Tag: Treasury

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.

The press release issued by HM Treasury on 1 January 2026.

Businesses to receive boost to investment as a new first-year allowance takes effect today (Thursday 1 January), as the government continues its drive to make Britain the best place to do business.

• Businesses to benefit from new 40% first-year allowance that supports investment and growth – effective from today, 1 January 2026
• New relief allows businesses to save tax on new plant and machinery in first year
• Supports UK’s position as one of the most generous and competitive capital allowances regimes in the world

First announced by the Chancellor at Budget 2025, the government is continuing to offer greater upfront tax reliefs for businesses with a new 40% permanent first-year allowance for main-rate plant and machinery.

This new relief follows calls from businesses to expand full expensing to more assets and businesses, and will mean businesses can deduct much of the cost of their investment in the year they make that investment, cutting their tax bill.

Chancellor of the Exchequer, Rachel Reeves, said:

Saving tax for businesses that are investing is key to building the confidence needed to boost growth. We are building on the UK’s capital allowance regime – one of the most generous in the world – alongside capping Corporation Tax and enabling more scale ups to attract investment to help create a tax system that supports growth.

This will be available for assets bought for leasing and for unincorporated businesses, which do not benefit from full expensing, while preserving the current incentives to invest.

Full expensing allows companies to claim 100% capital allowances on qualifying main rate plant and machinery investments, such as warehouses or construction equipment, which means a company can deduct the entire cost of its investment from its taxable profits in year one, so that for every pound invested its taxes are cut by up to 25p.

The UK has one of the most generous and competitive capital allowances regimes in the world and is top of the rankings of OECD countries for plant and machinery capital allowances.

In line with the commitments made in the 2024 Corporate Tax Roadmap, the government has maintained the parts of the UK Corporate Tax offer that are most important for attracting new investment. This includes capping Corporation Tax at 25% for the rest of this Parliament, the lowest in the G7, and the generous full expensing offer.

Further information

• To ensure this new relief is introduced in a fiscally sound way, at Budget the Chancellor also announced a reduction in the main rate writing-down allowance (WDA) from 18% to 14% from April this year.

The press release issued by HM Treasury on 23 December 2025.

£1m Agricultural and Business Property Reliefs threshold increased to £2.5m from April 2026 – allowing spouses or civil partners to pass on up to £5m in qualifying agricultural or business assets between them.

The government has today (Tuesday 23 December) announced that the level of the Agricultural and Business Property Reliefs threshold will be increased from £1m to £2.5m when it is introduced in April 2026. This allows spouses or civil partners to pass on up to £5m in qualifying agricultural or business assets between them before paying inheritance tax, on top of existing allowances. 

Following the reforms to Agricultural and Business Property Reliefs announced at Budget 2024, the government has listened to concerns of the farming community and businesses about the reforms.

Having carefully considered this feedback, the government is going further to protect more farms and businesses, while maintaining the core principle that the most valuable agricultural and business assets should not receive unlimited relief. The change will be introduced to the Finance Bill in January and will apply from 6 April. 

Raising the threshold will significantly reduce the number of farms and business owners facing higher inheritance tax bills under the reforms, ensuring that only the largest estates are affected. 

Today’s announcement will halve the number of estates claiming Agricultural Property Relief (including those also claiming Business Property Relief) who are affected by the reforms – better targeting the relief.  

As a result:  

• The number of estates claiming agricultural property relief (including those also claiming business property relief) affected by the reforms in 2026-27 halves from 375 to 185.
• Most estates will benefit, with inheritance tax cut by hundreds of thousands of pounds for many families.  
• The number of estates affected by the reforms claiming only business property relief – excluding those holding only AIM shares – will fall by a third, reducing complexity and ensuring support goes where it’s needed most.
• Around 85% of estates claiming agricultural property relief in 2026-27, including those that also claim for business property relief, are forecast to pay no more inheritance tax on their estates. 

Environment Secretary Emma Reynolds said:   

Farmers are at the heart of our food security and environmental stewardship, and I am determined to work with them to secure a profitable future for British farming.  

We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms. We are increasing the individual threshold from £1m to £2.5m which means couples with estates of up to £5m will now pay no inheritance tax on their estates. 

It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.

