Tag: Treasury

The press release issued by HM Treasury on 27 May 2026.

The Government has published a list of 125 everyday essentials – including fruit, oils and core pantry staples – targeted for tariff reductions, alongside uprating mileage rates to support working people with the cost of living.

• Government launches consultation on suspending tariffs on OVER 100 everyday essentials with the full list now available.
• This Government is the first in 15 years to uprate mileage rates for 3 million people who use their own vehicle for work, saving over £120 a year for a worker doing 6,000 business miles.
• The support is an additional saving for motorists following the Chancellor’s third extension to the fuel duty freeze which has put another £120 back into their pocket since last year.

Working people are set to benefit from further cost of living support, as the Government publishes a list of over 100 everyday essentials set to see targeted cuts to tariffs alongside uprating mileage rates for the first time in 15 years.

The consultation is seeking views from businesses and other stakeholders on the potential impacts of a second package. It covers a wide range of everyday essentials, from fresh fruit and vegetables, oil and baked goods, to chocolate, sauces, and soft drinks.

The list of 125 items include garlic, avocados, mangoes, nectarines, vegetable oil, olive oil and baked beans. This builds on the tariff suspension announced in April.

In parallel, we are also seeking views on whether suspension of tariffs on certain fertilisers could help farmers cope with the impact of rising fertiliser prices as a result of the conflict in the Middle East.

Chancellor of the Exchequer, Rachel Reeves, said:

The war in Iran isn’t our war, but one we will need to respond to, and my priority is keeping prices down for households and businesses.

That’s why we’re freezing fuel duty, increasing the mileage rate for the first time in 15 years and slashed VAT temporarily this Summer to help reduce the cost of days out.

This comes as carers, plumbers, builders and millions of other workers across the country who use their own vehicle on the job will have cheaper journeys after the Chancellor uprated mileage rates last week.

In the largest ever uprating of the rates a 10p per mile increase in tax‑free mileage rates for this tax year, backdated to April 2026, has been introduced to ease the cost of living for hardworking Britons.

Increasing the tax free per mile rates from 45p for the first 10,000 miles to 55p per mile will save around £120 for a worker doing 6,000 business miles. Up to two million employees and one million self-employed people will benefit.

This is in addition to savings drivers will make from the Chancellor’s further extension to the fuel duty freeze until the end of the year. That’s the third time Rachel Reeves has frozen fuel duty to support motorists, saving them £120 since last year.

Recognising how farmers and hauliers have been particularly exposed to high fuel prices, and their importance to UK supply chains, more relief has been announced.

For farmers and others who use red diesel and rebated biodiesel, the rate for those fuels has been cut by over a third – the lowest in over two decades. For hauliers, a road tax holiday has been put in place for a year from 1 July.

Transport Secretary Heidi Alexander said:

We are a government firmly on the side of drivers, and that means acting when hardworking people are being left out of pocket.

The people who use their own vehicle for work are the backbone of our country – the carers, the tradespeople and the public sector workers who keep services running. For too long, they have been expected to shoulder rising costs with support that simply has not kept up.

We’re doing all we can to ease everyday pressures on working people – that means real money back in their pockets and delivering for the people who keep Britain moving.

Andrea Egan, General Secretary, Unison said:

This simple measure will provide immediate help for countless frontline workers in public services. Particularly at a time when living costs are going through the roof once again.

People who need their own cars for work have been left thousands of pounds out of pocket for far too many years.

UNISON has campaigned hard for this long overdue change. It’s good to know the chancellor has listened to the concerns of staff penalised by frozen rates.

There’s still more to do to ensure no one is losing out and the union will continue to campaign for more over the coming months.” 

This follows a much wider package of support rolled out by the Chancellor last week branded ‘Great British Summer Savings’. It includes free bus travel for 5–15-year-olds in England, VAT slashed on children’s meals in restaurants, and VAT cut for all admissions to theatres, theme parks and other attractions.

This will help families enjoy the weekend treats, days out and staycations that make life enjoyable during the cost-of-living squeeze caused by the war in the Middle East while supporting the businesses that depend on summer footfall.

Cutting £150 on average of costs from household energy bills, freezing prescription charges and rail fares, and increasing the national minimum and living wages by hundreds of pounds are some of the actions taken at the Budget that are continuing to support families each month.

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

Nigel Topping, Tania Songini and Marianne Økland have been reappointed as Non-Executive Directors (NEDs) of the National Wealth Fund by the Financial Secretary to the Treasury.

