Tag: Treasury

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

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

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

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

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

Chancellor of the Exchequer, Rachel Reeves, said:

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

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

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

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

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

Further information

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

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

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

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

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

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

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

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

As a result:  

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

Environment Secretary Emma Reynolds said:   

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

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

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

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

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

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

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

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

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

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

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

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

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

Exchequer Secretary to the Treasury, Dan Tomlinson, said:

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

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

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

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

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

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

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

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

Further information

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

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

The Chancellor of the Exchequer Rachel Reeves has asked the Office for Budget Responsibility to prepare an economic and fiscal forecast for publication on 3 March 2026. 

As set out at the Budget, the Spring forecast will not make an assessment of the government’s performance against the fiscal mandate and will instead provide an interim update on the economy and public finances. 

The government will respond to the March forecast through a statement to Parliament, in line with the government’s commitment to deliver one major fiscal event a year at the Budget. 

This approach gives families and businesses the stability and certainty they need and supports the government’s growth mission.

The press release issued by HM Treasury on 11 December 2025.

Over 440 firms now committed to improving female representation at the top of the industry.

• Dame Amanda Blanc steps down as Women in Finance Champion after 5 years in the role, with senior female representation rising from 32% to 36% under her tenure 
• Nationwide CEO Dame Debbie Crosbie appointed as new Women in Finance Champion, as Government pushes for more women in senior City roles.

The Chancellor has appointed Nationwide Building Society CEO Dame Debbie Crosbie as the new Women in Finance champion, as ministers step up the pressure on the City to go further and faster on women’s progression to senior roles. 

Dame Debbie succeeds Aviva CEO Dame Amanda Blanc, whose tenure saw senior female representation in key finance roles jump from 32% to 36% as well as leading the charge on strengthening the pipeline for women into financial services. 

As Champion, Dame Debbie will continue to drive momentum behind the HM Treasury Women in Finance Charter, which covers more than 440 firms and aims to improve the representation of women in senior leadership to boost the productivity and growth of UK financial services.

Chancellor of the Exchequer, Rachel Reeves, said:

When I became Chancellor, I said my time in office would be a success if more young women and girls knew there should be no ceiling on their ambition and no limit to what they can achieve. 

The Women in Finance Charter is a key tool to achieve that progress. I thank Amanda for her exceptional leadership over the past 5 years, and look forward to working with Debbie as she takes on the mantle.

Dame Amanda Blanc said:  

I am incredibly proud of the progress made during my time as Women in Finance Champion. 

There is still plenty more to do to reach parity and I know that Debbie will be a powerful driving force in bringing about further progress and ensuring even more talented women are given the opportunities they deserve to thrive and lead.

Dame Debbie Crosbie said: 

When women succeed in business they inspire the next generation and ensure economic growth is sustainable and inclusive. The Charter is key to driving even more growth in financial services and harnessing all of the sector’s skills and talents.  I look forward to building on the excellent progress made by Amanda, and working with the Chancellor and across our industry to encourage even more growth and progress.

Over the last 5 years, Dame Amanda has driven progress in the sector through developing a blueprint for change, advocating for women in underrepresented spaces such as tech, strengthening the talent pipeline through the Mirror Taskforce of talented mid-level women, and convening leaders – including the Women in Finance Climate Action Group for COP26 and Accountable Executive Taskforce – to focus on greater gender parity. 

Dame Debbie Crosbie will take up the Women in Finance Champion role from 1 January 2026, serving in an unpaid, direct ministerial appointment reporting to the Economic Secretary to the Treasury.  

Dame Debbie joined Nationwide as its first-ever female CEO in June 2022 and was appointed a Dame Commander of the British Empire (DBE) in June 2025 for services to the financial sector.

The press release issued by HM Treasury on 11 December 2025.

David Roberts reappointed as Chair of the Bank of England’s Court of Directors and Dame Anne Glover and Diana Noble reappointed as Non‑Executive Directors.

