Tag: Treasury

The press release issued by HM Treasury on 6 January 2024.

27 million people across the UK will benefit from a yearly tax cut worth hundreds of pounds from today, meaning a household with two average earners will save nearly £1,000 per year.

• 27 million people to get tax cut from today as the main rate of employee National Insurance will be cut by two percentage points, from 12% to 10%.
• Change in gear for government, cutting taxes for hard working people so they have more money in their pocket.
• Online tool launched to help workers estimate their savings.

The main rate of National Insurance has been cut by 2p from 12% to 10% today (Saturday 6 January 2024). This reduces National Insurance by more than 15%, saving £450 this year for the average salaried worker on £35,400.

Millions of people working different jobs across hundreds of industries will now be better off. An average full-time nurse will save £520, a typical junior doctor £750 and an average teacher £630.

In the past year, inflation has halved; the economy has recovered more quickly from the pandemic than first thought; and debt is on track to fall. With a renewed focus on the long-term decisions to strengthen the economy, the government is changing gear and cutting taxes for hard working people, giving them the opportunity to build a wealthier, more secure life for themselves and their families.

Prime Minister Rishi Sunak said:

“We have made tough decisions on the economy, supporting people through global shocks such as the pandemic and Putin’s illegal invasion of Ukraine. It is because of the tough decisions this government has taken that today we are able to cut taxes for 27 million people across the UK.

“Today’s tax cuts will directly reward hard working people, putting £450 back in the pocket of the average worker and helping them make ends meet.”

Chancellor of the Exchequer Jeremy Hunt said:

“With inflation halved, we’ve turned a corner and are cutting taxes – starting with today’s record cut to National Insurance worth nearly £1,000 for a household.

“From nurses and brickies, to cleaners and butchers, 27 million hard-working Brits will have a little more cash in their pockets.”

The cut means that for those on average salaries, personal taxes would be lower in the UK than every other G7 country, based on the most recent OECD data. The UK also has the most generous starting allowances for income tax and social security contributions in the G7.

To mark the tax cut, HMRC have launched an online tool to help people understand how much they could save in National Insurance this year.

The tool will use salary information to give employees personalised estimates of how much they could save because of the government’s changes, and will be hosted on the government’s cost of living support website on GOV.UK.

The last major cut to the current personal tax system of today’s magnitude was when the National Insurance personal allowance increased from £9,880 to £12,570 in July 2022. This was the largest ever cut to a personal tax starting threshold, allowing working people to hold on to an extra £2,690 free from tax whilst taking 2.2 million people out of paying tax altogether.

Today’s tax cut combined with above-inflation increases to tax thresholds since 2010 means that the average earner will pay over £1,000 less in personal taxes than they otherwise would have done.

At the Autumn Statement the Chancellor Jeremy Hunt announced the biggest package of tax cuts to be implemented since the 1980s. In addition to today’s action, the Chancellor also announced a National Insurance cut for 2 million self-employed people, which will take effect on 6 April 2024 and is worth £350 for the average self-employed person on £28,200. He also announced the biggest ever increase to the National Living Wage, effectively cut corporation tax by more than £55 billion as he made full expensing permanent to help businesses invest for less, froze alcohol duty for six months and extended cuts to business rates relief for the high street.

Today’s historic National Insurance cut takes effect following the government stepping in to support households during the Covid-19 pandemic and throughout Putin’s barbaric war in Ukraine. The government took the decision to manage the public finances responsibly by not saddling future generations to help pay down debt.

Further information

• Use HMRC’s new online tool. It will be online at 05:00 on Saturday 6 January 2024.
• Visit the government’s cost of living support website
• National Insurance factsheet
• Latest OECD tax on wages data
• Visit the Treasury’s Flickr to view photos from the Chancellor’s visit to Openreach, Crawley to mark the NICs cut
• Today’s NICs cut has reduced the 32% combined tax rate for employees (income tax + national insurance) paying the basic rate of tax to 30% – the lowest since the 1980s.
• From April 2024, a full time National Living Wage worker’s take home pay will be 30% greater in real terms than it was in 2010, due to successive increases in the National Living Wage and changes to personal tax rates and thresholds.
• The OBR say that, by 2028-29 this tax cut will increase the number of people in employment by 28,000 alongside a substantial economic benefit from those in work increasing their hours which the OBR forecast will be equivalent to 79,000 on a full-time equivalent basis. Overall, the OBR say that by 2028-29 this measure will increase the number of hours worked by new and existing employees by 0.3%, or 94,000 in full-time equivalent terms. This shows the government is making work pay.

Who does this help?

