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 Make provision to amend section 4 of the Social Security Contributions and Benefits Act 1992, and section 4 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, so that amounts of salary sacrificed for employer pensions contributions pursuant to optional remuneration arrangements are liable to national insurance contributions.
This Bill received Royal Assent on 29th April 2026 and was enacted into law.
A Bill to make provision in connection with finance.
This Bill received Royal Assent on 18th March 2026 and was enacted into law.
A Bill to Authorise the use of resources for the years ending with 31 March 2025, 31 March 2026 and 31 March 2027; 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 2025 and 31 March 2026.
This Bill received Royal Assent on 18th March 2026 and was enacted into law.
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 government does not comment on specific financial market movements. Gilt yields are determined by a wide range of international and domestic factors.
Headline inflation decreased from 3.3% in March to 2.8% in April, driven mainly by lower household energy bills and a fall in services inflation. Food and non-alcoholic beverage inflation fell from 3.7% in March to 3.0% in April.
The Government has already taken action to reduce the cost of living, including taking £150 off energy bills this year, freezing rail fares and NHS prescription charges, raising the National Living Wage, and extending the £3 bus cap.
The previous government announced the introduction of CBAM in 2023, in order to protect UK businesses producing carbon intensive goods domestically.
In recent years, UK-based fertiliser manufacturers have received sufficient free allowances to cover their emissions, and therefore have not in practice paid the carbon price.
This means that the CBAM rate, which will be set out later this year will be substantially lower than some external organisations are suggesting.
Low and stable inflation is vital for growth and investment. The independent Monetary Policy Committee (MPC) at the Bank of England are responsible monetary policy, and the MPC has the government’s full support as it acts to return inflation to target sustainably.
The most important thing the government can do to bring down inflation is to get borrowing down and stick to our fiscal rules. We have already reduced borrowing by nearly 1% of GDP in the last year and we are set to reduce borrowing faster than any other G7 country by 2030.
We have also supported the MPC by directly bearing down on prices. Action taken at the Budget will reduce inflation by 0.4ppt in 2026-27, through measures on energy bills, transport costs and fuel duty.
The government has made fair and necessary choices on tax so it can deliver on the public’s priorities. The UK’s current tax-to-GDP ratio remains in the middle of the pack within the G7.
Whilst the government does not publish forecasts of economic growth, the Office for Budget Responsibility (OBR) published their latest Economic and Fiscal Outlook (EFO) in March 2026, including forecasts for economic growth.
Forecasts are produced independently by the Office for Budget Responsibility (OBR), which incorporates market expectations for gilt yields alongside other determinants of debt interest, including inflation and the stock and composition of government debt.
The OBR’s most recent forecast, including for debt interest costs, are available in the March 2026 Economic and Fiscal Outlook linked here: https://obr.uk/efo/economic-and-fiscal-outlook-march-2026/
This is a matter for the Financial Ombudsman Service (FOS), which is an independent, non-governmental body.
The FOS will respond to the Noble Lord by letter, and a copy of the letter will be placed in the Library of the House of Lords.
The Ministerial residence was empty and so was furnished from within existing budgets and with value for money in mind. Items are permanently retained by Government. Items purchased came from InStyle Direct. Total expenditure from the Chancellor’s allowance on their official residence is disclosed in the Answer of 29 April 2026 to Question 118203.
Where employers reimburse allowable travel expenses, tax relief is available provided the expenses are wholly, exclusively and necessarily incurred for work purposes.
Ordinarily, employers must hold evidence of the employee’s actual expenditure. However, to reduce administrative burdens on employers, HMRC allows expenses for travel outside the UK to be reimbursed without evidence up to the levels contained within the overseas scale rates.
Where the overseas scale rates do not cover the expense incurred by employees, employers can still reimburse and provide tax relief provided they have appropriate evidence.
The Government keeps all taxes under review as part of the policy‑making process. Any decisions on future changes in this area will be taken in the context of the wider public finances.
The Government cannot direct the Financial Conduct Authority (FCA) regarding the content of its rules.
The Financial Ombudsman Service (FOS) plays an important role in providing quick and informal resolution of complaints between financial services providers and their customers, as an alternative to resolution through the courts. However, the Government recognises that there are some cases where it is appropriate for the FOS to dismiss complaints without consideration of the merits – for example, where it would be more suitable for the complaint to be dealt with by a court or another alternative dispute resolution body.
The FOS and the FCA recently consulted on changes to the rules setting out the grounds for dismissal of complaints, and are considering the responses received.