The National Wealth Fund (NWF) is playing a central role in investing public money in the UK’s future, and over the next five years aims to mobilise over £100 billion of finance into the UK economy supporting the government’s growth mission.

Following the appointment of a new CEO, Olly Holbourn, and three new Non-Executive Directors last year, the NWF has, under this leadership, published its 5 year strategic plan (March 2026) and moved into its next phase of delivery.

The NWF Board, chaired by Chris Grigg, has been central to this progress. These reappointments provide continuity and stability to the Board, as the organisation builds on the recent changes and continues to deliver its objectives.

The NWF invests in a range of capital-intensive projects, businesses and assets, using debt, equity and guarantees, addressing market weaknesses and crowding in private investment to unlock growth and clean energy projects that otherwise would not have gone ahead. 

Financial Secretary to the Treasury, Lord Livermore said:

I am pleased to reappoint Nigel Topping, Tania Songini and Marianne Økland to the Board of the National Wealth Fund. Their combined expertise across industry, energy and financial markets will continue to support the NWF’s work delivering investment and growth across the UK.

Chair of the National Wealth Fund, Chris Grigg, said:

I welcome the reappointment of Nigel, Tania and Marianne. They have each made a strong contribution to the Board, and their experience and insight will continue to be valuable as the organisation builds on recent progress and delivers its strategic plan.

These reappointments have been made following a formal process and with the approval of the Financial Secretary to the Treasury and the Prime Minister. Reappointments are not automatic and are made on merit, in line with the Governance Code on Public Appointments.

Nigel Topping brings extensive experience across industry and climate leadership. He has held senior roles in UK manufacturing and industrial businesses and has played a leading role in driving the transition to a net zero carbon economy. Nigel served as the UK’s High-Level Climate Action Champion for COP26 and continues to hold a number of advisory and leadership roles in climate and energy. He brings strategic insight, a strong external network, and deep expertise in industrial decarbonisation to the NWF Board.

Tania Songini has significant experience in the energy sector, particularly in renewable power generation and distributed energy systems. She has held senior leadership roles within Siemens’ energy business across the UK and northwest Europe, and currently holds a number of non-executive positions across the energy sector. As Chair of the NWF Remuneration Committee, she has played a key role in aligning organisational objectives with shareholder priorities. Tania brings strong commercial, operational and sector expertise to the Board.

Marianne Økland brings deep banking and capital markets expertise, developed through senior roles at global financial institutions including JP Morgan and UBS. She has extensive experience in structuring and raising debt capital and in complex financial transactions. Marianne also brings strong technical knowledge of banking risk frameworks and economic capital, providing valuable challenge and oversight to the Board as the NWF’s portfolio grows in scale and complexity.

The NED’s current terms are due to expire in June 2026. Following the reappointment process, Nigel Topping will serve a further four-year term, Tania Songini a two-year term, and Marianne Økland a one-year term.

The press release issued by HM Treasury on 21 May 2026.

The Government has announced new funding packages for the ceramics and chemicals sectors, worth £120 million and £350 million respectively.

• Business Secretary announces new funding packages for chemicals and ceramics sectors, boosting stability and economic resilience.
• £350 million Critical Chemicals Resilience Fund will support strategically important producers and sites, strengthen critical supply chains and help support thousands of skilled jobs.
• Ceramics package worth £120 million will back energy efficiency, decarbonisation and long-term competitiveness in sector vital to UK manufacturing.

The Government has today (21 May) unveiled a major new funding package to revitalise British industry and shore up the UK’s long-term economic resilience.

Thousands of UK jobs across British industry are set to be secured thanks to £350m of Government support for strategically important chemicals producers and sites alongside a separate £120m scheme for the ceramics sector.

The funding – targeted at strategically important parts of the economy that keep vital everyday UK infrastructure running, support thousands of skilled jobs and protect Britain’s economic security – is designed to help firms stay competitive, modernise infrastructure, decarbonise, and transition their energy supplies from gas to electricity.

Business Secretary Peter Kyle said:

At a time of global uncertainty it’s never been more important to ensure Britain’s resilience and back the industries our country depends on, and this funding will support thousands of jobs and put businesses on a secure footing for the long term.

This is what a strategic state looks like: acting swiftly with targeted support in the national interest and giving certainty to the industries crucial to both our everyday lives and our economic future.

Chancellor of the Exchequer Rachel Reeves said:

The chemicals and ceramics industries underpin our economic resilience and support skilled jobs across the UK.

We have the right economic plan. It includes backing those workers, backing the communities that depend on them, and backing British industry for the long term.

