Tag: Treasury

The press release issued by HM Treasury on 16 April 2026.

The Government has announced that electricity bills will be cut by up to 25% for over 10,000 businesses through the British Industrial Competitiveness Scheme.

• Chancellor announces bold action on businesses’ electricity bills during IMF meetings in Washington, as Government strengthens Britain’s economic security – helping deliver stability, keeping costs down, and boosting competitiveness.
• Bills cut by up to 25% for over 10,000 manufacturers from April 2027, with no increase to household and business energy bills.
• British Industrial Competitiveness Scheme (BICS) to be expanded by 40%, with one-off additional payment in 2027 rolled out to an extra 3,000 businesses and cover support firms would have received from April 2026.

The Chancellor Rachel Reeves today [16 April] confirmed electricity bill cuts for over 10,000 manufacturers as the next phase of the Government’s plan to boost Britain’s competitiveness.

The final design of the British Industrial Competitiveness Scheme (BICS), first announced in last year’s Modern Industrial Strategy, means the scheme will be expanded to cover an extra 3,000 businesses.

The announcement comes as the Chancellor is in Washington to set out Britain’s plan for economic security through the Middle East crisis — prioritising stability, keeping costs down for families and businesses, taking back control of our energy costs, and going further and faster on our plan for a stronger, more resilient economy.

Chancellor of the Exchequer Rachel Reeves said:

This Government has the right plan for the economy: backing British industry, cutting electricity costs, and building a stronger, more resilient future. 

Today’s announcement will cut energy bills for over 10,000 manufacturers, helping businesses to compete, win and create good jobs across the country, and to deliver our modern Industrial Strategy.

Business Secretary Peter Kyle said:

We are a government of action, and when global instability puts businesses under pressure we’ll always do what’s needed to support them and ensure Britain’s resilience. By extending the reach of BICS by 40 percent, we’re acting decisively to tackle the number one issue that businesses face head-on.

This is what our Modern Industrial Strategy is all about: giving businesses certainty and stability in an unstable time, and backing Britain’s fastest growing sectors with the support they need to prosper and deliver good jobs right across our communities.

Automotive and aerospace, steel, and pharmaceuticals are among the sectors where eligible businesses are to benefit from a one-off additional payment in 2027. This will cover the support firms would have received if BICS had been in place from April 2026.

Eligibility has also been expanded by 40%, from 7,000 to over 10,000 businesses. This targets support at energy-intensive firms on the number one issue they face – high electricity costs.

From April 2027, eligible firms will see electricity bills cut by up to 25 percent. Households will see no increase in their bills as a result.

BICS will exempt eligible businesses from the indirect costs of three electricity schemes: the Renewables Obligation, Feed-in Tariffs, and the Capacity Market. This is worth around £35–£40 per MWh.

It is expected to be worth up to £600 million per year from April 2027. Households and other businesses not benefitting will see no increase in their energy bills.

The scheme will be funded through a combination of changes within the energy system and Exchequer funding, with full detail to be set out in Budget 2026.

Rain Newton-Smith, CBI Chief Executive, said:

This move marks a significant step towards addressing the high energy costs that are placing growing financial pressure on UK businesses and undermining their international competitiveness.

By expanding eligibility and introducing backdated payments to the British Industrial Competitiveness Scheme, the government has shown it is listening to firms grappling with volatility in global energy markets.

As the UK looks to reshape and modernise its industrial base, this decision provides an opportunity to rethink how we fund our energy infrastructure. Extending this competitiveness-first approach across the wider economy could help support growth.

Mike Hawes, SMMT Chief Executive said:

The final design of the British Industry Competitiveness Scheme (BICS) is a major win for Britain’s automotive manufacturers, promising to drive down industrial energy costs and boost competitiveness.

This decisive first step answers our longstanding calls for energy support that reaches the whole of the automotive manufacturing supply chain and recognises the sector’s critical contribution to the UK economy. It sends a clear and immediate signal that we are open for business and a prime destination for investment.

Shevaun Haviland, Director General of the British Chambers of Commerce said:

Expanding BICS is the right move to help some firms struggling across the UK. It shows the government has listened to our calls for more energy intensive manufacturing businesses to receive help with the cost of energy.  

