatory regimes to distinguish between retail investors and those that are more sophisticated, and to apply appropriate protections. These include the financial promotion regime and client categorisation rules.
The financial promotion regime provides a framework which seeks to ensure that consumers are appropriately protected such that they are able to make informed decisions. The regime, which is governed by the Financial Promotion Order, includes exemptions for marketing to investment professionals, and high-net-worth or sophisticated investors.
In addition, client categorisation rules seek to protect retail clients investing in capital markets, without imposing undue restrictions on professional clients. The FCA are currently reviewing these rules to unlock greater opportunities for wealthy investors, strengthen capital markets and drive economic growth. A consultation on the FCA’s proposals closed on 2 February 2026.
The information required to inform an estimate is not held in a readily available form. Producing an estimate would require detailed manual examination of a very large number of individual Child Benefit claims, which could only be done at disproportionate cost.
Across HMRC’s main helplines, the average speed of answering customer calls for 2023–24, 2024–25, and 2025–26 (year-to-date to November 2025) is shown in the table.
The definition of ‘average speed of answering a customer’s call’ (ASA) is the average time spent waiting in the queue for an adviser. This is from the time that the customer finished listening to HMRC’s automated messages and completed their selection from HMRC’s automated menu to the time when they get to speak to an adviser.
HMRC’s main helplines - Average Speed of Answering a customer’s call (minutes: seconds)
| 2023-24 | 2024-25 | 2025-26 YTD to November |
Child Benefit | 21:05 | 16:05 | 10:35 |
National Insurance | 20:55 | 21:48 | 10:32 |
Tax Credits Helpline | 19:22 | 22:09 | 05:16 |
Tax Credits Payment Helpline | 22:13 | 16:50 | 05:34 |
Corporation Tax | 13:52 | 11:51 | 11:49 |
Stamp Duty and Capital Gains | 05:45 | 02:47 | 03:26 |
Agent Dedicated Line | 21:56 | 26:38 | 16:37 |
Construction Industry Scheme Helpline | 13:49 | 09:23 | 09:44 |
Employers Helpline | 22:20 | 26:32 | 27:20 |
Online Services Helpline | 08:36 | 11:49 | 05:58 |
PAYE | 34:18 | 22:58 | 17:34 |
Self Assessment Helpline | 37:15 | 23:40 | 16:46 |
VAT | 27:14 | 14:30 | 10:32 |
Overall, ASA has improved over the past two years. In 2023-24, across all HMRC helplines, it was 23 minutes and 14 seconds. In 2025-26 (year to date - end of November 2025), ASA was 13 minutes and 17 seconds.
HMRC are taking steps to make sure more of their services are digital, so customers can self-serve online. HMRC online services and the HMRC app are convenient to access and receive high customer satisfaction ratings. As more people use HMRC online services, advisers are freed up to support those with more complex queries and those who are digitally excluded.
Following the departure of previous occupants, the official Ministerial residence was provided unfurnished. To address this, £19,759.61 was spent since 4 July 2024 on furnishings which remain government property and will be retained for future occupants.
The Government does not comment on specific movements in financial markets.
The Government, together with the Financial Conduct Authority, has already undertaken significant reforms to ensure UK capital markets deliver for British businesses and investors. This includes an ongoing programme to implement reforms to wholesale markets. These have been designed to maintain high regulatory standards, promote openness and competitiveness, deliver fair and proportionate regulation, and support economic growth, innovation and wealth creation across society.
Challenging times for global and European security call for creative solutions. The UK is therefore stepping up work with likeminded allies on the most effective option for a collective approach to defence spending and procurement.
Together, we can accelerate vital investment and maximise the potential of historic spending uplifts to meet the scale of our shared defence and security commitments.
Student loan repayments are taken into account as part of affordability assessments for mortgage applications, but student loans are very different from a mortgage or credit card debt as repayments are determined by income, not the amount borrowed. For example, a Plan 2 graduate earning £30,000 will repay only around £4 a month in FY2026–27.
The most sustainable long-term method to improve housing affordability and help people into homeownership is to increase the supply of housing. This Government has recommitted to delivering 1.5 million homes over this Parliament.
The government is committed to making home ownership more accessible by supporting first-time buyers, and welcomes clarifications from the Financial Conduct Authority (FCA), which should allow customers to borrow around 10% more on the same income.
The fiscal situation this government inherited means we’ve had to make tough but fair choices, including on student loan repayment threshold freezes.
Student loan borrowers repay a portion of their income (typically 9%) above the repayment threshold. A Plan 2 graduate earning £30,000 will repay only around £4 a month in FY2026–27. The student finance system is heavily subsidised by government, and lower-earning graduates will always be protected, with any outstanding loan and interest cancelled at the end of the repayment term. It is right that those who are able to repay do so.
The Department for Education has published analysis of the impact of the repayment threshold freeze on total repayments here.
Lenders offering credit are regulated by the Financial Conduct Authority (FCA). This oversight ensures that lending practices are fair and that consumers are protected – firms regulated by the FCA must comply with its strict lending affordability rules, lending only to those who can afford repayments based on a thorough assessment of their financial situation. Under the FCA’s Consumer Duty, firms are required to take steps to identify and respond to signs of vulnerability, support customers to disclose their needs, and make them aware of available assistance.
The Government is committed to supporting people who are experiencing problem debt. Through the Money and Pensions Service (MaPS), the Government funds a range of national and community-based debt advice services in England, so households can access the specialist support they need to get their finances back on track.