The £350 million Critical Chemicals Resilience Fund will back the UK’s most strategically important chemical producers – the firms that supply the critical inputs relied on by sectors including food, energy, water and healthcare.

The fund has been designed to keep these key producers and sites competitive, put businesses on a more sustainable footing and strengthen supply chain resilience. It will be developed in partnership with industry representatives and independent experts.

The Government will continue to work hand-in-hand with industry to ensure broader policy delivers decarbonisation and not deindustrialisation. We are committed to tackling unfair foreign trade practices, and Ministers will urgently convene the chemicals industry to explore potential trade defence action.

The Government is also committed to driving down regulatory costs faced by the industry. We have already cut back the need for UK businesses to buy expensive and unnecessary data, cutting transition costs while maintaining health and environmental protections. We will work with the industry to identify where the UK can go further to reduce regulatory costs and remove duplicative procedures for businesses.

Chief Executive of the Chemical Industries Association Steve Elliott said:

The Government rightly included the chemical industry as a key foundational sector in its Industrial Strategy for the country. Today’s announcement of a £350m fund to be made available to chemical businesses underpinning our critical national infrastructure and wider resilience is therefore a very welcome first step in turning those words into action.

Much is needed – both in terms of policy and funding support – to address the industry’s energy, carbon reduction and broader regulatory costs – and the Government’s additional commitment to work in partnership with the industry to tackle those huge competitiveness challenges is also encouraging.

A separate package for the ceramics sector will include £120m of support to back capital investment in energy efficiency and decarbonisation projects, as well as provide operational support for successful applicants to the fund who require additional support to manage increased costs.

Ceramics are not only crucial for housebuilding and everyday items like plates, bowls and smartphone screens but strategic industries such as advanced manufacturing, defence and tech, backed by the UK’s Modern Industrial Strategy.

Their ability to operate at very high temperatures and resist corrosion make them vital for products from armour plates to plane engine coatings, and hip implants to space shuttle panels.

Support for the ceramics sector will be open to eligible UK manufacturers across subsectors including refractory products, clay building materials, household ceramics and technical ceramics.

The support will also help modernise an industry with proud UK heritage and a major local employer in communities from Stoke-on-Trent to Devon. The Government will work closely with the industry on delivery of the support, with further details to be confirmed shortly in the summer.

In a fresh call today, Ministers are also urging ceramics producers to engage with the Trade Remedies Authority, who can impose tariffs, to provide evidence where they believe existing trade remedy measures are not enough, or to support new investigations.

CEO of Ceramics UK Rob Flello said:

Ceramics UK is delighted by this landmark decision by the Government which recognises the fundamental role of our sector in the UK economy.

Ceramics are critical to the UK economy in the manufacture of vital products such as steel, glass and other high temperature products, as well as items that are used daily in homes and businesses across the UK.

Now, working with our members as the voice of the industry, Ceramics UK looks forward to working closely with Ministers and civil servants in designing and implementing the measures outlined in the Business Secretary’s statement of intent.

Our priority is to ensure that the scheme works for all members of Ceramics UK, from the smallest ceramics companies through to the largest organisations, creating a sustainable future for our industry.

Charlotte Brumpton-Childs, GMB National Secretary, said:

GMB has been calling for the Government to step up support for energy intensive industry.

This is a hugely welcome step in the right direction and will be reassurance to workers in our chemicals and ceramics industry that Government is finally listening.

These announcements, targeted at longer-term economic resilience, come alongside temporary help the government has announced to support people and businesses this year.

These steps entail a near term cost but HM Treasury has confirmed that the overall package will not increase borrowing in the medium term. All costings will be subject to certification in the next OBR forecast in the usual way.

Background:

• The Government will work with industry to design and shape the Critical Chemicals Resilience fund to deliver the greatest impact. The fund will be developed in collaboration with independent experts and industry, which we expect to start in summer 2026 and made available over a multi-year period, with further details to be set out shortly.
• Today’s announcement follows recent Government action to back the chemicals sector, including a £120 million package to protect vital chemical production at Grangemouth, and restarting production at the Ensus bioethanol plant in Teesside to protect CO2 supplies.
• Applications to the ceramics package are expected to open in the summer once final design work is complete.
• The strategic new support comes on top of the Government’s action to tackle industrial energy costs through the British Industrial Competitiveness Scheme (BICS) and the British Industry Supercharger, which will save thousands of UK businesses hundreds of millions of pounds on their energy costs.

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

Bill introduced to Parliament this week will unlock growth and investment across the country and boost protections for consumers.

