Tag: Treasury

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

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

The Chancellor of the Exchequer has this day appointed Joshua Cameron Simons to be Steward and Bailiff of the Three Hundreds of Chiltern.

The press release issued by HM Treasury on 15 May 2026.

The Chancellor of the Exchequer has this day appointed Stephen Mark Flynn to be Steward and Bailiff of the Manor of Northstead.

The press release issued by HM Treasury on 14 May 2026.

The Chancellor of the Exchequer has this day appointed Stephen Patrick Gethins to be Steward and Bailiff of the Three Hundreds of Chiltern.

The press release issued by HM Treasury on 14 May 2026.

An independent review will look at how shifts in face-to-face banking services affect people and communities, with new powers enabling the Government to act on what it finds.

• Lucy Rigby, Economic Secretary to the Treasury, has commissioned independent review to protect access to face‑to‑face banking across the UK.
• Review to be led by Richard Lloyd, former Which? director and former board member of the FCA.
• Findings will inform new powers for Government to act where access to banking is at risk.

The Government is taking action to ensure people and communities across the UK can continue to access the banking services they need by commissioning an independent review alongside delivering new powers to act on the findings.

The way people across the UK use retail banking services has changed significantly, with many customers now choosing to bank online. In response, banks and building societies have reshaped their branch networks, reflecting changing customer preferences – but this may be creating challenges for those who rely on in-person banking services.

The review will gather evidence on the real‑world impact of branch closures, identify who is most affected, and assess where further action may be needed to protect access to banking services.

The Review follows the announcement of the Financial Services and Markets Bill in the King’s Speech, where the Treasury intends to include a power to be able to act swiftly if the evidence supports intervention on access to banking services.

Lucy Rigby, Economic Secretary to the Treasury, said:

Banking services are a really important part of lives and communities, and it’s critical we can all access what we need – whether through local banking services or strong community-based alternatives like credit unions.

We are supporting industry’s roll out of banking hubs , but we also need a clear picture of where communities are still losing out. This independent Review will show us where the problems are and what further action may be required – and we will move quickly to legislate where the evidence shows it is needed.

The Access to Banking Review will be chaired by Richard Lloyd OBE, who will provide a report and recommendations to Government by October 2026. He brings strong regulatory and consumer experience, having served as a non-executive director (and interim Chair) of the Financial Conduct Authority and as Executive Director of Which?

The Bill will also take forward some of the credit union common bond reforms announced in March, making it easier for credit unions in Great Britain to expand and broaden their membership.

The changes will see more people access affordable credit and a safe place to save The move will strengthen community-based financial services, delivering on the manifesto pledge to grow the mutuals sector.

He also contributed to the Access to Cash Review, which set out practical recommendations to make sure people can still withdraw and deposit cash locally. The findings of the review helped inform later changes in law and regulation, including new FCA powers  and encouraged industry solutions such as banking hubs. Richard is currently the Chair of the Independent Parliamentary Standards Authority (IPSA).

Richard Lloyd OBE, Chair of Access to Banking review, said:

Banking is an essential service that every consumer and community in the UK needs. That’s why it’s so important to take stock of the impact that the big shift to digital services has already had, and to understand the need for access to in-person banking in the future. I hope to hear from as wide a range of views as possible, and welcome the Treasury’s commitment to taking action should this independent review find evidence that new legislation is needed.

Gareth Oakley, Chief Executive Officer, Cash Access UK said:

While cash usage continues to decline as digital payments expand, we’ve seen first-hand how important local access to cash and face-to-face banking is for many households and businesses. Our job is to deliver solutions where these are needed and to date we’ve opened 237 banking hubs and over 140 deposit services.

There’s more work to be done, but the good news is that 95 percent of customer needs are met when visiting a banking hub and nearly 9 in 10 customers would recommend Hub services to family and friends.

We look forward to contributing towards the review and working with Government.

Sarah Harrison, Chief Executive, Building Societies Association (BSA)

Building societies and credit unions are rooted in local communities and provide more than 1 in 3 high street branches.

As customer needs change, building societies are continuing to meet these both by investing in digital channels as well as innovating in high street branches and the use of community spaces – so it’s the customer’s choice of how and when to engage.  We welcome the Government’s Access to Banking Review and look forward to contributing.

The proposed credit union reforms are an important step in helping more people to access fair, straightforward financial services, essential at a time when household finances are under real pressure. Access to affordable borrowing and a safe place.

