Tag: Treasury

The press release issued by HM Treasury on 24 March 2026.

Households across Britain set to benefit as Chancellor acts on food prices, energy bills and profiteering – taking action on cost of living pressures while securing Britain’s long-term energy independence.

• New measures to protect working people through anti-profiteering framework to ensure the CMA and other regulators can clamp down on price gouging if it takes place. 
• Powers to progress nuclear energy, with legislation to stop red-tape and vested interests holding back our energy security and indemnities to keep projects moving where they face legal challenge.
• Options for targeted reductions in import tariffs that could bring down food prices at the till for families across Britain to be assessed.

Today (Tuesday 24 March) the Chancellor set out measures to protect working people from any companies seeking to exploit this crisis, to take on vested interests holding back our energy security and to assess specific import tariff reductions to bring down food prices.

A new anti-profiteering framework will be introduced to protect working people to deal with businesses unfairly putting up prices to profiteer during this crisis. As part of this, the government will not hesitate to introduce time-limited, targeted powers if needed to ensure the CMA and other regulators can clamp down on price gouging if it takes place. 

Decisive new legislation in the next Parliamentary session will help secure Britain’s energy future, ensuring all reforms that speed up nuclear delivery are in place by the end of 2027 which will streamline approvals, reduce unnecessary delay and bring new, reliable domestic power sooner, cutting exposure to volatile gas prices. New government-backed guarantees will also be assessed to keep priority infrastructure projects moving where planning consent is legally challenged. Targeted cuts to agri-food tariffs will be explored to help bring down food prices, focusing on the areas where consumers would benefit most.

Speaking in the House of Commons the Chancellor, Rachel Reeves said:

The longer and more severe the conflict, the greater the impact on our economy and our country.

That makes the work we have been doing since the election even more important, 

To grow the economy and increase wages, through the plans I set out in my Mais lecture last week, 

And to bear down on the cost of living and build resilience in the public finances, through iron-clad fiscal rules.

The Chancellor also said:

I am preparing for the future as this conflict goes on. I know that families and businesses are worried about the impact of rising prices.

I have said that we will be responsive to a changing world and responsible in the national interest

And the Chancellor went on to tell the House:

We did not start this war. But the ongoing conflict in the Middle East affects us, and we are responding to it.

The impacts remain uncertain, but the action we have taken since the election has ensured we are in a strong position to face this latest shock.

The further steps we have taken since the start of the conflict, and the additional action I have set out today, are all focussed on a single purpose – to protect working people and to protect the public finances.

The Chancellor set out how preparations for the future would focus on being responsive to the impact of this conflict and responsible with the public finances. This builds on the extension of the 5p fuel duty cut for 17 months since the election, the launch of the Cheaper Fuel Finder and a push to ensure 100% compliance, £53 million to protect those who most need it with the price of heating oil, and energy bills capped until the end of June saving the average household £117, with £150 for vulnerable households, and tiding families over until the winter.

The Chancellor was also clear on the importance of maintaining stability in the public finances, and lessons must be learnt from previous support packages which saw households in the top income decile receive an average of £1,350 of direct energy bill support (Energy Bills Support Scheme and Energy Price Guarantee), equivalent to 11% of the total spend.

As a result, large increases in borrowing drove up inflation and interest rates, leading to higher costs for people with loans or mortgages. 

This week both the Chancellor and Business Secretary will convene an extraordinary meeting of the Regulators Council, including the CMA, to discuss their work to ensure markets continue to function properly and protect consumers. The Chancellor will also meet with supermarkets and banks this week to discuss how they can support consumers as well as Business Representative Organisations to understand what businesses of all sizes need to get them through this conflict.

This comes as the government and regulators step up action to protect consumers from unfair practices. As announced earlier this month, the Competition and Markets Authority (CMA) is stepping up monitoring on petrol and diesel prices and will publish an update as soon as possible. The CMA has also launched a market study on heating oil and is examining concerns from consumers about heating oil, and has made clear it will take enforcement action if it finds potential breaches of consumer law.

The press release issued by HM Treasury on 20 March 2026.

People who owe money to government will receive clearer, more tailored support to repay in a way they can afford, under new plans launched during Debt Awareness Week.