• Wider access to credit unions for consumers, simplifying regulation and reducing the number of regulators are some of the changes being brought forward.
• This is part of the Government’s plan to build a stronger and fairer economy, building on good growth in the first quarter of this year.

British business will become more globally competitive, growth and investment will be unlocked across the country and greater protections will be put in place for consumers under new legislation that has been introduced to Parliament this week.

The Financial Services and Markets Bill will modernise how the sector is regulated, and enable it to grow and lend more to businesses. It will also make consumer protections fit for the digital age – all while maintaining high standards on regulation and oversight, supporting the UK’s position as a leading global financial centre.

The Bill will include a power, pending the outcome of an independent review, to ensure the Government can protect access to face-to-face banking where communities rely on it. And widening access to credit unions so more people can access safe and affordable finance are among the changes.

Simplifying regulation and reducing the number of regulators is among the changes being made to support businesses, so decisions are made quicker and their growth isn’t held back.  The Bill will also support lending and investment including by updating the statutory framework underpinning the ring-fencing regime.

This is part of the Government’s wider plan to build a stronger and fairer economy for all, building on good growth in the first quarter of this year.

Economic Secretary to the Treasury, Rachel Blake, said:

Our financial services sector is world-leading, creating jobs, boosting growth and firing up our economy in Leeds, Manchester, Edinburgh and London.

This Bill will unlock even more growth in the sector, making red tape less burdensome to business and boosting protections for consumers – part of our plan to build a stronger and fairer economy.

The Bill will ramp up protections and accessibility to finance for British consumers by:  

• Modernising consumer protections and redress arrangements. Consumers will be better protected when something goes wrong and terms and conditions will have to be worded in simpler terms so everyone can understand them. Reforms to the Financial Ombudsman Service will allow people to resolve disputes faster and with greater certainty. 
• Allowing credit unions to expand by improving the rules on who can become a member. This will allow credit unions to serve more people and communities, widening access to affordable finance and supporting the Government’s aim to double the size of the mutual and co-operative sector.  
• Ensuring access to in-person banking services for the future. Subject to an independent review, the Government will take the power to ensure communities retain their access to face-to-face banking where they need it. This is particularly important for rural communities and pensioners who are not online.

The financial services sector will also be supported to innovate and grow by:

• Simplifying regulation and reducing the number of regulators. Responsibilities of the Payment Systems Regulator will be absorbed by the Financial Conduct Authority. This means firms will have fewer overlapping regulators to deal with and will see faster decision making, allowing them to grow faster.
• Ensuring that the administrative burden on firms is proportionate while keeping important consumer and market protections. This includes reducing the overall burden of the Senior Managers and Certification Regime – the framework that holds senior leaders in financial firms personally accountable – by 50 per cent. This will free up firms to focus on serving customers and invest in growth, rather than dealing with overly burdensome compliance processes.  
• Supporting lending and investment by updating the statutory framework underpinning the ring-fencing regime. This regime requires major banks to separate their UK retail banking services from investment banking activities. The reforms will unlock more finance for UK businesses, especially smaller businesses who will be able to access finance more easily.

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

Chancellor announces further reforms on judicial review of major infrastructure projects.

The Chancellor is expected to announce sweeping reforms that will give Parliament the authority to approve critical energy schemes and better protect infrastructure projects from judicial review.

The proposed changes – on which a policy note is published today – are intended to reinforce the UK’s energy security, drive down consumer bills and support the government’s central mission of economic growth.

The headline proposal would allow Parliament to designate and approve the most important clean energy projects as being of ‘Critical National Importance’ (CNI), reducing the exposure from judicial review on all but human rights grounds. This would help deliver the government’s commitment to accelerate new infrastructure development and drive growth, including much-needed projects like new power stations and offshore wind farms.

For all other nationally significant infrastructure – including transport and water projects – the government will introduce a fixed legal challenge window, at the end of which the planning consent could be updated to address any legitimate issues.

This would reduce the potential grounds for judicial review – and where any continue to be pressed, courts would be able to make use of existing reforms to deny permission where it was clear the claim was without merit. The law would also be changed to require the courts to refuse permission for a judicial review to proceed on any issues not brought up during the consenting period or in the challenge window – meaning that developers can then proceed with full confidence that no successive spurious challenges can be raised at a later stage.

Taken together the reforms are set to build on protections already passed into law through the Planning and Infrastructure Act, as the government seeks to end the practice of serial meritless legal challenges clogging up the courts. Of 167 Development Consent Order decisions made since 2008, just six were quashed following a challenge – with many more failed processes costing developers, taxpayers and the economy billions in delays and wasted time.