In relation to complex fraud cases, the consultation notes that these will often be the subject of a criminal investigation, where the relevant authorities have greater legal powers to carry out certain investigations and whose findings may have a direct bearing on any determination made by the FOS. If the FOS were to make a decision before such proceedings conclude, this could result in outcomes that are not fair and reasonable, or could potentially prejudice future legal proceedings.
The number of such disputes is fewer than five. HMRC are unable to disclosure the exact number as it could risk the identification of individual taxpayer(s).
Arbitration operates as a valuable mechanism under double taxation treaties, to ensure there is route to resolve double taxation where agreement cannot be reached between the relevant tax authorities, providing certainty and finality for taxpayers.
Often resolution can be reached outside of arbitration, which is why the number of arbitration cases are low. For context, for the latest year we have statistics, across 1 January 2023 to 31 December 2023, 348 cases were wholly dealt with under the procedure governing mutual agreement between tax authorities.
The Government has launched a call for input on suspending tariffs on a range of fertilisers, including urea. Businesses and other stakeholders have the opportunity to suggest additional fertiliser products are suspended as part of that call for input, which is due to end on the 24th June.
The government will continue to work with the private sector to unlock the significant increase in private investment required to deliver the full ambition of the 10 Year Infrastructure Strategy and to maximise the value of the extensive public investment underway.
The government has set out the Corporate Tax Roadmap, offering investors certainty and stability by maintaining the elements of the UK's corporate tax offer.
HM Treasury has not held discussions with the National Audit Office (NAO) on the use of the Special Administration Regime in the water sector.
Ministers, special advisers, and officials in HM Treasury have access to HMT-GPT, our internal AI tool which is built on Claude and ChatGPT, and Copilot, which have been assured to the appropriate security standards and approved for official use.
The use of publicly available or consumer versions of generative AI tools, including those named in the Question, for official business is not permitted. Approved enterprise tools are configured so that departmental data is held securely and is not used to train publicly available AI models.
I refer the Hon. Member to the answer I gave on 27 April 2026 to UIN 128634.
The salary of the DHSC Permanent Secretary was approved in line with the senior pay control process.
A response to the letter of 2 March 2026 from the hon. Member for North Herefordshire was issued on 3 June 2026.
The Government has extended Small Business Rates Relief to support small businesses to grow and expand, by giving them an additional two years of Small Business Rates Relief when they open a second premises. SMEs in rural areas may also be eligible for Rural Rates Relief if they meet certain conditions.
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are not in the VAT system at all. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Local Authorities are responsible for the administration of business rates, including billing, enforcement and decisions with regards the awarding of business rates reliefs, in line with legislation and guidance issued by the Government. Under the Business Rates Retention system, local authorities retain a share of rates collected locally to fund local services. The remaining share of rates is paid to central government as central share and is used by central government in its entirety to fund the local government sector.
The Government has taken a number of fair and necessary decisions on tax, welfare, and spending to fix the public finances and fund public services. One of these decisions, taken at Autumn Budget 2024, was to increase the rate of employer National Insurance contributions (NICs) whilst reducing the per-employee threshold at which employers start to pay NICs.
Businesses are able to claim employer NICs reliefs including those for under-21s and under-25 apprentices. This means employers pay no employer NICs for apprentices under 25 or employees under 21 on earnings up to £50,270. These reliefs are estimated to have been worth around £2.5 billion in 2025/26.
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.
Estimates of the impact on employment levels on certain sectors in Lancashire and the Fylde constituency, from changes to Employer NICs announced at Autumn Budget 2024, are not available.
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 Government has already taken action to help reduce the cost of living by announcing that it is suspending tariffs on food to bring down prices for consumers. An initial list was published on 20 May for implementation on 21 June. A call for input opened on 27 May and is due to close on 24 June, to get views from businesses and other stakeholders on a second package of tariff suspensions.
Consumer price inflation (CPI) for food and non-alcoholic beverages fell from 3.7% in March to 3% in April.
The High Value Council Tax Surcharge applies to less than 1% of properties across England. To support those who may struggle to pay, including pensioners on low disposable incomes, the Government proposes that those with household incomes below £35,000 or savings of less than £16,000 will be able to defer, alongside people who meet certain disability criteria. We welcome views on this as part of the High Value Council Tax Surcharge consultation High Value Council Tax Surcharge - GOV.UK
Fewer than 1% of all properties across England will be affected by the High Value Council Tax surcharge. The Valuation Office will undertake a targeted valuation exercise to identify properties within scope.
The Valuation Office will undertake a targeted valuation exercise to identify properties within scope of the High Value Council Tax Surcharge. Professional valuers will use the best available information, drawing on a range of data sources and applying industry‑standard valuation techniques to ensure that assessments are as accurate as possible.