• A senior nurse with 5 years of experience on £42,618 will receive an annual gain of £600.
• An average full-time nurse on £38,900 will receive an annual gain of over £520.
• An average police officer on £44,300 will receive an annual gain of over £630.
• A typical junior doctor on £63,000 will receive an annual gain of over £750.
• A cleaner working night shifts on £21,000 will receive a gain of £170.
• A typical self-employed plumber on £34,400 will receive an annual gain of £410.
• An average teacher on £44,300 will receive an annual gain of over £630
• A hard-working family with 2 earners on the average earnings of £35,404 will be £900 better off.

The press release issued by HM Treasury on 2 January 2024.

Self Assessment customers have less than one month to file their tax returns.

With less than a month to go to the Self Assessment deadline, HM Revenue and Customs (HMRC) is urging nearly 5.7 million customers to file their tax return for the 2022 to 2023 tax year.

HMRC data shows almost 6.5 million customers have already beaten the Self Assessment clock by filing their tax return including 49,317 customers who used the New Year holiday to get a head start on their tax obligations:

• 25,593 customers filed their tax return on New Years Eve, with the most popular time being between 12:00 and 12:59, when 2,677 customers filed
• 127 customers saw in the New Year by filing their tax return between 00:00 and 00:59 on 1 January
• 23,724 customers filed on New Year’s Day, with the most filing between 15:00 and 15:59, when 2,354 customers filed

The deadline to file a tax return for the 2022 to 2023 tax year and pay any tax owed is 31 January 2024. Customers can submit their tax returns and pay any tax owed online at GOV.UK.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

The clock is ticking for those customers yet to file their tax return. Don’t put it off, kick start the new year by sorting your Self Assessment. Go to GOV.UK and search ‘Self Assessment’ to get started start today.

HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return.

The quickest and easiest way customers can pay their tax bill is via HMRC’s app which is free and secure. Information about the different ways to pay can be found on GOV.UK.

Customers who are unable to pay in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay for those who owe less than £30,000. Customers can arrange this themselves online. Go to GOV.UK and search “HMRC payment plan” for more information.

HMRC will consider a customer’s reasons for not being able to meet the deadline. Those who provide HMRC with a reasonable excuse may avoid a penalty. The penalties for late tax returns are:

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

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

The press release issued by HM Treasury on 1 January 2024.

British film, TV and video game producers will benefit from new, more generous tax credits that start today (1 January 2024).

• New and improved tax credit system for film, TV and video game production companies starts from today (1 January 2024)
• An extra £42,500 in relief for children’s TV, animated TV and animated film production
• £5,000 in relief for high-end TV, film or video game production

To maximise the potential of the UK’s cutting-edge production industry and help incubate unique British talent, the government’s Audio-Visual Expenditure Credit and the Video Games Expenditure Credit replace the previous tax reliefs for film, TV and video games.

All companies will receive more tax relief than they did under the previous system, greater flexibility over production decisions and greater clarity about the amount of credit companies can expect to receive.

Nigel Huddleston, Financial Secretary to the Treasury, said:

We are backing the makers of the next Barbie, Happy Valley and Grand Theft Auto with this new, more generous, tax credit system for British production talent.

The UK is a world leader in creativity, and we want to ensure that continues well into the future by making it easier for British film, TV and video games to thrive.

Under the new system, a children’s TV production, animated TV production or film with £1 million of qualifying expenditure will receive an additional £42,500 in relief. A high-end TV production, film production or video game will receive £5,000 in relief. To ensure fairness, the uplift in relief for animation will be extended to include animated films as well as TV programmes.

The credits will be calculated directly from a production or game’s qualifying expenditure, instead of being an adjustment to the company’s taxable profit.

Animation and children’s TV productions will be eligible for a higher credit rate of 39%, a rate increase of 4.25% under the previous reliefs. The 34% credit rate for film, high end TV and video games is roughly equivalent to a rate increase of 0.5% under the previous tax reliefs.

The new system applies to the whole of the UK. The government has listened to feedback from industry that companies will need sufficient time to adapt to the new expenditure credits. For this reason, productions and games in development on 1 April 2025 may continue to use the previous tax reliefs until they end on until 1 April 2027.

The move to reform tax relief for entertainment productions and video games was announced at the Spring Budget in March 2023. The system implemented today was developed hand in glove with the UK entertainment industry, with consultations on both the policy itself and the draft legislation. It is being legislated as part of the Finance Bill 2023-24.

The UK’s creative industry is already worth £126bn and the UK has the largest video game employee base in Europe, at nearly 21,000 by the last estimate.

Today’s new tax credit system is the latest move by UK Government in support for British creative industries. The Chancellor also announced that full-expensing will be made permanent in 2023’s Autumn Statement, helping creative businesses invest for the less by saving them 25p in every £1 they spend on qualifying equipment and machinery.

At Spring Budget 2023, the Chancellor also extended the rates of relief for theatre, orchestra and museums for two additional years to April 2025.