The new CNI route would apply exclusively to clean energy projects, reflecting the national urgency of the UK’s need to get off the fossil fuel rollercoaster. All other major infrastructure projects would benefit from the fixed-window route.

The government is also expected to allow promoters of smaller energy projects to apply directly to the Planning Inspectorate, rather than having to go through local councils. This will support faster decision-making on important generation and transmission projects that all contribute to our country’s energy resilience.

A Treasury spokesperson said:

For too long, vital infrastructure delivery has been delayed by judicial reviews of projects the country needs. The Chancellor won’t stand for it any longer and is bringing forward bold changes to support delivery.

She is clear that Parliament must take back control – to get Britain building the power plants, wind farms and grid connections that will bring bills down, strengthen our energy security, and deliver growth in every part of our country.

Lord Banner KC, author of the Independent review into legal challenges against Nationally Significant Infrastructure Projects said:

I was pleased to see the Prime Minister act on the recommendations of my review into legal challenges of nationally significant infrastructure projects last year, and these reforms are already bearing fruit. It was however clear from the many people I spoke to in the course of that work and since that there is a strong case for going further if we are to meet the scale of our infrastructure challenge.

These proposals, which draw on the democratic mandate of the legislature, are a further bold step, and I look forward to supporting their development ahead of the government bringing forward legislation.

Robbie Owen, Partner, Pinsent Masons said:

This initiative by the government is welcomed and chimes with the case made out during the passage of the Planning and Infrastructure Bill last year that Parliament should have a role in relation to the consenting of critical national infrastructure projects. I look forward to seeing the detail but giving Parliament the authority to approve critical energy schemes and better protecting infrastructure projects from judicial review is essential if we are to deliver these much-needed projects within the timescale required.

John Myers, Director, YIMBY Alliance said:

Britain can’t afford to keep losing years to legal challenges that delay clean energy and public transport for working people. These reforms should improve democratic participation and keep the courts open to genuine concerns while stopping spurious suits from driving up costs for the families who need this infrastructure built.

Catherine Howard, Partner, Herbert Smith Freehills Kramer said:

We’re already seeing results from the Government’s judicial reviews reforms. The dismissal of the Stonestreet Green Solar judicial review in just 4 months based on a court ruling of ‘totally without merit’, and yesterday’s dismissal of the Luton airport judicial review after it missed the new shorter timescales for appeals, have given a real boost to developer confidence. I applaud the Government’s action and ambition on judicial review.

The ability for developers to choose to make applications direct to the Planning Inspectorate is greatly to be welcomed. We know that some councils are consistently making decisions which fail to apply Government policy, however clearly framed. The delay and cost this causes benefits no one. There is already a precedent for direct applications and swift and efficient decision-making by PINS where councils are in special measures. Expanding this right makes sense given the challenges and opportunities in the current political climate.

David Lawrence, Co-founder, Centre for British Progress said:

Judicial reviews to Nationally Significant Infrastructure Projects have driven up the cost of building Britain’s energy infrastructure and delayed vital clean energy projects. The Chancellor’s reforms tackle these rising costs, protecting consumers from higher bills and accelerating the transition to British-made clean energy.

Dhara Vyas, Chief Executive, Energy UK, said:

Planning reform for clean energy is critical and still needs to strike a balance between a process that allows proper scrutiny of applications without unduly restricting the country’s ability to build the infrastructure necessary to strengthen our energy security, boost our economy, and help stop energy bills being at the mercy of global events. 

We warmly welcome today’s announcement that builds on earlier pledges of reform in relation to the National Planning Policy Framework, the Planning and Infrastructure Act, and the Fingleton Review. Judicial Review will still have a vital role to play but in its intended purpose of ensuring the right legal process has been followed – rather than to re-examine the whole application again. These reforms will ensure fairness remains within the planning process while enabling the much-needed roll-out of clean energy infrastructure to be accelerated.

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More information

Today’s announcement builds on a series of decisive steps the Government has already taken to reduce the scope for meritless legal challenges to delay critical infrastructure projects:

The Planning and Infrastructure Act reduced the number of attempts a claimant can make to bring a legal challenge from three to one for meritless claims.

Amendments to the Civil Procedure Rules, which came into effect in October 2025, tightened procedural requirements for nationally significant infrastructure project (NSIP) cases.

Further procedural reforms announced in October 2025 set clear target timescales for NSIP cases in the High Court and Court of Appeal, with cases heard by judges with appropriate planning expertise.