The Government wishes to encourage pension saving, to help ensure that people have an incomethroughout retirement. This is why, for the majority of savers, pension contributions are tax-free. This makes pensions tax relief one of the most expensive reliefs in the personal tax system, costing £78.2 billion in 2023/24.
The Government recognises the importance of promoting confidence in pension saving and is committed to ensuring future generations of pensioners have security in retirement. This is why the government announced a landmark two-phased review of the pensions system days after coming into office. The first phase, the Pensions Investment Review, focused on reforming the pensions landscape to boost savers’ pension pots. These reforms have been enacted through the Pension Schemes Act 2026. The second phase – the independent Pensions Commission – is building on these foundations and will make recommendations to the government on the broader questions of adequacy, fairness, and sustainability to guide the long-term future of our pensions system.
The Chancellor and the Governor of the Bank of England meet regularly to discuss economic developments. There are also regular discussions between the Bank of England and the Treasury on the drivers of inflation at official level.
The Government has already legislated to abolish the Lifetime Allowance from 6 April 2024 and has brought forward a number of regulations to ensure the legislation operates as intended.
Most recently, the Pensions (Abolition of Lifetime Allowance Charge etc.) Regulations 2026 were laid before the House on Monday using the made affirmative procedure. These Regulations will be brought before the House for parliamentary scrutiny prior to coming into force at the end of this month.
The Government has used its regulation-making powers to address technical and consequential issues arising from the abolition of the Lifetime Allowance, ensuring the tax framework functions as intended. The existing power to make further consequential regulations expires at the end of this month.
The Office for Budget Responsibility (OBR) is the Government’s independent official forecaster and is responsible for producing economic and fiscal forecasts.
The OBR has included assessments of the economic impacts of leaving the EU in its forecasts since 2016. In March 2020 the OBR estimated that GDP will be 4% lower in the long run than it would have been had the UK not withdrawn from the EU. As of the Spring Forecast 2026, the OBR’s assumptions were unchanged from its previous assessment.
The OBR is required to produce a Forecast Evaluation Report (FER) each year under the Budget Responsibility and National Audit Act (2011). The OBR is required to explain the reasons for divergence between its forecasts and subsequent outturns, to support future forecast improvements. The OBR’s latest FER was published in June 2026 and can be found on its website.
At a time of great global uncertainty, we must deepen our relationships with allies whose values we share and whose interests are tied to our own. This is why we will pursue a closer relationship with the EU where it is in our national interest to do so.
The Government is committed to providing appropriate analysis of any agreement that ius made with the EU. The Government estimates that the Sanitary and Phytosanitary Agreement (SPS) and Emissions Trade Scheme Linking (ETS) will add up to £9 billion to the UK economy by 2040.
The 2025 UK-EU Common Understanding sets out that the SPS, ETS and electricity agreements will include appropriate financial contributions.
As of 31 March 2026, 204 active full-time staff are working compressed hours, 10.6% of all 1917 active full-time staff in the department. Those working compressed hours are undertaking their contractual hours.
The Government expects that the main provisions for the HVCTS will be included in a future Finance Bill.
An individual’s tax residence status is determined by the Statutory Residence Test. This is a year-on-year test, with each year being considered individually. The UK electoral roll has no bearing on UK tax residence and therefore HMRC has provided no guidance on this matter.
Payments intended to compensate individuals for personal injury would generally fall within established tax principles that treat compensation for personal injury as non-taxable. If payments are made which specifically represent loss of earnings, they will be subject to income tax under miscellaneous income rules.
For compensation paid under some schemes, specific tax treatment applies. Current and former armed forces personnel can claim compensation for any injury or illness which was caused by service. Family members may claim for compensation for personnel whose death was caused by service. Payments made under the Armed Forces Compensation Scheme are tax free. More information can be found at:
https://www.gov.uk/guidance/armed-forces-compensation-scheme-afcs
The Armed Forces Compensation Scheme applies from 6 April 2005. Claims for injuries, illnesses or death prior to that date are covered by the War Pensions Scheme, which also compensates using tax free payments.
Estimates on the number of small and medium-sized enterprises that are eligible for the Employment Allowance and will pay a higher level of National Insurance contributions relative to 2024-25 over the next three years are not available.
HMRC has a robust strategy to tackle the illicit tobacco trade and works closely with both Trading Standards, Border Force and law enforcement partners to enforce this.
The tobacco track and trace system is an important part of the government’s efforts to tackle illicit tobacco. Under the current legislation, direct access to tobacco track and trace data is restricted to HMRC and Trading Standards to ensure lawful control over its use.