This welcome first step will help make more of these firms remain globally competitive. Companies will also be pleased that support will be backdated to April 2026, as we called for, further acknowledging the impact of recent energy cost volatility.

Sectors that could benefit include automotive and aerospace, steel producers, metal fabricators, pharmaceutical and medical supplies companies, recycling businesses, plastic producers, nuclear fuel processors, and cooling and ventilation equipment manufacturers.

A second consultation on the regulatory changes needed to deliver the scheme closes on 14 May 2026. Legislation is expected to be in place by Autumn 2026.

Please see the Government response to the British Industrial Competitiveness Scheme: consultation on scheme eligibility and approach.

The announcement follows a £420 million boost for around 500 of the UK’s most energy-intensive businesses through the Supercharger, which took effect on 1 April and increased the discount on electricity network charges from 60% to 90% for sectors including steel, cement, glass and chemicals.

Background

• Exemptions on Renewables Obligation and Feed-in Tariff levies will apply from April 2027; Capacity Market exemptions from October 2027.
• Both large businesses and SMEs will be eligible, with support not prioritised by size. Businesses will receive exemptions on their bills applied site by site based on the share of electricity used to manufacture eligible products at that site.
• Sites using less than 25% eligible electricity will receive no exemption, 25% to less than 50% will receive a 50% exemption, and 50% or more will receive a 100% exemption.
• The full list of eligible SIC and HS codes will be available online on gov.uk on 16 April; businesses will need to be able to evidence both.
• The backdated payment will reflect the support businesses would have received had BICS been in operation from April 2026. Further details will be published separately.
• Full details of funding arrangements and bill impacts will be published in an Impact Assessment alongside the legislation in Autumn 2026.
• A scheme review will take place in 2030.
• Further information and the second consultation is available on gov.uk.

The press release issued by HM Treasury on 7 April 2026.

Entrepreneurs, start-ups and scale-ups are to receive a boost as a package to unlock private investment and double tax reliefs is brought into force.

• £100 million of new investment a year unlocked as entrepreneurship tax relief package comes into force.
• Package includes significant expansion of Enterprise Management Incentives scheme, Enterprise Investment Scheme, and Venture Capital Trusts.
• Wider support measures include the British Business Bank’s Five-Year Strategic Plan and three years of UK Listings Relief.

Entrepreneurs, start-ups and scale-ups are to receive a boost as a package to unlock private investment and double tax reliefs is brought into force.

The changes implemented today (6 April 2026) at the start of the new tax year include:

• Significantly expanding the number of companies eligible for the Enterprise Management Incentives (EMI) scheme, further supporting companies to attract and reward talent.
• Doubling the amount a company can raise through the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) to boost investment through additional tax relief through these schemes.

Chancellor Rachel Reeves introduced the package for entrepreneurs at Budget 2025, and together these changes are expected to support around £100 million of additional investment a year.

The EMI is a world-leading tax advantaged share scheme which allows eligible companies to offer their employees options to acquire tax-advantaged shares. EIS and VCT provide a range of tax reliefs for investors to encourage investment in higher-risk, early-stage companies that face the biggest challenges in accessing growth capital.

Chancellor of the Exchequer, Rachel Reeves, said:

I am backing business with a more active state that’s making big commitments to industry. I have taken steps to unlock £100 million a year for new investment in the businesses founded by our wealth creators so they can access the finance critical to their success.

The expansion to EMI will include quadrupling the gross assets test from £30 million to £120 million while both the employee limit, and company share option limit, will be doubled from 250 to 500, and £3 million to £6 million, respectively. This is expected to support around 1,800 of the highest growth scale-up companies in sectors including financial technology, life sciences, and AI over the next five years, allowing them to reward an estimated 70,000 employees.

The EIS and VCT lifetime company investment limits will double to £24 million, and the annual company investment limits will increase to £10 million. The gross assets test will increase to £30 million before share issue, and £35 million after.

The government is backing the UK’s most innovative companies. Knowledge intensive companies using EMI, EIS and VCTs benefit from higher asset and investment limits so they can continue to benefit from the schemes as they scale.