• David Roberts has been reappointed as Chair of the Court of the Bank of England by the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP. 
• Following his reappointment, he will serve a second four‑year term as Chair of Court, commencing on 24 October 2026. 
• The Chancellor has also reappointed two Non‑Executive Directors on the Bank’s Court:
  • Dame Anne Glover has been reappointed as a Non‑Executive Director until 31 May 2028; and 
  • Diana Noble has been reappointed as a Non‑Executive Director until 31 May 2027.

The Rt Hon Rachel Reeves MP, Chancellor of the Exchequer, said:

I am pleased to confirm the reappointment of David Roberts as Chair of the Bank of England’s Court, alongside the reappointments of Dame Anne Glover and Diana Noble as Non‑Executive Directors.

Each of them brings exceptional experience and expertise from across financial services, investment and the wider economy. Their continued service will support the Bank to deliver its core missions of monetary and financial stability.

Governor of the Bank of England, Andrew Bailey, said: 

I am delighted that David Roberts, Diana Noble and Anne Glover have been reappointed to serve on the Bank’s Court, and I welcome their continued contributions to the organisation

About David Roberts 

David Roberts is Chair of the Bank of England’s Court, leading the board in setting strategy, risk appetite and key organisational decisions. 

He also holds advisory roles at The Mentoring Foundation, Henley Business School, and Campion Willcocks. Previously, he chaired Beazley plc and Nationwide Building Society, was Vice Chair of NHS England, and Group Deputy Chair at Lloyds Banking Group. David spent 24 years at Barclays, becoming a Main Board Executive Director, and later served as Chair and CEO of Bawag PSK AG. 

He holds an MBA and two honorary doctorates and has been recognised with a CBE and the Chartered Management Institute’s Gold Medal for Management. 

About Dame Anne Glover 

Dame Anne Glover is a Non‑Executive Director on the Bank of England’s Court of Directors and Chief Executive and Co‑Founder of Amadeus Capital Partners. With over 35 years’ experience as a venture capitalist, she has a strong background in science, engineering and business. 

Anne was awarded a DBE in 2025 and a CBE in 2006 for her services to business and engineering. She holds honorary fellowships with the Royal Academy of Engineering, the Royal Society of Edinburgh, and Clare College, Cambridge. 

Her career includes roles in manufacturing with Cummins Engine Company, consulting at Bain & Co, investing at Apax Partners, and operational leadership at Virtuality Group. She has chaired both the British Private Equity and Venture Capital Association and Invest Europe, and serves on investment committees for British International Investment and the Yale Endowment. 

About Diana Noble 

Diana Noble is Deputy Chair of the Bank of England’s Court and Chair of the Remuneration Committee. She also serves on the boards of Wellcome Trust and Brookfield Asset Management, and is a Trustee of The Children’s Society. 

Diana was CEO of CDC (now British International Investment), the UK’s development finance institution, from 2011 to 2017, leading a period of significant transformation and growth. Her career spans private equity, venture capital and international development, including senior roles at Schroder Ventures (now Permira), founding two venture funds, and serving as Executive Vice President, Operations at the Clinton Foundation’s Health Access Initiative. 

Diana holds a first‑class Law degree and was awarded a CBE in 2017. 

About the Court of the Bank of England 

The Court of the Bank of England acts as the Bank’s board. It is responsible for overseeing the Bank’s strategy, governance, budget and risk framework, and for ensuring the effective discharge of the Bank’s statutory functions. 

The Court consists of the Chair and eight other Non‑Executive Directors, the Governor and four Deputy Governors. The Bank’s Chief Operating Officer also attends Court, although they are not technically a full member. Non‑Executive Directors bring independent judgement and a breadth of experience to the Court’s deliberations. 

About the appointment process 

Reappointments to the Court of the Bank of England are not automatic. Each case is considered on its own merits. 

The reappointment of David Roberts for a second four‑year term as Chair of Court, commencing on 24 October 2026, and the reappointments of Dame Anne Glover as a Non‑Executive Director until 31 May 2028 and Diana Noble as a Non‑Executive Director until 31 May 2027, have been made by the Chancellor of the Exchequer and the Economic Secretary to the Treasury in line with the requirements of the Governance Code on Public Appointments. 

David Roberts, Dame Anne Glover and Diana Noble have confirmed that they have not engaged in any political activity in the last five years.

The press release issued by HM Treasury on 9 December 2025.