• Better use of data will help create realistic repayment plans, ensuring payments remain manageable for those who need support.
• While supporting people in difficulty, the government will maintain a firm approach to fraud and deliberate non‑payment, helping protect over £100 billion collected each year to fund vital public services.

Millions of people and businesses who owe money to government will benefit from more personalised and affordable repayment support, as the government sets out new plans to improve how debt owed to the public sector is managed.

The 2026–2030 Government Debt Management Strategy outlines how departments will better use data and earlier engagement to help people who fall behind on payments, ensuring repayment plans reflect individual circumstances and remain genuinely affordable. This means people who are struggling will have clearer routes to support and more consistent treatment across government.

Government is owed money for a wide range of reasons — from unpaid taxes and benefit overpayments, to fines, fees and loans. Recovering this money matters because every pound collected helps fund public services that people rely on every day, including the NHS, schools and policing.

The strategy commits government to three principles:

1.    Preventing avoidable debt, using data and early contact to intervene before debts occur or grow.

2.    Resolving existing debt fairly and consistently, with repayment plans that take account of people’s ability to pay.

3.    Improving skills and technology across departments so debt can be managed more efficiently and compassionately.

While strengthening support for people in genuine financial difficulty, the plans also ensure a tough approach to those who intentionally avoid payment or have obtained money through fraud or criminal activity.

Lucy Rigby KC MP, Economic Secretary to the Treasury

We want to make sure that those who owe money to government are treated fairly and given the chance to pay it back in a way that’s manageable.

But we’re also being clear: if you’re deliberately avoiding paying what you owe, or you’ve obtained money through fraud, we will seek to recover it. That money funds our NHS, schools and the services people depend on every day.

This strategy is about doing both of those things properly — protecting taxpayers and supporting people who are struggling.

The strategy has been published during Debt Awareness Week which shines a light on how common debt is. The government recognises that debt is a reality for many households, particularly as the cost of living continues to affect family finances. The strategy commits to working alongside debt advice organisations and wider debt industry to make sure people know where to turn for help.

Chris Leslie, chief executive at the industry trade body Credit Services Association said:

This strategy sets the government on the right course, striking an appropriate balance between standing up for the taxpayers’ best interests, while also recognising that individuals who owe money sometimes require help and flexibility in managing their repayments. Early engagement is being advocated, which will make a real difference in how cases are managed and it is encouraging to see a clear commitment to embracing new technologies and providing specialist support. The Credit Services Association is pleased to see the government taking collections practices seriously and investing in the systems, processes and skills of those handling recoveries – all necessary to ultimately pay for our vital public services.

Vikki Brownridge, Chief Executive Officer at StepChange, said:

We welcome the 2026 – 2030 Government Debt Management Strategy and the government’s responsible creditor commitment – embedding fairness principles across government will help this goal, as well as a growing focus on preventing avoidable problem debt.

At StepChange, we see how problem debt is driven by cost-of-living pressures and financial shocks. So, it’s positive to see the Strategy acknowledge the financial harm and social cost problem debt creates, and the importance of early intervention. 

The principles laid out in this strategy are important steps forward, aligning government debt collection with good practice in other regulated sectors, namely financial services, energy, and social housing.

More information

• The 2026–2030 Government Debt Management Strategy is published by HM Treasury and the Government Debt Management Function.
• Link to strategy here.
• Debt Awareness Week runs from 16 to 20 March 2026 and is led by StepChange Debt Charity.

The press release issued by HM Treasury on 20 February 2026.

HM Treasury has today launched a recruitment campaign for a new Chair of the Office for Budget Responsibility (OBR).

The OBR is the UK’s official independent economic and fiscal forecaster, responsible for examining and reporting on the sustainability of the public finances. The Budget Responsibility Committee (BRC), led by the Chair, has executive responsibility for the core functions of the OBR, including the judgements made in its economic and fiscal forecasts.   

As with all appointments to the Budget Responsibility Committee, the Chancellor will make the appointment, subject to the consent of the Treasury Committee.

Further information  

• As set out in the Budget Responsibility and National Audit Act 2011, appointments to the OBR’s BRC, including the Chair, requires the consent of the Treasury Committee. The candidate nominated by the Chancellor will therefore be subject to a pre-appointment hearing with the Treasury Committee.  
• The Budget Responsibility and National Audit Act 2011 allows each term of a BRC member, including the Chair’s, to be up to 5 years and each member may serve a maximum of two terms.  
• While the Chair’s post is currently vacant, the two current members of the BRC, Professor David Miles and Tom Josephs, will continue to lead the OBR.   