Income Tax relief available for those investing in VCTs will be reduced from 30% to 20%, to better balance the amount of upfront tax relief compared to EIS, and incentivising funds to seek out higher returns to ensure they are targeting the highest growth companies.

As part of the package, the government launched a Call for Evidence at Budget 2025 to gather evidence from founders, scaling companies and investors, on tax policy support for investment in high-growth UK companies. The consultation closed in February and the government will respond in due course.

The government is also supporting scale-ups to list in the UK as the Chancellor announced at the Budget, in an international first, UK Listing Relief – a three-year exemption from Stamp Duty Reserve Tax for companies listing in the UK. This will boost the trading volumes and share prices of UK scale-ups that take the next step and list in the UK.

Today’s package comes on top of the British Business Bank’s (BBB) new Five-Year Strategic Plan – a step‑change in how it will support small businesses, including scaling companies, using its increased permanent financial capacity of £25.6 billion.

The BBB will invest at least £5 billion in growth-stage funds and scale-up companies, and the government has also asked the BBB to explore using its existing financial guarantee capacity to support IP-backed lending.

Stakeholder responses:

Carolyn Dawson, CEO at Founders Forum Group, said:

The UK has always been a brilliant place to start a company and today’s reforms are a positive step towards making it just as compelling a place to scale. We’re particularly pleased to see the expansion of the EMI scheme: giving more employees a genuine stake in the companies they’re building is one of the most powerful ways to attract talent and reward the risk-takers who drive British innovation forward.

But keeping Britain’s best companies at home requires an ongoing commitment from all of us to back British success stories. When British innovation thrives, it translates directly into better jobs, higher wages, and a more resilient economy for everyone.

Eva Barboni, Executive Director of Enterprise Britain, said:

Britain needs more companies to make the leap from start-up to scale-up to global champion. These measures speak directly to two of the three pillars we set out as urgent priorities in our most recent report: access to capital and the ability to attract and retain talent. 

The changes to the EMI scheme are particularly important. Talent is the lifeblood of high-growth firms, and widening access to share ownership will help more British scale-ups attract and retain the people they need to compete globally. It will also help ensure that the benefits of those companies’ success are shared more widely.

Dom Hallas, Executive Director, Startup Coalition: 

Expanding EMI is a genuine win for the startup ecosystem – it gives high-growth companies far more room to compete for talent, which is ultimately what drives scaling success. The improvements to EIS will also help unlock more capital into early-stage businesses, particularly in knowledge-intensive sectors where the UK has real comparative advantage. We are optimistic that next year we will see further improvements to the tax landscape for founders, following the ongoing call for evidence.

Irene Graham OBE, CEO at ScaleUp Institute, said:

It is very good to see the commitments made in the Budget now being fully enacted. The changes now in effect for EIS / VCT / EMI make a tangible difference to businesses scaling across sectors and geographies as they progress their global growth ambitions. The long-term increased capacity of the British Business Bank and practical solutions that are now deployed such as the British Growth Partnership Fund, alongside Venture Link, are vital enablers, working with the private sector, to build and increase critical scaleup investment into our innovative scaling firms across the country. These packages, alongside the Government’s listing relief; further review of tax policy to support investment in high-growth UK companies and focus on how to evolve IP lending, are clear signals to encourage businesses to start, scale and stay in the UK.

Hannah Seal, Partner at Index Ventures, said:

The UK now has the most competitive stock option scheme of any large economy in the world. By doubling the headcount cap and quadrupling the asset threshold for EMI, the Government has created a world-leading scheme that surpasses its global peers. This is a game-changer for British entrepreneurship, allowing UK startups to compete with global giants for the best talent. We are grateful to the founders who joined us to advocate for this change and to the Government for taking decisive action to make the UK the best place for top talent.

Elaine Stroud, Chief Executive, Entrepreneurs Forum, said:

It’s encouraging to see real practical support which will help ambitious businesses to scale. Access to funding remains one of the biggest barriers to growth, and these measures should make it easier for entrepreneurs to unlock that next stage.

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.