The G7 Finance Ministers met virtually on 8 December 2025.

We, the G7 Finance Ministers, held a virtual meeting on 8 December 2025, together with the Heads of the International Monetary Fund (IMF), World Bank Group (WBG), Organisation for Economic Cooperation and Development (OECD), and Financial Stability Board (FSB). We were also joined by Canada’s Minister of Energy and Natural Resources and Finance Ministers, or their representatives, from Australia, Chile, Mexico, India, and the Republic of Korea for parts of the meeting.

We welcomed the recent announcements at the G7 Energy and Environment Ministers’ Meeting that seek to secure resilient supply chains for critical minerals. Stable and reliable supply chains are essential to drive economic growth and security, and we will continue to collaborate with international allies and industry partners to reduce single-source dependencies and strengthen our economic resilience. We look forward to further discussions on how we can create a high standards market that will secure our supply chains.

We agreed that the use of non-market policies and practices to disrupt critical minerals supply chains can have significant negative global macroeconomic consequences. They can increase price volatility and undermine global growth prospects and stability, competitiveness and national and economic security. We expressed deep concern with the application of export controls on critical mineral supply chains and committed to work together to diversify and derisk supply chains.

Reaffirming the G7’s unwavering support for Ukraine in defending its territorial integrity and right to exist and its freedom, sovereignty and independence, we welcomed an update from the IMF on the situation in the country and the newly announced Staff Level Agreement. We will continue to work together to develop a wide range of financing options to support Ukraine, including potentially using the full value of the Russian Sovereign Assets, immobilized in our jurisdictions until reparations are paid for by Russia, to end the war and ensure a just and lasting peace in Ukraine. Our action will remain consistent with our respective legal frameworks. We will continue to support the Ukrainian authorities’ commitment to implement reforms, notably addressing informality, tackling corruption, and improving governance including in the state-owned enterprise sector. Together with other partners, we stand ready to support a new IMF program. We also stand ready to amplify the pressure on Russia should peace talks fail. We agreed on the importance of maintaining Ukraine at the top of the G7 agenda under France’s upcoming G7 presidency.  

We agreed on the importance of strengthening G7 coordination with international partners and will continue to enhance our collective security and resilience.

The press release issued by HM Treasury on 9 December 2025.

Britain’s leading founders – including CEOs from Huel and Moneybox – head to No10 to celebrate the government’s multi-billion-pound pro-growth business package.

• Comes as the Budget unlocks billions for innovative firms and delivers the biggest shake-up of entrepreneur tax incentives in a generation.
• Alex Depledge to stay on as UK’s first Entrepreneurship Adviser, supercharging Chancellor’s reforms to support scale-ups and deliver the modern Industrial Strategy’s ambition to make Britain one of the best places in world to do business.

The Chancellor welcomed the UK’s top entrepreneurs to No10 Downing Street last night (8 December), celebrating a bold new plan to back homegrown founders and continue making Britain one of the best places in the world to scale a business as part of the government’s modern Industrial Strategy. 

Founders, investors and innovators from across the UK – including meal-in-a-bottle firm Huel, savings app Moneybox and crime-busting tech company Quantexa – heard the Chancellor’s message loud and clear: economic growth is the government’s number one mission, and Britain’s entrepreneurs will be central to delivering it. 

Last night’s reception follows the Budget, which delivered the most ambitious package for scale-ups in more than a decade: sweeping reforms to tax incentives so firms can attract world-class talent and investment, billions in long-term backing for science and technology firms, and changes to public procurement so taxpayer money is used to drive innovation. 

That builds on efforts to cut burdensome rules and regulation holding back investment and innovation, with the Chancellor setting out how the government will deliver a 25% cut in the administrative cost of regulation over this Parliament worth £6 billion a year to businesses. 

The Chancellor also confirmed that Alex Depledge MBE will continue as her Entrepreneurship Adviser until summer 2026, driving forward reforms to remove the barriers scale-ups face – from accessing finance to navigating complex regulation – so strategically important companies can realise their potential.