About the OBR  

The OBR was created in 2010 to provide independent analysis of the UK’s public finances. The OBR is led by the three members of the BRC who have executive responsibility for carrying out the core functions of the OBR, including any judgements made in the preparation of the economic and fiscal forecasts. They are supported in their work by the OBR’s permanent staff led by the OBR Chief of Staff. The current members of the BRC are:   

• Chair (vacant)  
• Professor David Miles  
• Tom Josephs  

About the recruitment process   

HM Treasury will run an open and competitive recruitment campaign to find a new Chair. The successful candidate will be selected by the Chancellor of the Exchequer in line with the requirements set out in the Budget Responsibility and National Audit Act 2011 and in accordance with the principles of the Governance Code for Public Appointments. The appointment will then be finalised subject to the Treasury Committee’s consent.

The press release issued by HM Treasury on 13 February 2026.

Professor Brian Bell has been appointed as the new Chief Economic Advisor to the Treasury and Head of the Government Economic Service, replacing Sam Beckett.

Professor Bell will be the principal advisor to the Chancellor and the Prime Minister on the macroeconomy and fiscal policy, leading the Treasury’s economics function and its work to deliver the government’s economic objectives. He will commence the role on Monday 9th March.

He replaces Sam Beckett, who held the role from 2023 until her retirement earlier this year.

Professor Bell is currently Chair of the Migration Advisory Committee and a Professor of Economics at King’s Business School, King’s College London. He has previously held roles at the Bank of England and the International Monetary Fund, as well as positions in the private sector, working as an economist and proprietary trader for hedge funds and investment banks in London.

Chancellor of the Exchequer Rachel Reeves said:

“Thanks to the choices we’ve made we have had six interest rate cuts since the election, inflation is falling faster than expected and we have beaten the OBR’s growth forecasts. Through stability, investment and reform, this government has the right plan for our economy and the appointment of Professor Brian Bell will strengthen our economic leadership as we deliver for working people.”

James Bowler, Permanent Secretary to the Treasury, said:

“I am very pleased to welcome Brian to HM Treasury as Director General Economics and Fiscal, and Chief Economic Advisor. His extensive experience in economic research and policymaking, at leading financial institutions, and the financial services sector will be invaluable as we work to deliver the government’s economic agenda.

“I look forward to working with him as he leads the department’s economic analysis, advice to ministers, and Government Economic Service.”

Professor Brian Bell said:

“This is a pivotal moment for the UK economy, with an ambitious plan to deliver growth, reduce the cost of living and improve economic security for households and businesses across the country.

“I look forward to working with colleagues across the Treasury, the wider civil service and our partners to provide rigorous economic advice to the Chancellor and the Prime Minister, and to help ensure policy decisions deliver real benefits for people and communities in every part of the UK.”

The press release issued by HM Treasury on 26 January 2026.

UK banks agree £11 billion lending packages to support small business growth, particularly for small and mid-sized enterprises.

• Money will help firms invest, hire and expand into new international markets, taking advantage of major new trade deals  
• Agreement reached at a roundtable convened by Business Secretary Peter Kyle 

UK businesses to benefit from a landmark £11 billion lending package to help them invest and expand abroad, to grow their businesses and the economy.   

The lending commitment, from the UK’s five leading banks, is one of the largest collective moves by the banking sector in over a decade, representing an historic show of confidence in the UK economy.  

Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the Government today (26 January) at a roundtable in Westminster convened by the Business Secretary and the CEO of UKEF Tim Reid.  

Together, the banks serve half of all British businesses across all corners of the country.   

Business Secretary Peter Kyle said:

Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.  

The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise.

Chancellor of the Exchequer Rachel Reeves said:

Britain’s small businesses are ready to take on the world – and this £11 billion commitment gives them the firepower to do it. 

We’re turning the power of the City into rocket fuel for UK exporters – backing ambitious firms in every part of the country to break into new markets, create good jobs and drive the next decade of British growth.

The lending will be drawn entirely from the banks’ own balance sheets and will give small and mid-sized enterprises a powerful route to access the finance and expert advice they need to compete on the world stage. 