Matt Bland, Chief Executive, All Together Money – The credit union movement, said:

We’re delighted to see credit union common bond reform confirmed in the King’s Speech. This is a significant step forward for the sector in delivering our Credit Union Sector Growth Plan. The proposed changes will remove barriers to growth and provide credit unions with greater flexibility to reach many more people with affordable financial services alongside the major Fair4All Finance investment in credit union transformation committed to in the Financial Inclusion Strategy.

Notes to editors:

Banking hubs

• Access to cash is already protected by regulation, with voluntary solutions like banking hubs being put in place. The Government has a manifesto commitment to work with industry to deliver 350 banking hubs by the end of this Parliament. Delivery is well underway, with over 275 hubs announced, and more than 230 already open. But there are no equivalent protections for wider in-person banking services.
• Banking hubs are a voluntary industry initiative from the largest UK high street banks which provide ‘assisted cash services’ in shared premises. They were developed by the industry as a way to comply with their obligations under the FCA’s access to cash regime.
• Hubs offer cash counter services provided by Post Office staff, allowing the vast majority of UK banking customers to withdraw and deposit cash. Beyond cash services, banking hubs also provide some wider in-person banking services to customers of banks, voluntarily.

Building societies

• Building societies are customer-owned businesses which reinvest their profits for the benefits of their members and communities. They all provide mortgages and savings and a number also provide current accounts.
• With all of their headquarters outside London, building societies operate through approximately 1,300 branches, holding a 35% share of branches across the UK. 

Credit unions

• Credit unions are financial co-operatives that receive savings deposits from their members and provide loans to members using these funds, with the interest paid contributing to the provision of their services.
• Credit unions must have a ‘common bond’ – a defined connection between members, such as living or working in a particular area, or sharing a workplace or profession.

Financial Services and Markets Bill

This Bill was announced in the King’s Speech on the 13 May.

The press release issued by HM Treasury on 23 April 2026.

The Government will contact thousands of young people about forgotten Child Trust Funds (CTFs) in a bid to reunite account holders with their accounts, worth £2,200 on average.

CTFs were introduced by the Government in 2005 to ensure every child had a concrete stake in our economy and access to an asset on which to build a financial future once they reached 18.  The scheme ran for children born between 1 September 2002 and 2 January 2011.

The Government is undertaking an extensive awareness campaign urging young people to locate their CTFs through the free “Find My Child Trust Fund” service on GOV.UK. As it stands too many young people are unaware they have a CTF and over 750,000 accounts are unclaimed. The Government is determined to act so every young person that has a CTF is aware of how to access it.

In order to build on existing efforts, HMRC will be writing to all 21-year-olds whose accounts remain unclaimed to make them aware they have a CTF.

In addition, the Economic Secretary to the Treasury, Lucy Rigby, convened a roundtable earlier this week with CTF providers from across the sector to identify how the sector can go further in reconnecting savers with their CTF accounts, and how Government and industry can coordinate their efforts to greatest effect.

Economic Secretary to the Treasury, Lucy Rigby, said:

Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life.

I’m determined that those who have CTFs are made aware they have this money.

Together, we will ensure funds from these Child Trust Funds can be accessed by young people to help give them the best start to adult life.

Notes to editors

• HMRC already provide a free “Find My Child Trust Fund” service on GOV.UK to help connect savers to their CTF provider.
• Regular publicity campaigns to raise awareness of Child Trust Funds are targeted to young people and their parents and include press activity, broadcast, social media, stakeholder and paid-for partnerships.
• Alongside this, HMRC is taking further targeted action to help young people access their Child Trust Funds by writing to 21 years olds whose accounts remain unclaimed to make them aware they have a CTF account and encourage them to claim it. 21 has been chosen as HMRC believes that at that age, most young people will have had some interaction with HMRC either through PAYE or student finance, resulting in an up-to-date address information.
• Young people can access the CTF provider finder tool here.

Roundtable attendees

• Simon Gallimore, CEO, Unity Mutual
• Nici Audhlam-Gardiner, CEO, Forester Life Ltd
• Jim Islam, CEO, Family Equity Plan Limited (Trading as One Family) & Engage Mutual Funds Ltd
• Gail Thomson, Business Risk & Oversight Lead, Royal Bank of Scotland Plc
• Tom Riley, Group Director of Retail Products, Nationwide
• Martin Oates, Head of Wealth & Private Bank Operations, HSBC
• James Short, General Manager, Pilling & Co Stockbrokers Ltd
• Peter Green, CEO, Rechabite Friendly Society Ltd (Trading as Healthy Investment)
• Jamie Bellamy, CEO, Sheffield Mutual Friendly Society