In response to the Fingleton Review, the Government has also committed to two further areas of reform: developing a government-backed indemnification scheme to give developers greater financial certainty when facing legal challenge; and extending NSIP judicial review reforms to other major planning regimes, including those under the Town and Country Planning Act.

The press release issued by the Treasury on 20 May 2026.

The Government has announced a support package for motorists.

• Costs lower for millions of drivers as government holds pump prices down, extending the 5p fuel duty cut until the end of year  
• Hauliers get a 12-month road tax holiday saving up to £912 per vehicle,  red diesel slashed to its lowest rate in over 20 years until the end of the year 
• Chancellor keeps taxes down for drivers after strong growth at the start of the year, showing government has right economic plan.  

Britain’s motorists and businesses will get help with rising prices at the pumps with a targeted package to keep taxes down and support people with the impact of war in Iran. 

The Government  has today (May 20) announced, the 5p cut on fuel duty will be extended for the rest of the year. 

In total, by the end of this year the cut will have saved the average driver £120 since 2025. This ensures fuel duty on petrol and diesel remains at its lowest rate for over 16 years. 

The conflict has also pushed up costs for hauliers who keep Britain’s shelves stocked and its economy moving. The Chancellor is giving them a 12-month road tax holiday – meaning they will pay £1 at renewal, saving £600 for a typical heavy lorry and £912 for the biggest vehicles on the road. 

Farmers, rail freight, and other red diesel users will also see their fuel duty cut by over a third until the end of the year. This is the lowest rate in over 20 years, helping to keep the cost of doing business down at a difficult time when red diesel prices are around 50% more than their pre-crisis levels. 

Since the start of the Iran conflict, the government has been clear that it will not make kneejerk decisions that could impact on financial stability. The package of support brought forward is timely and targeted.  

Prime Minister Keir Starmer said:  

I know many are feeling the pressure of energy and fuel costs, and are worried about how the conflict in Iran will affect their finances. Because when global events drive up prices, it’s working people who feel it first. 

That’s why this government is stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people.

Chancellor of the Exchequer Rachel Reeves said: 

I’m keeping taxes down for drivers and businesses – putting money in the pockets of millions of workers and cutting costs for farmers and hauliers.  

The war in Iran is pushing up fuel prices here at home but after strong growth at the beginning of the year, I am stepping in to protect people at the pump 

By protecting households and businesses we are building a stronger and more secure economy for Britain. That is the right economic plan.

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

Consumer watchdogs to gain new investigatory powers.

• Chancellor introduces tougher measures to protect people from unjustified price hikes
• Consumer watchdogs to gain new rapid investigatory powers to target firms taking advantage of crises to unfairly raise costs
• Regulators to highlight price gouging firms to customers

Working people will be protected from unfair price rises as the Chancellor clamps down on firms who rip off their customers.  

A new framework will give the Competition & Markets Authority (CMA) and other regulators stronger, more targeted powers to act quickly to tackle excessive and unfair price rises. 

Price gouging is when a company puts prices up to an unfair and unjustifiably high level during a crisis. When a major supply shock hits, these powers will help regulators spot trouble early, move faster, and protect consumers.

Where regulators identify concerning practices, they could ‘name and shame’ by publicly sharing information on how individual firms have changed their margins in response to an economic shock, and the reasons behind this. 

The Chancellor has today confirmed the Government will bring forward these changes to strengthen the current system.

Chancellor of the Exchequer Rachel Reeves said: 

When global events drive up costs, working families feel it first. I will not tolerate anyone exploiting a crisis to make a quick buck off the back of hard working people.

We are backing families, backing fairness, and building a stronger and more resilient economy through our long-term economic plan.”   

The Chancellor will also make it clear she won’t hesitate to go further if needed. Should the CMA or other regulators observe price gouging in an emergency and conclude that they needed further powers to tackle it to support consumers rapidly, the Government stands ready to act, including with highly targeted enforcement powers to give them the ability to direct firms to stop exploitative pricing practices and where necessary, impose penalties if needed.

The government will bring regulators together regularly through a new working group under the Regulators Council to share intelligence and monitor the response to the conflict. That means faster detection, sharper scrutiny and stronger protection for consumers.   

These actions build on the existing strong powers the CMA and other regulators have to deal with anti-competitive behaviour. The CMA has already stepped up its work on road fuel and moved swiftly to launch a market study into heating oil supplies.  The CMA is examining concerns from consumers 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 May 2026.

The government has launched a consultation on the details of the new High Value Council Tax Surcharge, to make the system fairer for households.