UK Export Finance (UKEF), the government’s export credit agency, will guarantee up to 80% of eligible loans issued by each bank. Banks can apply UKEF’s guarantee automatically for working capital loans of up to £10 million. 

Alongside funding, businesses will also benefit from advisory support through banks’ relationship managers and UKEF’s regional Export Finance Managers, helping them navigate global markets and seize new opportunities.  

UKEF Chief Executive Tim Reid said:

British exporters are at the heart of economic growth. This partnership unlocks billions of pounds to help UK businesses compete to win overseas contracts, showing how UKEF stands behind companies with global ambitions.

Economic growth is the government’s number one mission, and backing British exporters is central to delivering it. This partnership puts billions of pounds within reach of ambitious small businesses across the UK, reinforcing UKEF’s role as one of government’s most powerful levers for growth. It builds on the government’s wider commitment to backing small businesses as engines of the economy, including measures to tackle late payments, cut red tape and create the right conditions for investment.  

Together, these form a joined-up approach to removing barriers and helping smaller firms scale up. Working in partnership with business is central to the government’s growth mission. Alongside the trade and modern Industrial Strategies, the government is building on the UK’s unique strengths in high-growth sectors, boosting exports abroad and ensuring the benefits of growth are felt across every part of the country. 

Stephanie Betant, Head of Global Trade Solutions for HSBC, said:

Amid geopolitical volatility, UK businesses continue to reap the benefits of global trade. Recent HSBC UK research found that 82% of businesses that trade overseas expect to grow over the next two years. 

As a UK bank providing market leading international services, we help companies to invest, innovate, and export with confidence. We look forward to continuing this work, using our international connections to help leaders navigate complexities and unlock sustainable growth overseas.

Robert Begbie, CEO, Commercial & Institutional Banking, NatWest Group said:

As the UK’s biggest bank for business, NatWest is committed to supporting companies across the UK to innovate, expand into international markets and play a bigger role in driving longterm economic growth. By improving access to the right finance, we’re helping those businesses to grow with confidence.

John Baldwin, CEO of Santander Corporate and Commercial Banking, said:

Our recent Trade Barometer showed UK businesses have an ever-growing interest in international expansion – despite the various geopolitical challenges they face. I’m proud to have worked with UKEF on the lending packages announced today, which will help power the overseas growth ambitions of businesses across the UK – and in turn boost the UK economy.  

In addition to our partnership with UKEF, Santander helps businesses expand into new markets with our sector and country expertise, and our new digital Navigator Global platform.

Matt Hammerstein, CEO of Barclays UK Corporate Bank, said:

Small and medium-sized businesses are the heart of the UK economy. We welcome the support this brings to UK exporters and those looking to export. By working closely with Government and with UKEF, we can help ambitious firms access the finance, expertise and international networks they need to export, scale and compete at global scale.  

As a globally connected bank, Barclays stands ready to deploy capital for growth and provide the trade support to help reduce barriers to new markets, manage risk and unlock opportunity. We are excited to join the Government and our fellow lenders in supporting British businesses to invest, innovate and win new customers around the world.

Paul Kempster, Managing Director, Commercial Banking Coverage, Lloyds Banking Group, said:

Working alongside UKEF demonstrates how banks and government can come together to unlock the full potential of UK businesses to help them compete and win on the global stage. This dedicated trade finance support will enable more firms to seek new export opportunities, scale internationally and drive investment and jobs back into the UK.

Through its Plan for Small Business, the UK Government is delivering the most comprehensive package of support for small and medium sized business in a generation. This includes the most significant legislation in over 25 years to end the scourge of late payments, which closes 38 business daily, a massive £4 billion finance boost to increase access to finance for entrepreneurs, and the launch of the new Business Growth Service, which is bringing together government support and advice in a single place for the first time.

The press release issued by HM Treasury on 14 January 2026.

Government announces the biggest transformation to travel in the North in a generation as the Chancellor sets out new Northern Growth Strategy and promises the renewal of Britain to make all parts of the country better off.

