Tag: Treasury

The press release issued by HM Treasury on 17 July 2025.

Chancellor launches new Infrastructure Partnership with South Africa, opening up significant investment and export opportunities for UK firms.

British businesses will have more opportunities to expand, invest and export to South Africa through a flagship partnership launched today, 17 July.

At an event in Durban, Chancellor Rachel Reeves hailed the agreement as having the potential to be transformative for the best and brightest British firms doing business in the country who had long been looking for government support in unlocking commercial opportunities in areas like architectural design, engineering, and professional and business services.

The UK is the biggest international investor in South Africa, but businesses have faced challenges such as project delays due to blockers on infrastructure delivery. British expertise will be brought in to unblock these barriers on building, speeding up a pipeline of projects which British firms are well-placed to win tenders for. This will help growth and development in South Africa, and also help Britain get better return on its investments in the country.

This model of Government-to-Government (G2G) Infrastructure Partnership has previously delivered strong growth and jobs in countries such as Peru, with companies such as Arup and Turner & Townsend building a track-record of international delivery and bringing economic growth to the UK.

The Chancellor saw first-hand how those two businesses have already been showcasing British expertise in designing, planning and building infrastructure in South Africa during her visit in February to the V&A Waterfront in Cape Town – a site expansion project which Arup and Turner & Townsend won the contracts for.

Chancellor of the Exchequer, Rachel Reeves said:

This is exactly what our Plan for Change is all about – backing British businesses who have been held back for too long to compete and win on the global stage.  By unlocking these opportunities, we’re opening doors for British expertise in engineering, design and project management, creating a pipeline of work in South Africa to support good jobs paying decent wages.

When British businesses thrive abroad, it strengthens our economy at home – delivering security for working people and putting more money in their pockets. That’s the foundation of sustainable growth that our Plan for Change is designed to deliver.

South Africa’s Minister of Public Works & Infrastructure, Dean Macpherson, said:

This landmark partnership with the UK reflects our vision to ensure that public assets deliver real value for our people and to turn South Africa into a construction site which will help grow our economy and create jobs. By injecting technical expertise and delivery support into stalled projects within the Department of Public Works & Infrastructure, we are turning neglected buildings and land into opportunities for job creation, economic growth, and restored dignity.

This agreement is about far more than bricks and mortar; it’s about ensuring every rand spent on public assets advances the public good, accelerates infrastructure delivery, and grows our economy.

Funded with a mix of UK ODA and non-ODA, the G2G Partnership will formalise UK support via technical assistance for new initiatives to improve South Africa’s management of public assets, accelerate project delivery in selected local municipalities, and launch an initiative to bring in external consultants to drive major projects and override longstanding inefficiencies.

The G2G Partnership enhances the thriving collaboration between the UK’s Department for Business and Trade, the Foreign, Commonwealth & Development Office and South Africa’s Department of Public Works & Infrastructure. It builds on the close business relationship between both countries and paves the way to unlocking new export opportunities for UK businesses, primarily in the professional and business services and infrastructure sectors, bringing economic growth to the UK.

Today’s announcement also further builds on the UK’s Growth and Investment Partnership with South Africa, a first-of-its-kind collaboration initiated by Foreign Secretary David Lammy during his visit to Cape Town in November 2024. Projects announced to date through the Growth and Investment Partnership include initiatives around inclusive agriculture, export promotion, and rail reform delivered by Crossrail international.

It comes as Prime Minister Keir Starmer and German Chancellor Friedrich Merz signed the UK-Germany Treaty in London this afternoon. Included within this is a commitment for public financial institutions in the UK and Germany to work together in mobilising private capital into high-growth industries, opening up opportunities for innovative British businesses. Reeves will mark the agreement in a meeting with her counterpart Vice-Chancellor Lars Klingbeil, in Durban later this afternoon.

Coupled with the launch of the UK-SA Infrastructure Partnership, the agreements recognise infrastructure as key to growth and that cooperating with international partners to invest in that infrastructure is a route to delivering the UK Government’s Industrial Strategy: with more good jobs and more money in the pockets of working people across our countries.

Business and Trade Secretary, Jonathan Reynolds said:

Our Modern Industrial Strategy, and Trade Strategy, are about playing to the UK’s strengths.

Our businesses lead the way in engineering and major infrastructure projects, and partnerships like these help unlock new exports, investment and job-creating contracts.