While the Police do not have direct access to track and trace data, HMRC is committed to working closely with all enforcement partners, including the police, to explore appropriate opportunities for wider data sharing.
In practice HMRC has already shared specific traceability data with the Police to support investigations into organised crime and stolen products.
HMRC will continue to explore how track and trace data can be shared more effectively to support enforcement partners, including the Police.
The Government engages with representatives from the hospitality and tourism sectors on a range of issues including taxation.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s standard VAT rate of 20 per cent is close to the OECD average of 19.3 per cent.
The Government is aware that some European countries apply reduced VAT rates to hospitality, reflecting different tax systems, policy choices and wider fiscal contexts. Reduced rates of VAT come at a significant cost to the Exchequer, reduce the revenue available for vital public services, and must represent value for money for the taxpayer.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
The Government keeps all taxes and reliefs under review.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
The Government keeps all taxes and reliefs under review.
From 25 June to 1 September the Government is introducing a temporary reduced rate of VAT on children's menu meals and eligible family attractions.
This is a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres, concerts and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks, helping families enjoy a day out for less.
The decision was taken to focus the VAT relief on activities especially targeted at children and families, keeping the package targeted and affordable. Including events and festivals beyond those categories already included in the statutory instrument would risk extending the relief to unintended activities, with a knock-on impact on cost. Individual organisations and charities should consult HMRC’s guidance to determine how the rules apply in their circumstances.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services.
One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.
The Valuation Office Agency (VOA) is developing its resourcing and recruitment plans for the High Value Council Tax Surcharge (HVCTS) work.
At Budget 2024, the Government committed to a new independent review of the loan charge. The purpose of the review was to bring the matter to a close for people who have not settled and paid their Loan Charge liabilities.
The Government has accepted all but one of the Review’s recommendations, and in some areas has gone further. The Government has introduced legislation in the Finance Act to provide for a generous new settlement offer which it hopes maximises the opportunity for individuals to come forward and settle. I am committed to deliver the Government’s ambition to bring this matter to a close for as many customers as possible.
Whilst HMRC assesses the overall resources needed to carry out Loan Charge compliance activity, this is not based on detailed case-by-case forecasts. HMRC is required to collect tax due under the law. The progression and resolution of Loan Charge cases depend on a range of variable and often uncertain factors. These include the extent to which taxpayers choose to engage with HMRC to settle their enquiries.
In line with most tax policy changes, Tax Impact and Information Note (TIIN) setting out HMRC’s assessment of the impacts of the Loan Charge were published when the Loan Charge was announced in 2016. Further TIINs were published alongside subsequent changes to the Loan Charge.
The Digital Services Tax (DST) is a 2 per cent tax to ensure that providers of search engines, social media platforms, and online marketplaces pay UK tax on digital services that reflects the value they derive from UK user-related activities. The DST raised around £800 million of revenues in the financial year 2024-25 in support of vital public services.
DST was introduced as an interim solution to the challenges posed by the digitalisation of the economy to the international corporate tax framework. The UK remains committed to withdrawing DST once a suitable global solution to these challenges is established.
The Government keeps all aspects of the tax system under review. Any potential tax changes would need to be considered carefully as part of the wider Budget process, with decisions taken by the Chancellor at a fiscal event.
The Digital Services Tax (DST) is a 2 per cent tax to ensure that providers of search engines, social media platforms, and online marketplaces pay UK tax on digital services that reflects the value they derive from UK user-related activities. The DST raised around £800 million of revenues in the financial year 2024-25 in support of vital public services.
DST was introduced as an interim solution to the challenges posed by the digitalisation of the economy to the international corporate tax framework. The UK remains committed to withdrawing DST once a suitable global solution to these challenges is established.
The Government keeps all aspects of the tax system under review. Any potential tax changes would need to be considered carefully as part of the wider Budget process, with decisions taken by the Chancellor at a fiscal event.
The Digital Services Tax (DST) is a 2 per cent tax to ensure that providers of search engines, social media platforms, and online marketplaces pay UK tax on digital services that reflects the value they derive from UK user-related activities. The DST raised around £800 million of revenues in the financial year 2024-25 in support of vital public services.
DST was introduced as an interim solution to the challenges posed by the digitalisation of the economy to the international corporate tax framework. The UK remains committed to withdrawing DST once a suitable global solution to these challenges is established.
The Government keeps all aspects of the tax system under review. Any potential tax changes would need to be considered carefully as part of the wider Budget process, with decisions taken by the Chancellor at a fiscal event.