• Landmark investment in the North will see working people in Northern cities and towns benefit from faster rail links, shorter commutes, better jobs and new homes under new growth plan.   
• The landmark Northern Powerhouse Rail at the heart of the plans will reverse years of underinvestment and deliver long-awaited faster and more frequent rail across the North, better connecting Liverpool, Manchester, Leeds, Bradford, Sheffield, York, with improved services to Newcastle and Hull.

People across the North of England will benefit from faster commutes, better jobs, more homes and increased investment in their communities as the government launches a major growth plan for the North – with Northern Powerhouse Rail at its heart. 

Set to be the biggest transformation to travel in the North in a generation, the Chancellor will set out how her promise to drive economic growth through stability, investment and reform will reverse years of chronic underinvestment at the hands of the previous government.  

This underinvestment was an economic dereliction of duty, with communities across the region repeatedly sold false promises of growth and better connectivity, and many people choosing to leave their hometowns to find jobs, security and opportunity elsewhere as a result. 

This government is righting that wrong with the Chancellor having already taken the necessary decisions to put a record £120 billion for capital investment into long-awaited infrastructure projects this Parliament including road, rail and green energy that will generate the jobs of the future and turbocharge growth. 

The new growth drive will strengthen connections between some of the fastest growing city regions in the country – connecting Liverpool, Manchester, Leeds, Bradford, Sheffield, Huddersfield, Warrington, York and improved services to Newcastle and Hull – to drive productivity and create tens of thousands of jobs.  

By way of illustration, up to £40 billion a year could be injected into the British economy if productivity in the North was lifted just to the national average – but of course that is not the limit to government’s ambition.  

Northern Powerhouse Rail – the backbone of the plan – will see a major new rail service across the North that is faster and more frequent, transforming commutes for Liverpool, Manchester, Warrington, Leeds, Bradford, Sheffield and York, with services running onto Newcastle and Hull. From boosted connectivity between these fast-growing city regions will come more jobs, new homes and a greater number of opportunities for businesses to invest and expand. 

Connectivity in the North lags behind the South. Where a Paddington to Reading rail journey of 35 miles takes just 22 minutes, a rail journey between Liverpool and Manchester Airport of just 29 miles can take 1 hour and 25 minutes, stopping 21 times. This landmark upgrade to travel will reduce journey times like these in the North.  

This is the latest action being taken by the government to deliver economic growth in parts of the country previously overlooked. This landmark upgrade to rail travel is one of the central building blocks of a northern growth corridor from Liverpool to York – which has the potential to rival some of the most successful growth corridors in Europe, like the Rhine-Ruhr region in Germany and the Randstad in the Netherlands – and follows immediate action to ease the cost of living for people by freezing rail fares for the first time in 30 years and maintaining the £3 cap on bus fares.

Prime Minister, Keir Starmer, said: 

I spent three happy years in Leeds as a university student, a vibrant city I was proud to call home. But I’ve seen first hand what underinvestment and empty pledges do to cities across the North. 

A reliable commute, a secure job, a thriving town centre – these are all things that everyone should expect. But over and over again people in Northern communities, from Liverpool and Manchester to York and Newcastle have been let down by broken promises. 

This cycle has to end. No more paying lip service to the potential of the North, but backing it to the hilt.  

That’s why this government is rolling up its sleeves to deliver real, lasting change for millions of people through Northern Powerhouse Rail: a major new rail network across the North that will deliver faster, more frequent services. 

This investment is proof we’re putting our money where our mouth is, working with local leaders to deliver the transport links that will help working people do what they need to in life – getting to work, taking the kids to school, or days out with the family.

Chancellor of the Exchequer, Rachel Reeves, said: 

If economic growth is the challenge, investment and renewal is the solution. That’s why we’re reversing years of chronic underinvestment in the North. 

Our transformative plans will create jobs, build homes and unlock opportunities for businesses to invest. That’s how we deliver economic growth, a renewed Britain and more money in working people’s pockets.

After more than a decade of dither and delay from previous governments, the Chancellor has backed Northern Powerhouse Rail with £1.1 billion over the Spending Review period, allowing progress on planning, development, and design work to be made which will unlock benefits for the people of the North from the 2030s. NPR will build on the Transpennine Upgrade scheme, which is proceeding on time and on budget. 