• Government launches next step in reforms that will tackle historic unfairness and see high value properties pay their fair share  
• New surcharge on the top 1% of most valuable properties will put money into communities and local services across the country.  
• First announced at Budget 2025, the reforms will rebalance the system which has been unchanged since 1992.  

The government has launched a consultation today (May 19) on the details of the new High Value Council Tax Surcharge to make the system fairer for households across the country.

The move, announced at Budget 2025, will ensure those with the 1% most valuable properties pay their fair share – helping to fund vital local government services and implementing a significant reform to improve fairness within England’s property tax system.

Council tax has remained untouched for decades and has not been readjusted as property values increase. That means that under this flawed system, a multimillion pound mansion could be paying less council tax than a small family home.

Today the government is setting out the details for the new charge on owners of residential property in England worth £2 million and above to address this unfairness. The consultation also outlines how properties will be identified, valued and placed in a band for the surcharge.

Dan Tomlinson, Exchequer Secretary to the Treasury, said:

“A £10 million mansion in Mayfair should not be paying less council tax than an ordinary family home in Darlington or Blackpool.

“This change tackles historic unfairness, so that those with the most valuable properties pay their fair share, helping to rebalance the system and putting money back into communities up and down the country.”

Revaluations of properties worth more than £2 million will be carried out every five years, with the next revaluation being held in 2033, ensuring that the tax remains fair and up to date with house prices.      

The consultation also sets out proposals for taxpayers to review the valuation of their property. The charge, which will affect less than 1% of properties, will come in from April 2028 and is expected to raise around £430 million per year to support funding for local government services.

Further information

The consultation launched today will run for eight weeks and taxpayers, local government, tax experts, legal professionals and those in the property industry are encouraged to respond.

The consultation will specifically seek views on:  

·       the design of the tax surcharge

·       proposed scope of the tax surcharge

·       a deferral mechanism, to support those who cannot pay

·       the billing process

·       the proposed appeals process

·       administration and enforcement mechanisms

The press release issued by HM Treasury on 18 May 2026.

British businesses stand to benefit from billions in fresh financing being unlocked through reforms to the bank ring-fencing regime.

• Reforms to ring‑fencing to create a more agile and proportionate regime that reduces duplication within banks and removes barriers to lending and investment
• Proposed New Growth Allowance and wider product range could enable banks to provide up to £80 billion in additional support to businesses, channelling more financing into UK businesses, jobs and the economy
• Key protections remain unchanged – safeguarding depositors and ensuring the UK banking system stays resilient and secure

British businesses stand to benefit from billions in fresh financing being unlocked through reforms to the bank ring-fencing regime.

The reforms will create a more agile and proportionate framework for ring‑fencing that makes it easier for banks to operate efficiently without weakening protections for customers.

At the heart of the changes is a new Growth Allowance, which will let major banks use a limited portion of their balance sheets more flexibly, potentially unlocking up to £80 billion of additional financing for UK businesses – helping firms invest, expand and create jobs across the country.

The reforms will also give the Prudential Regulation Authority (PRA) more flexibility to update and tailor the rules over time. Instead of relying on rigid legislation, more of the detail will sit in regulatory rules, allowing the PRA to adjust them more quickly as the financial system evolves. This will mean the PRA will be able to remove outdated requirements or adapt rules to reflect wider banking reforms.

Boosting growth across the economy is a top priority of the reforms, with the Treasury seeking to modernise and streamline the regime while removing unnecessary barriers to lending and investment in the UK.

The package, designed in close collaboration with the Bank of England, will continue to provide strong protections for depositors and ensure stability of the UK’s banking system.

Set out in a new report – Safeguarding Stability, Enabling Growth – the reforms will be delivered through the forthcoming Enhancing Financial Services Bill and subsequent legislation and form a central plank of the Financial Services Growth and Competitiveness Strategy.

At the heart of the changes is a clear objective for government: to ensure more financing can flow into UK businesses more easily and do so more easily: all while supporting innovation, expansion and higher living standards.

Economic Secretary to the Treasury and City Minister, Rachel Blake said:

Where financial systems are inefficient, we will change them. These reforms will ensure more financing flows into UK businesses, and we can support growth and create jobs across the country.

This will unlock finance for growth while keeping the UK banking system resilient, competitive and fit for the future.

Alex Depledge, Entrepreneurship Advisor to the Chancellor, said:

This is exactly the kind of pro‑growth reform the UK needs. Too often, our fastest‑growing firms hit a wall of unnecessary friction just as they start to scale. These changes will unlock more of the capital founders need to keep building in the UK, while maintaining the financial stability that underpins investor confidence. 