This Government-to-Government Partnership builds on the UK’s thriving business relationship with South Africa and shows how our Plan for Change is paving the way for growth at home by unlocking new opportunities abroad.

As the government unlocks infrastructure pipelines abroad, it has today published its pipeline of infrastructure projects at home through the National Infrastructure and Service Transformation Authority.

The 10-Year Infrastructure Strategy includes investment of at least £725 billion into infrastructure over the next decade across eight growth-driving sectors where Britain holds a cutting-edge on the world stage, while the landmark Planning and Infrastructure Bill will also speed up and streamline the delivery of new homes and critical infrastructure – cutting unnecessary red tape which stifles delivery. The measures in the Bill are expected to boost the UK economy by £7.5 billion over the next 10 years – with planning reforms having the largest positive growth effect from a single measure ever scored by the Office for Budget Responsibility.

The press release issued by HM Treasury on 15 July 2025.

Red tape cut and savers supported to invest as Chancellor rewires financial system to boost growth.

Working people will be equipped with the support they need to invest and grow their savings, under plans to rewire the financial system to attract investment, create good skilled jobs across the country and put more money into people’s pockets.

Banks will send investment opportunities to savers with cash sitting in low-interest accounts for the first time, and major financial institutions – including high street banks – are backing an advertising campaign that will highlight the opportunities of investing for consumers who are able to do so.

Under current trends, moving £2,000 from these accounts to stocks and shares could make millions of people over £9,000 better off in 20 years’ time.

The plans to boost people’s savings and the economy were unveiled by the Chancellor at a summit of top finance executives in Leeds today as she set out the widest ranging reforms to financial regulation in over a decade – backing one of the key eight growth driving sectors of the future identified in the Government’s modern Industrial Strategy published last month.

The Chancellor told executives that, having delivered stability and a sustainable strategy for investment, it was time for the UK to “double down on its global strengths” through reform to make sure it stays ahead in the global race for business investment and the good skilled jobs they bring.

Chancellor of the Exchequer, Rachel Reeves said:

We fixed the public finances and stabilised the economy. Now we need to double down on our global strengths to put the UK ahead in the global race for financial businesses – creating good skilled jobs in every part of the country and helping savers’ money go further through our Plan for Change.

Business Secretary, Jonathan Reynolds said:

Financial Services are a UK success story, and one of the eight sectors we identified with the biggest potential for growth in our modern Industrial Strategy.

This sector plan will help make the UK the number one destination for financial services by 2035 and is all about delivering on our Plan for Change to boost the economy and put more money in people’s pockets.

Economic Secretary to the Treasury, Emma Reynolds said:

Helping people take advantage of better returns from investing is key to better financial health, giving them a stake in a growing economy and connecting promising businesses with capital. These reforms will make the UK the best location for financial services firms and tear down barriers to investment to growing our economy and making families better off.

The Leeds Reforms tear down the barriers to attracting investment in the finance sector by reintroducing informed risk-taking into the system, cutting unnecessary red tape, driving more finance into public markets and actively helping international companies to set up in the UK.

This will position the UK as the number one destination for financial services companies by 2035, attracting business from around the world to harness the knowledge, talent and expertise in financial services hot spots from Glasgow to Leeds, and help the UK achieve an ambitious target to double the growth rate in UK net exports in these services over the next decade.

Unlocking retail investment

The UK has the lowest level of retail investment among G7 countries, meaning savers are not getting the best bang for their buck and UK businesses are starved of an important source of capital.

Stocks and shares have performed significantly better than cash savings accounts in recent decades. According to some industry estimates, more than 29 million adults across the UK have cash sitting in a low-interest rate account offering around 1% – while the average return for stocks and shares over the last 10 years is around 9%. If those savers invested £2000 today, they could have £12,000 in 20 years’ time. This compares to £2,700 if they held this money in a cash account offering 1.5% at the current interest rate, making them over £9,000 better off.

The industry-led ad campaign will help to explain the benefits of investing, and from April 2026 the Financial Conduct Authority will roll out Targeted Support – allowing banks to alert customers about specific investment opportunities to consider shifting money from a low-return current accounts to higher-performing stocks and shares investments.

Alongside a review of risk warnings on investment products to make sure they help people to accurately judge risk levels, this will guide people through a key barrier to investing – getting lost between large number of investment products on offer.

The Government will continue to consider reforms to ISAs and savings to achieve the right balance between cash savings and investment.