The first phase of the programme will deliver improved connections between Sheffield and Leeds, Leeds and York, and Leeds and Bradford. In the North East, development work on the Leamside Line will also be taken forward alongside Northern Powerhouse Rail. This will be followed by a new route between Liverpool and Manchester, running via Manchester Airport and Warrington, and finally by improved connections across the Pennines between Manchester, Leeds, Bradford, Sheffield and York. Regular services will run onward to Newcastle via Darlington and Durham; Hull; and Chester for North Wales connections. 

This will unlock new benefits for the people of the North supporting new, skilled jobs for the planning, development, design and construction of the project. The government is working closely with employers and local leaders to help fill local skills gaps and local colleges across the country are already set to receive £570 million to expand their training facilities. 

The city regions of the North have huge untapped economic potential and the modern Industrial Strategy, published last June, set out a compelling economic case for prioritising 8 strategic sectors clustered across its city regions. Greater Manchester is one of the fastest-growing tech centres in Europe – with burgeoning cyber, professional and creative industries. Leeds and West Yorkshire are emerging as the ‘Northern Square Mile’ for financial services, while South Yorkshire is at the cutting edge on Defence and Advanced Manufacturing, Liverpool City Region on Life Sciences, and Newcastle and the North-East on the clean energy transition. 

The government is working with mayors, other local leaders, and businesses to announce more detail on its Northern Growth Strategy taking advantage of these strengths, firing up productivity and prosperity across the North.

Transport Secretary, Heidi Alexander, said: 

For too long, the North has been held back by underinvestment and years of dither and delay – but that ends now. 

Northern Powerhouse Rail will deliver faster, more frequent services across the great cities of the North, unlocking jobs, homes and opportunities and creating a world-class growth corridor that people of the region need and deserve.

Housing, Communities and Local Government Secretary, Steve Reed, said: 

We’re backing faster rail links across the North so people can get to work quicker and businesses can grow. Better connections mean better paid jobs, new investment in towns and cities, and stronger local economies. 

This is the first step towards building new routes between Liverpool, Manchester, Sheffield and Leeds – connecting people to new homes, new opportunities, and thriving high streets communities can be proud of.

Steve Rotheram, Mayor of the Liverpool City Region, said: 

Two hundred years ago, we built the world’s first passenger railway between Liverpool and Manchester – and changed history. After more than a decade of dither, delay and broken promises, this is the start of a new era, with a genuinely strategic approach and a government finally backing Northern Powerhouse Rail in full. 

A creaking rail system has held the North back for too long. Our journeys aren’t just slower – our growth has been slower too. Poor connectivity doesn’t just hold people back – it holds our economy back. It limits our productivity, restricts freight capacity, and chokes off opportunity. 

Today that changes. This is the kind of ambition we’ve been crying out for. Not another empty slogan or back of a fag packet plan but real investment, delivered in a proper partnership with local leaders that will unleash our latent potential and unlock growth in all of our communities right across the great North.

Mayor of Greater Manchester, Andy Burnham, said:  

Finally, we have a government with an ambitious vision for the North, firm commitment to Northern Powerhouse Rail and an openness to an underground station in Manchester city centre. A modernised Manchester Piccadilly could become the Kings Cross of the North, acting as a catalyst for major growth in our city region and beyond.  

Over the past decade, we’ve become the UK’s fastest growing city region, but underinvestment in rail infrastructure has long acted as a brake on further growth. Today marks a significant step forward for Greater Manchester. We’ll now work at pace to prove the case for an underground station and work up detailed designs for the route between Liverpool and Manchester.

Tracy Brabin, Mayor of West Yorkshire said:  

For too long, unreliable rail links have caused misery for people living and working in the North, while holding back our ambitious plans for growth. 

Today we have a solid commitment from government to invest in connecting our towns and cities including taking forward plans for Bradford station, capacity upgrades in and out of Leeds, and electrification across the network to allow more frequent and faster trains. 

We made the case as Yorkshire mayors that we needed better connectivity between our biggest cities, and we are working with the government to deliver better transport across Yorkshire and the north. 

This will help us boost capacity, reliability and journey times between our biggest cities, driving jobs and growth across Yorkshire.

Oliver Coppard, Mayor of South Yorkshire said:

For South Yorkshire, Northern Powerhouse Rail represents real progress. Better connections between Sheffield, Leeds and Manchester mean quicker, more reliable journeys, opening up more choice around work, skills and opportunity for everyone across our region. 