In September last year, coinciding with a visit by the Chancellor Jeremy Hunt to Warner Bros. Studios in Los Angeles, it was announced that the production giant would expand their studio in Leavesden, Hertfordshire, in 2024. The move is expected to create 4,000 new jobs in the UK and contribute more than £200m to the UK economy.

Further information

• Qualifying expenditure will remain broadly unchanged. For the Video Games Expenditure Credit, to align the conditions for video games with film and TV, at least 10% of expenditure has to be ‘used or consumed’ in the UK.
• At Spring Budget 2023, the Chancellor also extended the higher 45% (for non-touring productions) and 50% (for touring productions) rates of relief for theatre, orchestra and museums for two additional years to April 2025.

The press release issued by HM Treasury on 1 January 2024.

Women will save up to £2 on a £12 pair of period pants as the government scraps VAT on the underwear.

• Women to save up to £2 on period pants worth £12 as government scraps VAT today.
• Retailers, including M&S, Primark and Tesco, have committed to pass on the savings, worth 16%.
• Move follows scrapping of tampon tax in 2021, removing VAT from sanitary products, following the UK’s decision to leave the EU.

From today, 1 January 2024, women will save up to £2 on a £12 pair of period pants – up to 16% – as the government scraps VAT on the underwear.

The pledge to scrap the tax was made by the Chancellor Jeremy Hunt at the Autumn Statement 2023 and follows the end of the tampon tax in January 2021.

Around 80 MPs, charities and retailers called on the government to scrap the VAT in August 2023.

With Marks & Spencer spearheading the campaign, other retailers including Primark and Tesco have committed to pass the tax cut straight to the consumer.

Financial Secretary to the Treasury, Nigel Huddleston, said:

This is a victory for women across the UK and for the campaigners who’ve helped raise awareness of the growing importance of period pants.

It’s only right that women and girls can find more affordable options for what has become an essential and environmentally friendly product.

Since reforming the ‘tampon tax’, the market for period underwear has expanded and they are now a mainstream choice for many women. The scrapping of the current VAT will ensure that period underwear is treated the same as traditional period products.

Having left the European Union, the UK is no longer legally bound by EU laws which saw sanitary products subject to five different rates of VAT between 1973 and 2021.

The move comes after the ‘Say Pants to the Tax’ campaign, led by retailers such as Marks & Spencer, women’s groups and environmentalists, called to scrap the tax.

Victoria McKenzie-Gould, Corporate Affairs Director at Marks & Spencer, said:

Paying tax on period pants was a bum deal for women everywhere so we’re thrilled that the Treasury has done the right thing by axing the tax and levelling the playing field on period products for good.

Nearly 25% of women cite cost as a barrier to using period pants so we know the new legislation that comes into effect from today will make a big difference to women’s budgets across the UK.

A big thank you to WUKA, the tens of thousands of individuals, politicians, brand and retailers, who threw their weight behind our campaign – Say Pants to the Tax – and of course a big thank you to the Chancellor and HM Treasury team who made the change we were campaigning for a reality.

Women with sensory issues who find conventional period products difficult to use will also benefit from period pants becoming more affordable.

The savings for women are subject to the VAT cut being passed on, with the army of retailers behind the campaign pledging themselves to play their part to pass on the 20% VAT cut.

Laura Coryton, tampon tax campaigner and founder of social enterprise Sex Ed Matters, said:

Ending the tax on period underwear will make a huge difference, particularly given skyrocketing levels of period poverty across the UK. It will also help to tackle the stigma associated with periods, which stops at least 10% of girls going to school every month.

Now, it is important for retailers to pass savings on to consumers, not only in relation to period underwear, but all period products.

Further information

• Women’s Sanitary Products have been subject to five different tax rates since 1973. The UK first introduced VAT in 1973 with a standard rate of 10% applied to sanitary products. In 1974, standard VAT was cut to 8%, before rising to 15% in 1979 and 17.5% in 1991. The government moved sanitary products to a reduced rate of 5% in January 2001 following a campaign and debates in Parliament.
• Read the 50 retailers’ letter to the Financial Secretary to the Treasury from August 2023.

The press release issued by HM Treasury on 27 December 2023.

Thousands of customers filed their Self Assessment tax return on Christmas Day.

There were 4,757 customers who filed their Self Assessment tax return on Christmas Day, HM Revenue and Customs (HMRC) has revealed.

A day traditionally dominated by eating, drinking, and exchanging gifts saw a perhaps surprising number of customers also find time to go online and complete the essential job of filing their tax return for the 2022 to 2023 tax year, ahead of the 31 January 2024 deadline.