This is about backing ambition, cutting friction, and ensuring our banks can power the next generation of great British businesses to start, scale and stay here.” 

Ring‑fencing is a key part of the UK’s post‑financial crisis banking reforms, requiring the largest UK banks to separate their core retail services – such as retail and SME deposits and lending – from riskier investment and trading activities. This helps to protect depositors, maintain access to banking services, and support financial stability if shocks occur.

Through the reforms banks will also be able to offer a broader range of products and services to support firms as they grow, including better hedging tools and greater access to programmes delivered through public financial institutions such as the British Business Bank and National Wealth Fund.

Maintaining protections and stability for consumers is essential to the reforms – ring‑fenced banks will continue to operate independently from investment banking activities, protecting retail deposits from volatility in global financial markets. The government will consult on the detail of the reforms to ensure protections are maintained while maximising the benefits for growth.

The government will also ensure the regime remains proportionate over time, including regular reviews of key thresholds and reporting requirements.

The press release issued by HM Treasury on 18 May 2026.

The government will modernise the Consumer Credit Act for the first time in over 50 years, giving consumers clearer information and firms the flexibility to innovate.

• Landmark legislation, first passed over 50 years ago, modernised to reflect how people use credit today.
• Changes will mean consumers will receive clearer information when using credit cards, loans and overdrafts – helping them make smarter financial decisions.
• Reforms support innovation and growth, giving firms the freedom to develop new products while maintaining strong consumer protections.

Consumers who take out loans, credit cards or overdrafts are expected to benefit from clearer information about costs and key terms, helping them understand their options and make informed financial decisions – thanks to major reforms announced today (18 May).

While some updates have been made over the years to the Consumer Credit Act – first passed in 1974 – many of the core rules have not kept pace with the digital financial products and services that millions of people use every day.

Today’s announcement will be the first step in moving many of the CCA’s detailed, prescriptive requirements out of the legislation and into the Financial Conduct Authority’s (FCA) rulebook – making them easier to update as technology evolves.

The new regulations will be informed by consumer testing and kept under review as products and technology changes. This should mean that people using credit cards, loans, overdrafts or other borrowing products will benefit from clearer and better-timed information to help them understand their options and manage their finances with confidence.

The reforms, part of the Financial Services and Markets Bill introduced in the King’s Speech, will make information about credit products clearer, ensuring it genuinely helps people make informed decisions and supports vulnerable consumers who may find jargon more challenging.

Economic Secretary to the Treasury and City Minister, Rachel Blake said:

People need to be able to make informed choices when applying for and using credit.

The Consumer Credit Act was written for a different era – we are creating a flexible regime fit for the digital age.

Robust consumer protections in the CCA will be maintained to the highest standards and the FCA has a wide range of enforcement powers, including the ability to fine firms that break the rules.

Firms will benefit from a more flexible framework that allows them to develop new products and use new technology to serve their customers better. Rather than working around rules designed for a world before smartphones and digital banking, businesses will operate under a regime that can adapt as the financial sector continues to innovate.

Peter Tutton, Director of Policy, Research and Public Affairs, StepChange Debt Charity, said:

Our thirty years of experience providing free debt advice has shown us just how important clear and usable information about credit agreements is for consumers. What’s more, for those struggling with managing credit repayments, it is vital that consumers can make informed choices about products and know how to seek help when it is required.

Whilst the Consumer Credit Act contains important and much needed consumer protections, new steps to move communication requirements into FCA rules allows flexibility and a test and learn approach that will offer better outcomes to consumers and reduce harm around debt.

Chris Woolard CBE, Chair of The Woolard Review and Partner at EY, commented:

Modernisation of the Consumer Credit Act to support better outcomes for both consumers and firms was a key recommendation of The Woolard Review of the unsecured credit market. These first steps, to enable clearer information and new products, are therefore welcome ones.

Eric Leenders, Managing Director of Personal Finance, UK Finance:

UK Finance welcomes the government’s plans to modernise the Consumer Credit Act. Ambitious, forward-looking changes are needed to give consumers clearer, more accessible information, and lenders flexibility to provide new and innovative products. These reforms are an important step towards a simpler, future‑proofed regime with strong consumer protections in an increasingly digital world

NOTES TO EDITORS:

• The Government today published a policy statement setting out the final approach to CCA reform, alongside its response to the Phase 1 CCA reform consultation. Both documents are available on GOV.UK