Chancellor of the Exchequer, Rachel Reeves, said:

This government backs our entrepreneurs. That’s why we’re overhauling the rulebook – modernising tax incentives, unlocking billions in investment and making it easier for founders to hire, build and grow. Because when British businesses thrive, so does our economy.

Alex Depledge MBE said:

High-growth companies power national growth — if we’re serious about expanding the economy, this is the lever to pull. We don’t need handouts; we need a system that backs the people willing to take risks.  

This Budget is a real step-change, and I’m genuinely excited to keep working with the Chancellor to clear the obstacles that stop scale-ups from reaching their full potential.

The government is doubling eligibility for key schemes such as the Enterprise Management Incentive  and raising investment limits under the Enterprise Investment Scheme. EMI hasn’t been updated in 15 years – and these changes will help high-growth firms reward teams, attract world-class talent and pull in more early-stage capital, boosting Britain’s competitiveness.

Tom Leathes, CEO and Co-Founder of Motorway.com, said:  

The changes to the EMI scheme will make a huge difference. When Motorway hit 250 employees, we suddenly couldn’t offer new joiners the same equity opportunity as our early team. These reforms fix that. Extending option lifespans to 15 years and doubling the employee cap gives UK scale-ups far more firepower to compete for world-class talent much longer into the journey. 

People who join scaling companies take a bet – and when it works, they should share in what they helped build. This is exactly the kind of policy that helps British companies scale and succeed for the long term.

Joshua Western, CEO and Co-Founder of Space Forge, said:

As a European advanced materials company, focused on providing a sovereign, secure and sustainable supply of semiconductor materials to the continent, Space Forge is pleased to be involved with boosting British entrepreneurship. 

It is more important than ever to support entrepreneurship to deliver capability and growth and Space Forge is proud to be a part of that story across the European continent. The entrepreneurship budget announcements by the Chancellor are an important step in recognising the growth engine that start-ups are for the economy.

Alongside this, the government has launched an in-depth conversation with founders and investors about how the tax system supports entrepreneurs, ensuring it rewards people who take risks, reinvest in their businesses and create jobs. This work sits alongside the Entrepreneurship Prospectus, setting out a long-term plan to make the UK the easiest place to start and scale a business. 

A £7 billion injection into UK Research & Innovation (UKRI) will help the UK’s most promising companies push breakthroughs from lab to market, while targeted programmes ensure high-growth firms can access the scale-up capital they need without leaving the UK. 

A new £130 million Growth Catalyst from Innovate UK will deliver grants and hands-on support to cutting-edge science and tech firms. A previous version of this programme turned £156m of grants into £1.55bn of follow-on investment – a tenfold return. 

Meanwhile, the British Business Banks will invest £5 billion in growing companies, crowding in billions more private capital and supporting firms through the risky “Valley of Death” stage so they can scale, hire and export from British soil.

The press release issued by HM Treasury on 9 December 2025.

Taxpayers lost £10.9 billion to fraud and error as the previous government’s pandemic response left the front door open to fraud, an independent report reveals today (9 December 2025).

• Independent Commissioner finds last government’s support schemes left the front door open to covid fraud with £10.9 billion lost to pandemic fraudsters
• Government has already actioned recommendations in Covid Counter Fraud Commissioner’s report – including new fraud powers and voluntary repayment scheme
• Further action planned to retrieve lost funds and prevent repeat of mistakes in future crises

The Covid Counter Fraud Commissioner, Tom Hayhoe’s, final report to Parliament finds many schemes – including Bounce Back Loans – were rolled out with huge fraud risks and no early safeguards – costing the taxpayer millions.

Weak accountability, bad quality data and poor contracting were identified as the primary causes of the £10.9 billion pound losses – which were enough to fund daily free school meals for the UK’s 2.7 million eligible children for eight years.

Chancellor Rachel Reeves appointed Tom Hayhoe in December 2024 to ensure mistakes of the past are never repeated, with this government already recouping almost £400 million of covid support cash.

Chancellor, Rachel Reeves said:

Leaving the front door wide open to fraud has cost the British taxpayer £10.9 billion — money that should have been funding our public services, supporting families, and strengthening our economy.

We have started returning this money to the British people and we will leave no stone unturned in rooting out the fraudsters who profited from pandemic negligence.