Over the three-day festive period, 25,769 customers submitted their tax return, an increase compared to the same period last year, with 8,876 filing on Christmas Eve and 12,136 on Boxing Day. The peak time was between 12:00 and 12:59 on Boxing Day, when 1,121 returns were received by HMRC.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

Our Christmas Day filers proved that there is no time like the present to get started on Self Assessment, and with our online tool it can be a simple task that’s easy to fit around other festive commitments. There’s no need to delay, getting it done ahead of the 31 January deadline means less stress and longer to work out payment options. Get started today by searching ‘Self Assessment’ on GOV.UK.

Customers can submit their tax return online, but they do not have to pay until 31 January 2024. However, those who file before 30 December may have the option of paying any tax owed through their PAYE tax code.

HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return.

They can pay through the free and secure HMRC app. For a full list of ways to pay any tax owed, visit GOV.UK.

If customers cannot pay in full by the deadline, they may be able to set up a Time to Pay arrangement online if the amount owed is less than £30,000. There is a new affordability assessment for customers to enter their income and spending to calculate disposable income and set up an affordable payment plan.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone – even a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

Further information

More information about Self Assessment.

The breakdown of figures for those who opted to file during the festive period are:

• Christmas Eve: 8,876 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 850 returns were received
• Christmas Day: 4,757 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 402 returns were received
• Boxing Day: 12,136 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 1,121 returns were received

During December and January, the HMRC helpline is supporting customers who have queries about Self Assessment payments, refunds and who need help completing their tax return.  For all other queries go online where you’ll find guidance, videos and tools that will help you. Go to GOV.UK and search ‘Self Assessment’.

HMRC has lots of information and support available online which includes:

• HMRC’s digital assistant – the assistant will help you find information, and if you can’t find what you’re looking for you can ask to speak to an adviser. You can also access the digital assistant via the HMRC app
• guidance notes and help sheets and YouTube videos provide a wealth of information if you’re stuck or confused
• live webinars where you can ask questions or if you can’t join, you can watch recorded webinars on demand
• technical support for HMRC online services for help signing into online services
• email updates – sign up to HMRC email updates so you don’t miss out on the latest information on Self Assessment
• social media updates – follow HMRC X (formerly Twitter) @HMRCcustomers to get the latest updates on Self Assessment services and useful reminders
• if you need extra support to help your with Self Assessment you can contact a voluntary or community sector organisation who can provide you with help and advice, or you can get support directly from HMRC

The small minority of customers who require extra support or struggle to engage with us digitally can still speak to an adviser.

Customers are reminded to include their bank account details on their tax return so they can get any repayment due quickly and securely.

It is important that customers let HMRC know of any changes to their circumstances. Customers can use the HMRC app to update their details including a new address or name. Customers also need to let us know if they’ve stopped being self-employed or need to change their business details. This can be done online at GOV.UK.

The press release issued by HM Treasury on 27 December 2023.

The Chancellor Jeremy Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to Parliament alongside his Spring Budget on 6 March 2024.

The press release issued by HM Treasury on 21 December 2023.

• Chancellor Jeremy Hunt signs the Berne Financial Services Agreement – a ground-breaking pact on financial services cooperation

• UK businesses to provide financial services to the Swiss domestic market, and vice versa, more easily

• Berne Financial Services Agreement provides access to the Swiss market that no other country will have, while also providing certainty for businesses and upholding high standards of regulation

Chancellor Jeremy Hunt has today (21 December) signed the Berne Financial Services Agreement, a first of its kind pact on financial services cooperation, with his Swiss counterpart Karin Keller-Sutter.

The agreement sets sectors where the UK and Switzerland will mutually recognise each other’s domestic laws and regulations on financial services, making it easier for corporate and high net worth clients in the two markets to do business with each other.

The Berne Financial Services Agreement enables the frictionless, cross-border provision of financial services between the UK and Switzerland across areas such as asset management, banking, and investment services. For certain sectors it means that a firm based in the UK will be able to serve clients in Switzerland while largely following UK rules, and vice versa.

The agreement also secures unique access for British insurance brokers to the Swiss market. From the start of 2024, Switzerland will require any non-Swiss firms to establish a base in the country before serving Swiss clients. The UK will be the only country in the world not required to do this, putting British brokerage firms at a significant advantage to international competitors as they can continue to do business as they always have done.

Jeremy Hunt, Chancellor of the Exchequer, said:

“The Berne Financial Services Agreement is a global first and builds on the UK and Switzerland’s strengths as two of the world’s largest financial centres.

“It cements open access for financial services between our two nations for decades to come, helping us grow the economy and serving as a blueprint for future agreements with other key trading partners.”

The Berne Financial Services Agreement will make open access in financial services legally binding between the UK and Switzerland for decades to come, all while maintaining high standards of regulation, market fairness and investor protection. Both countries will also have the freedom to revise or introduce new domestic regulation as they see fit.

The agreement provides an opportunity for the UK and Switzerland to work together to strengthen international financial standards. It will also help level the playing field for some smaller firms, who will no longer have to invest time and money in navigating unfamiliar Swiss rules.