This plan for Northern Powerhouse Rail isn’t just about faster trains. It’s about working with central government to build a transport system that matches the ambition we have for South Yorkshire over the next decade and beyond. There’s still a lot to do, but today’s commitment from government gives us confidence we will see a step-change in transport across the North.

Kim McGuinness, Mayor of the North East said:  

The Leamside Line through County Durham is a once in a generation project that has the potential to transform our communities and I’m pleased the government has committed to work with us on this. 

My region deserves major investment in transport and that’s what we’re delivering, ensuring Northern Powerhouse Rail services reach Newcastle, via Darlington and Durham. We will work with government on the proposed Leamside reopening, aiming to bring back rail to parts of County Durham for the first time in decades.

David Skaith, Mayor of York and North Yorkshire, said: 

This is a strong endorsement of the vision we set out in our White Rose Plan for Rail. For too long the North has missed out on investment, but this £45 billion commitment changes that.  

By investing in capacity upgrades at York’s station, Northern Powerhouse Rail puts York at the heart of a modern transport network for the North.   

Unlocking better and more reliable services for everyone who lives in, works in or visits York puts our city on an even stronger footing to grow the regional and national economy.

Northern Powerhouse Rail will be kept within a fair funding envelope over its entire construction period to ensure it remains good value for taxpayers both now and in the future, avoiding a repeat of past mistakes where major projects like HS2 have gone significantly over budget. 

A funding cap of £45 billion will be set for the programme. £1.1 billion over the Spending Review period is the first stage of this, allowing development and design work to progress and enabling the creation of a detailed delivery plan which will include timings. 

Alongside this, to support and build on the strategic ambition for the project, the government has set out its intention in the long term to build a new rail line between Birmingham and Manchester. This is not a reinstatement of HS2, further work is required to establish how it can best support our rail ambitions for across the North, and its delivery would happen after the completion of Northern Powerhouse Rail. The government is learning the lessons of HS2 to ensure that the programme does not repeat its failures. We will drive efficiency while still delivering key benefits for the North. 

This comes as the government is progressing the Transpennine Route Upgrade, and we have already made a £15 billion investment into local transport in city regions and added 60,000 extra seats each week on the East Coast Mainline, with new services to Bradford and reduced journey times between London, Leeds and Newcastle.   

Other action to unlock growth right across the country is already underway, with the approval of expanding Heathrow Airport set to create over 100,000 jobs, the multi-billion-pound deal for build Sizewell C expected to create savings of £2 million a year across our future electricity system, and the striking of trade agreements with the US, India, the EU and the Gulf injecting billions into the British economy.

The press release issued by HM Treasury on 5 January 2026.

Millions of taxpayers have less than one month to file their Self Assessment tax return.

• 5.65 million people still need to file their Self Assessment tax return
• thousands of people celebrated the New Year by filing their Self Assessment tax return
• 6.36 million people head into 2026 with their tax affairs in order

Thousands of people got a head start on their 2026 resolutions by filing their Self Assessment tax return over the New Year.

With less than a month to the 31 January deadline, 54,053 customers chose to ring in the New Year by filing their tax return for the 2024 to 2025 tax year on New Year’s Eve and New Year’s Day. The figures, show:

• 342 customers beat the bells by filing their tax return in the last hour of 2025
• 19,789 missed their traditional New Year’s Day walk or day in front of the TV to file their tax return instead
• 3,927 people filed between 11am and 11:59am on 31 December – the most popular time to file over the 2 days

More than 6.36 million taxpayers have submitted their tax return so far, which leaves almost 5.65 million who still need to complete their Self Assessment. Those who miss the deadline could face an initial late filing penalty of £100.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

New Year is a great time to start afresh. What better way than to ensure your tax affairs are in order for another year than completing your tax return. If you have yet to start, the clock is ticking, go to GOV.UK and start today.

A wide range of online help and support is available on GOV.UK to help people fill in and file their tax return.

Customers can start their tax return, save it and re-visit it as many times as they need to before they submit it. And, once they’ve sent it, the bill doesn’t have to be paid straight away, but does need to be paid before the 31 January deadline.

The easiest way to pay is through the HMRC app. Customers can also set up notifications in the app to ensure they know when payments are due so they don’t miss a deadline.