To deliver this, the government will introduce an amendment to the Finance Bill 2025 to:  

• Increase the threshold at which 100% Agricultural Property Relief and Business Property Relief applies from £1 million to £2.5 million per estate, with 50% relief continuing to apply to qualifying assets above that level.  
• Given the allowance will be transferable between spouses, a surviving spouse or civil partner will be able to pass on up to £5 million of qualifying agricultural and business assets tax-free, on top of existing nil‑rate bands.  This will apply to people who are widowed and have lost spouses or civil partners before the policy was introduced.   

The government remains committed to making the tax system fairer by reducing the generous inheritance tax reliefs available to owners of large agricultural and business estates, while continuing to recognise the importance of farms and businesses to local communities and the wider economy. The revised approach continues to ensure that qualifying agricultural and business assets are taxed at a much lower effective rate than most other assets. The changes we are implementing reflects the concerns that have been raised while preserving the majority of the revenue from reform to help cut debt and borrowing and fund public services. The costings for today’s announcement will be incorporated into the next OBR forecast.  

Today’s announcement follows the government’s commitment to establish a new Farming and Food Partnership Board to bring together senior leaders from farming, food production, retail, finance and government to take a practical, partnership-led approach from farm to fork to strengthen our food production.    

It builds on updates to the planning rules, via the National Planning Policy Framework, to cut unnecessary red tape and help farmers expand their businesses with easier approvals on farm reservoirs, greenhouses, polytunnels and farm shops, boosting food production and rural growth.

The press release issued by HM Treasury on 22 December 2025.

Bingo clubs across Britain are celebrating the scrapping of bingo duty as UK tax minister Dan Tomlinson and the Bingo Association’s Paul Swindon joined players in London.

• Bingo clubs across Britain celebrate budget move to scrap tax on one of the nation’s iconic games 
• Bingo Association hails scrapping of bingo duty as ‘transformative’ as Tax Minister Dan Tomlinson meets players at Buzz Bingo in Tooting
• Around 250 British bingo clubs to be protected by new changes in April 2026

They visited Buzz Bingo Tooting during the Christmas bingo bonanza season following the Chancellor’s Budget announcement that bingo duty would be scrapped from April 2026.

They met Jeeva Jeevahan, General Manager at Buzz Bingo Tooting, alongside some of the club’s regulars, with Tomlinson calling the duty scrapping a ‘full house win’ for the around 250 clubs across the country while Swindon praised the measure as ‘transformative’ for the sector’s survival.

Exchequer Secretary to the Treasury, Dan Tomlinson, said:

This is a ‘full house win’ for bingo clubs and the communities who rely on them. Bingo clubs are about much more than just the numbers – they’re about community, friendship and fun. Scrapping this tax recognises the important role these venues play.

Bingo has been a popular part of British culture since the 1960s, when purpose-built bingo clubs sprang up across towns and cities following the legalisation of commercial gaming, becoming a staple of high streets and a social hub for millions.

Bingo duty is currently charged at 10% on profits – its removal will go towards supporting the 7,000 jobs in the sector, and ensuring bingo remains part of British life for the foreseeable future.

The move is part of a wider gambling tax package announced by Chancellor, Rachel Reeves, at Budget aimed at creating a fairer and sustainable system that will raise over £1 billion a year to go towards the country’s priorities – cutting the cost of living, cutting debt and borrowing, and cutting NHS waiting lists.

Paul Swindon, Head of Governance and Compliance for the Bingo Association:

This visit by the Exchequer Secretary is a clear demonstration of the government’s recognition of the important role bingo clubs play in communities across the country. The decision to abolish Bingo Duty was a transformative moment for our sector and a powerful vote of confidence in the unique community value we provide.

After years of rising costs and economic pressure, this change gives clubs the stability and headroom they need to reinvest, modernise and secure thousands of jobs. It ensures that bingo clubs can continue to thrive as safe, affordable and much-loved spaces at the heart of British life.

We welcome the government’s willingness to listen and to act. This visit shows a genuine commitment to understanding how bingo clubs support local economies and bring people together, and it will make a real difference to the communities we serve.

Further information

• For photos of the visit, please visit the HMT Flickr page.
• Business rates factsheet.
• Many people in the UK enjoy the occasional flutter in moderation, but for others it can be a source of harm. Referrals for gambling addiction have risen by 91% from 2023-24 to 2024-25 with online gaming associated with some of the highest levels of harm.
• In recognition of the associated levels of harm, the Chancellor announced the rate for remote gaming duty will increase from 21% to 40% from 1 April 2026. To reflect lower operational costs compared to in-person operations, remote betting will see an increase from 15% to 25% from 1 April 2027.