The government has already actioned many of the Commissioner’s early proposals. These include: 

• A voluntary repayment scheme, launched in September, giving claimants until 31 December to pay up. 
• Tougher sanctions powers through the Public Authorities (Fraud, Error and Recovery) Bill, which became law on 2 December. 
• Specialist fraud recovery teams to track down suspected fraudsters and recover taxpayer cash, from 2026.

Josh Simons, Cabinet Office Minister, said: 

We’re taking more action to bring fraudsters to justice and make the state the hardest possible target: giving investigators new powers to take on cases, using artificial intelligence to speed-up counter-fraud work, and setting up a repayment scheme to claw back money into the public purse.

The report highlights that counter fraud controls were ‘inadequate’ and only improved later in the pandemic. Hayhoe makes further recommendations to ensure the country is prepared for further crises that need an economic response from government –  emphasising that future preparation and robust controls will provide the best value for money for taxpayers.

The government will consider the report in full and respond early in the new year.

The press release issued by HM Treasury on 4 December 2025.

This is the first use of the Domestic Counter-Terrorism Regime to disrupt funding for Pro-Khalistan militant group Babbar Khalsa.

• Assets of the individual have been frozen, and they are banned from running UK companies. 
• A group supporting terrorism has also been hit by an asset freeze.

The UK has today announced an asset freeze and director disqualification against Gurpreet Singh Rehal (REHAL) who is suspected of belonging to organisations involved in terrorism in India. HM Treasury has also announced an asset freeze against a group, Babbar Akali Lehar, for promoting and supporting the same terrorist group.

HM Treasury assesses REHAL is involved in Babbar Khalsa and Babbar Akali Lehar’s terrorist activities, including promoting and encouraging, carrying out recruitment activities for, providing financial services to as well as supporting and assisting those organisations, including through purchasing weapons and other military materiel.

HM Treasury also assesses that Babbar Akali Lehar is associated with, and involved in, Babbar Khalsa’s terrorist activities by promoting and encouraging and carrying out recruitment activities for the group and itself.

All funds and economic resources in the UK owned, held or controlled by REHAL or Babbar Akali Lehar are now subject to an asset freeze. These designations will prevent all UK persons and entities from dealing with any funds or economic resources owned, held or controlled by either REHAL or Babbar Akali Lehar; or making funds, economic resources and financial services available to or for their benefit. This includes any of the entities they own or control, without a licence from HM Treasury or an applicable exception.

REHAL is also subject to director disqualification sanctions which prohibit him from acting as a director of a company or directly or indirectly taking part in or being concerned in the promotion, formation or management of a company.

Today’s action is the result of close collaboration between HM Treasury and policing partners, demonstrating the government’s determination to protect both national security and the peaceful communities affected by terrorism. 

Economic Secretary to the Treasury Lucy Rigby KC MP said:

We will not stand by while terrorists exploit Britain’s financial system. This landmark action shows we are prepared to use every tool at our disposal to choke off funding for terrorism – wherever it occurs and whoever is responsible. The UK stands firmly with peaceful communities against those who promote violence and hatred.

Further information 

• The Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019 (the Regulations) allow HM Treasury to freeze assets and impose restrictions on individuals and entities suspected of involvement in terrorism. This helps prevent terrorist financing and protects the UK’s financial system from abuse. 
• From 4 December 2025, it is prohibited to: 
• Deal with funds or economic resources owned, held or controlled by Babbar Akali Lehar, Rehal, or his organisations.
• Make funds, financial services or economic resources available to them.
• Allow Rehal to act as a director or take part in company management.
• Violations carry penalties of up to seven years’ imprisonment on indictment, or civil penalties of up to £1 million or 50% of the breach value – whichever is greater. 
• The designation extends to organisations owned by Rehal namely; Saving Punjab CIC (company number: 13892609), Whitehawk Consultations Ltd (company number: 15662866) and unincorporated organisation/association Loha Designs.  

About Babbar Khalsa and Babbar Akali Lehar

Babbar Khalsa (which also uses the name Babbar Khalsa International) is a proscribed terrorist organisation. HM Treasury assesses Babbar Akali Lehar to be an “involved person” under the regulations.