Financial advisors will also benefit. British financial advisers to high-net-worth individuals will no longer need to be registered by Swiss registration bodies to serve Swiss clients. This will remove requirements to sit Swiss examinations or provide documentation evidencing suitability, cutting red tape for the UK’s financial advisory industry.

The Berne Financial Services Agreement is only possible due to new freedoms granted to the UK following its exit from the European Union. The agreement will enhance the UK and Switzerland’s already thriving financial services relationship. Between 2016 and 2022, UK trade in financial and insurance services with Switzerland grew by 53% – reaching £3.28 billion in 2022.

The UK financial services sector is a significant contributor to the domestic economy and was valued at approximately £254 billion in the four quarters to Q2 2023. In 2020, around 40% of financial services to Switzerland were exported from UK regions outside of London and the South East, and two out of three jobs in financial services are based outside of London. This means that the benefits of the Berne Financial Services Agreement will be felt across the UK, bolstering jobs and growing the UK economy.

Separate to the Berne Financial Services Agreement, the UK is also currently negotiating an enhanced Free Trade Agreement with Switzerland that will boost ties and cover the full range of trade between the two countries.

Business and Trade Secretary Kemi Badenoch said:

“This is just the latest deal we have struck with Switzerland to help our world-leading UK financial services companies access this lucrative market and grow UK-Swiss trade in services.

“This deal complements the work we’re doing with Switzerland to agree a new, modernised free trade agreement and will help the UK reach our goal to export a trillion pounds of goods and services a year by 2030.”

Miles Celic, chief executive officer, TheCityUK, said:

“The Berne Financial Services Agreement marks a significant milestone for two of the world’s leading international financial centres. This innovative framework not only simplifies engagement in financial services, reduces barriers, and enhances efficiency, but it also strengthens market confidence and fosters innovation.

“It establishes a new and ambitious benchmark for how major financial centres can collaborate to establish gold-standard agreements, contributing to a more resilient, competitive, and interconnected global financial landscape.

“We look forward to continued collaboration with businesses and governments in both countries to ensure this agreement is effectively implemented across our industry.”

Joe Cassidy, partner, financial services, KPMG; chair, TheCityUK Switzerland Market Advisory Group, said:

“The Berne Financial Services Agreement is a historic deal shaped by collaboration between governments, regulators, and industry leaders in both countries. It also paves the way for enhanced cooperation between other major global markets.

“As an industry, our immediate focus is on its full and effective implementation, alongside negotiating an innovative and complementary UK-Swiss Free Trade Agreement. An FTA with provisions for mobility, mutual recognition of professional qualifications and digital services will significantly enhance the MRA and set the standard for the second-country model in financial services regulatory cooperation.”

David Postings, chief executive, UK Finance, said:

“The UK-Switzerland Mutual Recognition Agreement is a landmark agreement. Given it’s been drafted specifically for the financial services sector, the market access provisions and measures aimed at removing regulatory barriers go much further than those normally included in trade deals. The innovative agreement sets an ambitious precedent and we hope it will serve as the new standard for future deals with other financial centres around the world.”

Denis Vangelatos, regulatory risk and international trade sanctions director – EMEA, Aon, said:

“The Berne Financial Services Agreement represents a fantastic opportunity for the UK and Swiss insurance sectors to continue to cooperate and flourish using a dynamic and forward-looking outcomes based approach to regulation.

“This new approach not seen in other trade agreements will foster innovation, increase market access, reduce cross border friction and, through mutual recognition, create a deep and trusted partnership for two of the world’s leading financial centres.”

Chris Hayward, policy chairman of the City of London Corporation, said:

“This is a great day for the UK’s and Switzerland’s financial services sectors. The Mutual Recognition Agreement will deliver huge benefits for firms in terms of increased market access and stability enhancing commitments. This will help to boost cross-border investment, jobs, growth and competitiveness in both our countries.

“We hope the MRA sets a template for the UK’s future trading relationships, helping contribute to setting new rules and standards in the vital industries of the future including tech, creative industries and digital trade in the 21st century.”

For more information, read the full text of the agreement and explanatory material.

The press release issued by HM Treasury on 20 December 2023.

New interactive tool launched today (20 December 2023) to help businesses and charities spot and tackle domestic economic abuse.

• UK government launches interactive tool to help businesses and charities spot and tackle domestic economic abuse
• Victims of domestic abuse are at an increased risk around Christmas with reports to police forces in England and Wales rising by 25%
• Launch delivers on government pledge in summer to transform HMRC internal guide into a public facing resource, and coincides with £12 million of support at Autumn Statement for tackling domestic abuse

The UK government has today [Wednesday 20 December 2023] launched a free interactive guide to help businesses spot and tackle domestic economic abuse.

