Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to reduce inefficiencies in the tax system.

The Government is committed to ensuring that the tax system provides the economic stability needed for growth.

At the Budget in October the Government honoured the manifesto commitment to cap Corporation Tax and outlined a clear plan in the Corporate Tax roadmap. The Government also took steps to repair the public finances through reforms that removed inefficient and distortive reliefs from the tax system. This included removing loopholes to ensure the tax system was more sustainable alongside delivering on the Government’s manifesto commitments to raise revenue in a fair way.

At Spring Statement 2025 we went further and faster to close the tax gap, making sure that everyone pays the tax they owe, and in April the Government announced measures to simplify the tax system to help deliver the Plan for Change. These measures will reduce burdens on employers and small businesses, and reform the tax system to ensure it continues to be fit for the modern world.