Information about different payment options can be found on GOV.UK.

Customers who are unable to meet the tax return deadline need to tell us before the 31 January. HMRC will treat those with reasonable excuses fairly.

The penalties for late tax returns are:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for late payments of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

People who complete a Self Assessment tax return to pay the High Interest Child Benefit Charge (HICBC) can opt out and choose to pay it through their tax code via the new PAYE digital service. 

Eligible customers need to notify HMRC to stop Self Assessment before the filing deadline. Where a tax return has already been sent, customers can choose to stop from the following tax year. HMRC will then amend their tax code and they will be registered to pay HICBC through PAYE. 

Customers do not need to include their 2025 Winter Fuel Payment, or Pension Age Winter Heating payment in Scotland, on their tax return for the 2024 to 2025 tax year as payments received in Autumn 2025 will be recovered in the 2025 to 2026 tax return, due by 31 January 2027. 

Self Assessment customers are at increased risk of being targeted by criminals and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

Further Information

See more information about Self Assessment.

New Year filing figures include:

• 34,264 customers filed on New Year’s Eve, the most popular time being 11:00 to 11:59 when 3,927 filed their tax return
• 19,789 customers filed on New Year’s Day, the most popular time being 16:00 to 16:59 when 1,994 filed their tax return

More than 12 million people are expected to file a Self Assessment tax return for the 2024 to 2025 tax year.

Sole traders and landlords with a turnover above £50,000 will be required to use Making Tax Digital (MTD) for Income Tax from 6 April 2026 and be required to submit quarterly summaries of their income and expenses to HMRC. HMRC is urging eligible customers to act now and sign up to Making Tax Digital as this is the best way to get ahead, giving you extra time to select software and familiarise yourself with the new service. Agents can also register their clients via GOV.UK.

People who have sold assets such as shares after 30 October 2024 need to be aware of changed rates of Capital Gains Tax for the disposal of assets when completing their Self Assessment tax return as it won’t automatically calculate the correct amount of Capital Gains Tax due. Instead, they may need to work out an adjustment to the tax automatically calculated using the adjustment calculator on GOV.UK.

The press release issued by HM Treasury on 2 January 2026.

Today (Friday 2 January) online mini cab firms have been barred from illegitimately using a niche scheme to avoid tax.

• Cabbies and small taxi companies to benefit as online minicab firms stopped from using niche scheme to avoid paying tax.
• Reform announced at Budget ensures everyday cabbies can compete fairly.
• Closure to bring in £700 million a year to help cut waiting lists, cut debt and borrowing, and cut the cost of living.

As announced at the Budget by the Chancellor, private hire vehicle operators in London will no longer be able to use the Tour Operators Margin Scheme – a niche tax scheme designed for tour operators and holiday coach trips – to significantly reduce the VAT they pay on fares.

This means that black cabs will no longer have to compete with online mini cab firms who are misusing this scheme to pay less VAT.

Chancellor of the Exchequer, Rachel Reeves, said:

We’re putting the brakes on the illegitimate use of a niche tax scheme to protect everyday cabbies. We’ll use the £700m a year this raises to deliver the country’s priorities – cutting the cost of living, cutting waiting lists and cutting debt and borrowing.

Steve McNamara, General Secretary of the Licensed Taxi Drivers Association, said:

The government’s decision to apply VAT to all private hire journeys is a landmark step for fairness and integrity in our industry. For too long, drivers and small operators paying the full 20% VAT have had to compete with online mini cab firms benefiting from a niche tax scheme.

We welcome this move and commend the government for taking decisive action.

The Tour Operator’s Margin Scheme is a specialist VAT rule designed for genuine travel and holiday businesses, allowing them to pay VAT only on the profit they make on package trips, not the full fare, typically reducing the effective VAT rate to 4%.

First announced by the Chancellor at Budget 2025, today’s measure will prevent the small number of big companies accessing the Tour Operator’s Margin Scheme, as they have been doing.

By supporting fairer competition, the government is protecting around £700 million in revenue, helping deliver the public’s priorities – cutting waiting lists, cutting debt and borrowing, and cutting the cost of living.

Smaller operators outside London, where passengers book directly with drivers, and all black cabs will not be affected by this reform to the Tour Operator’s Margin Scheme.