Survivors of domestic abuse are at an increased risk around Christmas and, on average, it is reported that police forces in England and Wales receive over 100 calls relating to domestic abuse every hour, and around 95% of domestic abuse victims experience economic abuse. During the Christmas period, the number of calls can rise by 25%.

The new tool, available on GOV.UK, aims to help call handlers at businesses and charities recognise abuse when speaking to customers and clients. Specialist charities such as Surviving Economic Abuse will be on standby to offer training to interested organisations.

Financial Secretary to the Treasury, Nigel Huddleston, said:

We’ve made economic abuse punishable by law, but it’s just as important that we provide the support needed to help victims escape dangerous situations.

That’s what today’s toolkit is about – the more organisations that use it, the faster we can help bring an end to abuse at home.

In summer this year, the government announced there would be a new interactive tool to help trained advisers in businesses and charities spot and tackle economic abuse. Since then, HMRC has worked closely with Surviving Economic Abuse holding workshops with charities and financial services firms to develop the tool and help get this right.

Based on a caller’s response, a trained call handler will navigate through the interactive tool to help identify potential victims. This will support the handler to decide what help the organisation might be able to offer the customer as well as provide details of relevant charities and support networks.

The launch coincides with £12 million of support for charities working with victims of domestic abuse, announced last month by the Chancellor at the Autumn Statement, helping to tackle abuse at home and help survivors rebuild their lives.

Dr Nicola Sharp-Jeffs OBE, CEO and founder of Surviving Economic Abuse, said:

Economic abuse, where an abuser controls money and the things money can buy, is a devastating form of domestic abuse. It makes it harder for victim-survivors and their children to leave and rebuild their lives safely. Reporting abuse can be intimidating, so it’s important that whoever a victim-survivor reaches out to for help – the police, a bank manager, supermarket cashier or call handler – they can give a supportive response.

We’re pleased the Treasury has launched this toolkit to support businesses to play their role in bringing economic abuse out from behind closed doors and supporting survivors to take safe steps to freedom. It’s vital that employers are properly trained in spotting the signs of economic abuse and confidently signposting to specialist support. The right response will be life changing.

Economic abuse, which Surviving Economic Abuse estimates one in five women in the UK have experienced in the last 12 months, is when an individual’s ability to acquire, use and maintain economic resources are taken away by someone else in a coercive or controlling way.

Surviving Economic Abuse research found seven in ten front-line professionals reported the number of survivors of economic abuse coming to their organisation for help had increased since the start of the pandemic. By the end of the first Covid-19 lockdown, the charity found one in five women were planning to seek help around welfare benefits.

Tackling domestic abuse is a government priority and improving the response to economic abuse is integral to this. For the first time in history, economic abuse is now recognised in law as part of the statutory definition of domestic abuse included in the Domestic Abuse Act 2021. This is in recognition of the devastating impact it can have on victims’ lives.

Further information

• If you would like to find out more about the interactive tool, please visit Public Sector Toolkits – GOV.UK.
• Today’s tool, and HMRC’s internal guidance, builds on the government’s Economic Abuse Toolkit which launched in January 2023 aimed at the public sector.
• If you are worried you might be experiencing economic abuse or a family member or friend might be, visit the Surviving Economic Abuse website for further information on accessing support.

The press release issued by HM Treasury on 19 December 2023.

The UK is to implement a new import carbon pricing mechanism by 2027 to support the decarbonisation drive.

• imports of iron, steel, aluminium, ceramics and cement from overseas will face a comparable carbon price to those goods produced in the UK
• reduces the risk of ‘carbon leakage’, avoiding emissions being displaced to other countries because they have a lower or no carbon price

Goods imported into the UK from countries with a lower or no carbon price will have to pay a levy by 2027, ensuring products from overseas face a comparable carbon price to those produced in the UK.

The UK has a track record to be proud of on decarbonisation. We were the first major economy to legislate for net zero and we are reducing our emissions faster than any other G7 country.

Decarbonising UK industry forms an important part of delivering the energy transformation needed to achieve net zero. But these efforts will not succeed if decarbonisation in the UK simply leads to higher emissions abroad.

The carbon border adjustment mechanism (CBAM) will ensure highly traded, carbon intensive products from overseas in the iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement sectors face a comparable carbon price to those produced here.

The new rules will tackle ‘carbon leakage’, reducing the risk of production and associated emissions being displaced to other countries because they have a lower or no carbon price. Carbon leakage undermines the country’s efforts to decarbonise as the world transitions to net zero.

The charge applied by the CBAM will depend on the amount of carbon emitted in the production of the imported good, and the gap between the carbon price applied in the country of origin – if any – and the carbon price faced by UK producers.

Taking this action will ensure the environmental integrity of our decarbonisation policies and will give industry in the UK the confidence to continue to invest in decarbonisation, with the knowledge that it will result in a true net reduction in global emissions.

Chancellor of the Exchequer Jeremy Hunt said:

This levy will make sure carbon intensive products from overseas – like steel and ceramics – face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions.

This should give UK industry the confidence to invest in decarbonisation as the world transitions to net zero.

Today’s news comes as the government publishes its response to a consultation on a range of domestic carbon leakage mitigation measures – which found 85% of respondents said that carbon leakage is a current or future risk to their decarbonisation efforts. This is because not all jurisdictions are moving at the same pace with the risk that UK emissions reductions do not translate into global emissions reductions, but rather that UK emissions get displaced to other less climate ambitious countries. The action announced today will help address that risk.

The design and delivery of the CBAM will be subject to further consultation in 2024, including the precise list of products in scope. The government will also engage with trade partners, including developing countries, and affected businesses and organisations, to minimise the impact on trade and the necessary compliance steps.

Alongside a CBAM, the government is also announcing its intention to work with industry to establish voluntary product standards that businesses could choose to adopt to help promote their low carbon products to customers; and to develop a framework which measures the carbon content of goods, that could support other decarbonisation policies in future.

And today, in addition to the government announcing a UK CBAM, stakeholders including power, aviation and industrial sectors have been invited to offer their views on proposed changes to the UK Emissions Trading Scheme, that will ensure it continues to support the UK’s progress to net zero.

A CBAM will work alongside the UK Emissions Trading Scheme to mitigate the risk of carbon leakage. The ETS Authority is consulting how to better target free allocations of carbon allowances for industries most at risk of carbon leakage, under the ETS. The Authority will also review whether free allocation should be adjusted to reflect any changes to carbon leakage risk for given sectors.

It is also setting out plans to ensure the ETS market continues to offer an effective financial incentive that drives its participants to decarbonise, following a call for evidence last year, with industries being asked for their view a range of potential measures – including on the design of a new Supply Adjustment Mechanism.

The government remains committed to supporting industry to decarbonise including with the Industrial Energy Transformation Fund, the Net Zero Innovation Portfolio and £20 billion investment in development of carbon capture and storage.

Stakeholder reaction

Ruth Herbert, Chief Executive, The Carbon Capture & Storage Association said:

“Fantastic to see today’s commitment to a Carbon Border Adjustment Mechanism, which is a good starting point for tackling carbon leakage on the most carbon intensive products.

“This will help some UK manufacturers to invest in low carbon technologies such as Carbon Capture, Utilisation and Storage (CCUS), to develop new low carbon products, without fear of being undercut by producers elsewhere.

“This is a smart move, given the UK’s geological assets and technical capabilities, which mean it has a clear advantage in the transition to a global net zero economy.  The details of this policy will need to ensure that exports are not disadvantaged, and that other sectors, such as refining or electricity production can benefit, as many are ideally situated in industrial clusters where they can deploy CCUS.

Combined with the UK government’s recent announcement at COP28, alongside Canada, Germany and the US, to use public procurement to buy low carbon steel, cement and concrete, this is very welcome news to those who are trying to develop the low carbon industries of the future.

“It is also an important step for the long-term development of the UK CCUS industry, alongside further deployment measures, which we hope to see in the government’s ‘CCUS vision to 2035’ later this week.”

William Bain, Head of Trade Policy, the British Chambers of Commerce, said:

“News of a carbon border adjustment mechanism (CBAM) for the UK is very much welcome. It is a logical and key enforcement element of lowering carbon emissions in the UK economy and tackling greenhouse gas releases elsewhere in the world.

“Today’s decision will provide certainty for investors and aid future growth and investment in low carbon sectors. We are keen to work closely with government and industry on the arrangements for phasing in the UK CBAM by 2027.

“A key issue will be the linkage of the UK and EU Emissions Trading Schemes (ETS), so that we avoid unnecessary trade and fiscal barriers for UK goods exports.”

Clare Jackson, Chief Executive Officer, Hydrogen UK:

“Hydrogen UK supports the introduction of this Carbon Border Adjustment Mechanism (CBAM). Carbon Pricing is one of the key tools available to accelerate decarbonisation and ensure polluters pay the price of their emissions. Historically, implementing an effective carbon price has been challenging due to the risk of industries relocating to regions without strong climate policy.

“The CBAM will reduce this carbon leakage risk and ensure the UK can charge a strong price for emissions, incentivising the switch to low carbon energy such as hydrogen, while protecting UK industry from cheap imports.”

John Egan, Peak Cluster Project Director said:

“Peak Cluster will decarbonise 40% of the UK’s cement and lime production by 2030.  An environmental and economic imperative, the project is essential for a sustainable construction sector in this country.

“We welcome the decision to implement a CBAM as a very positive step in encouraging investment into essential industrial decarbonisation.”

Stephen Phipson, Chief Executive of Make UK, said:

“This is welcome news for Energy Intensive Industries and a key recognition of the need to secure the competitiveness of key foundation industries. However, it is now essential this scheme is implemented as soon as possible to align with EU timescales and ensure a level playing field to prevent potential carbon price discrepancies.

“The Government should also look to adopt a flexible approach to its application as each sector and, material, has specific circumstances relating to their respective markets.

“Government must now engage with all stakeholders in manufacturing, including the supply chain, to ensure a comprehensive approach towards achieving environmental goals without imposing a pre-determined solution.

“Mitigating carbon leakage should provide clarity and long-term certainty to businesses, enabling them to invest and grow.”

The press release issued by HM Treasury on 14 December 2023.

HM Treasury has confirmed the appointments today.

HM Treasury has today (14 December) confirmed that Chris Grigg CBE has been reappointed as chair of the UK Infrastructure Bank (UKIB) for a further 3 years from 3 May 2024 and Muriel Dube has been appointed to the Board at UKIB as non-executive director for 4 years from 14 December 2023. Ms Dube will also take over as chair of the Remuneration Committee in due course following a handover period. The current interim chair, Tania Songini, will continue in the role on an interim basis until Ms Dube takes on the role.

The bank is a vital part of the government’s commitment to supporting private investment in UK infrastructure. High quality infrastructure is crucial for economic growth, achieving net zero and levelling up regions across the UK. Private investment in infrastructure is critical to these goals, and the bank’s remit of crowding-in private finance is an important tool to help secure that investment.

Chris Grigg CBE was the chief executive officer of British Land, a real estate development and investment company, for 11 years until November 2020. Previously, Mr Grigg was chief executive of Barclays Commercial Bank and a partner at Goldman Sachs. He has served on the Board of BAE Systems since 2013 – where he is currently the senior independent director – and is on the corporate board of Cancer Research UK.

As chair since 2021, Mr Grigg has overseen the scale-up of the bank through a critical stage in its lifetime. Mr Grigg’s experience and stewardship as chair continues to be vital in supporting it to become a mature and established organisation.

Muriel Dube is a former investment banker at Investec Plc and has over two decades executive and non-executive director experience. Before this, she served as a director in the Department of Environmental Affairs and Tourism (South Africa), as chief negotiator for the South African Government in major international climate negotiations and as the Africa representative on the United Nations Expert Group on Technology Transfer. Alongside serving on the board at UKIB, Ms Dube also currently serves as a director on the boards at Control Risks, Sasol Group Ltd, PG Group and Bravo Group.

Gareth Davies MP, Exchequer Secretary to the Treasury said:

“I congratulate Chris Grigg CBE and Muriel Dube on their appointments to the board of the UK Infrastructure Bank. The government-owned bank plays a critical role in the government’s commitment to support private investment in the country’s infrastructure and deliver our ambitions for net zero and economic growth across all parts of the UK. An effective board is critical to the success of the bank and I am confident that Chris and Muriel will support the continued success of the bank.”

Chris Grigg CBE said:

“I am delighted to be reappointed chair of the UK Infrastructure Bank. The bank has made remarkable progress since it was set up, in its mission to boost regional and local economic growth and to help tackle climate change. We have become an organisation which can both commit capital and help provide solutions to the big challenges ahead. Of course, much remains to be done. I look forward to helping deliver on the bank’s mission at a critical time for the UK.

“I am likewise very pleased to see the appointment of Muriel Dube to the UKIB board. Muriel brings a wealth of global experience and a new perspective. Her support for the bank will be invaluable as it seeks to deliver against its mission.”

Muriel Dube said:

“It is a huge privilege to accept this role with the UK Infrastructure Bank. The bank’s mission to deliver economic growth across the UK and tackle climate change is vital and compelling, and I am excited to take this opportunity to support the bank to deliver.”

About the Appointment Process:

Chris Grigg CBE has been reappointed for a further 3-year term following the provisions of his original appointment, having met required performance standards and with the agreement of ministers. The chair role is a non-executive part-time position.

Mr Grigg has confirmed that he has not undertaken any political activity within the previous five years including donating to, or canvassing on behalf of, any political party.

Muriel Dube was appointed following a fair and open competition after the role was advertised on the Cabinet Office Public Appointments website between 25 April and 18 May. An advisory assessment panel chaired by Chris Grigg (Chair, UKIB) and also consisting of Tim Jarvis (Director of Companies and Economic Security, HM Treasury) and Robin Lawther (multiple non-executive director positions, independent panel member) interviewed a number of candidates and made recommendations to the Economic Secretary to the Treasury, which informed the selection decision.

Ms Dube has confirmed that she has not undertaken any political activity within the previous five years including donating to, or canvassing on behalf of, any political party.