As a first step, the Government will allow Long Term Asset Funds to be held in Stocks & Shares ISAs next year, allowing more individuals to invest in assets that will support the UK’s future success, like innovative businesses and infrastructure – which can also deliver better returns.

Cutting red tape to attract investment and drive growth

Businesses will be welcomed to the UK with open arms and unnecessary financial red tape that stalls inward investment and slows growth will be drastically cut under the plans.

A new concierge service within the Office for Investment will harness UK networks globally to actively court international financial services companies, creating a one-stop-shop to promote the UK and provide tailored support to help businesses plan where to invest based on their needs – better harnessing specialist clusters across the country from asset management in Edinburgh, to Fintech in Leeds and Cardiff, and insurance in Norwich and Norfolk.

First-time buyers will be supported to get on the housing ladder, with the Bank of England allowing more lending at over 4.5 times a buyer’s income – which could help 36,000 more people buy a home over its first year and are helping Nationwide support an additional 10,000 first-time buyers by lowering income thresholds for its popular ‘Helping Hand’ mortgage from tomorrow. Simplified mortgage lending rules being considered by the Financial Conduct Authority will also make it easier for existing borrowers to remortgage, while the introduction of a permanent government-backed Mortgage Guarantee Scheme will secure the availability of high loan-to-value mortgage products in times of economic uncertainty.

The Financial Ombudsman Service will be returned to its original purpose as a simple, impartial dispute resolution service which quickly and effectively deals with complaints against financial services firms under today’s reforms instead of acting as a quasi-regulator, with its decisions more closely aligned to the Financial Conduct Authority’s rules. This takes action on a key business complaint about the unpredictable and inconsistent nature of redress action, boosting firms’ confidence to invest and innovate.

The Senior Managers and Certification Regime – which was originally intended to address failures in individual accountability and culture that contributed to the 2008 financial crisis – has been implemented in a way that creates unnecessary costs for business. Today’s reforms will help deliver a commitment to radically streamline the regime, cutting the burden on firms in half.

The Financial Conduct Authority’s Consumer Duty rules were also intended to raise standards in how finance companies treat retail consumers, but today affect the way businesses interact with other businesses – such as investment banks and asset managers. The Financial Conduct Authority will therefore assess how the Consumer Duty applies to these wholesale firms.

Freeing capital for investment

Capital will be freed up for banks to invest in the UK.

International banks and investors will benefit from greater certainty as the UK backs Bank of England reforms to raise the MREL threshold – the minimum amount of money and certain types of debt that a bank must have – to £25–40 billion, freeing up billions for lending and investment.

New Basel 3.1 banking rules will be introduced from January 2027 in a way that supports UK competitiveness, with UK-focused lenders given the clarity they need to plan and invest, while the requirements are delayed for the largest firms’ investment banking activities to ensure the UK is aligned with how other jurisdictions implement the rules.

The ring-fencing regime – which separates banks’ retail and investment banking activities – will be reformed. The Economic Secretary will lead a review looking at how changes can strike the right balance between growth and stability, including protecting consumer deposits.

This comes alongside a major review by the Financial Policy Committee of bank capital requirements. The review will inform work by the Government and Bank of England to ensure UK banks can compete internationally and provide vital investment in the economy whilst maintaining the international regulatory standards which are crucial to securing financial stability.

Promoting innovation and making the UK the Fintech capital of the world

Bespoke support will be provided to firms as they start, scale and list, and a pipeline of skills will support financial services firms to seize tomorrow’s opportunities for growth.

Financial business will receive intensive support through the start-up phase, helping them create a proven concept and attract growth funding.

A single regulator point of contact will also help these businesses through the scale-up phase, providing technical support to help understand requirements and speeding up regulator responsiveness.

Businesses will also benefit from better access to finance, with the Government recently uplifting the British Business Bank’s financial capacity to £25.6 billion.

The sector will also be supported by a better pipeline of skills, with a new Global Talent Taskforce helping attract top international talent to the UK, funding for 50 PhD students through the £187 million TechFirst programme to align their research with the needs of key players in the sector and a new financial services skills compact led by the Financial Services Skills Commission to ensure skills needs are met.

---

More information

• The Financial Services Growth and Competitiveness Strategy sector plan can be found on the Treasury’s website.
• Major financial services firms have agreed to support the campaign on retail investment: Barclays, NatWest, HSBC, Lloyds Banking Group, AJ Bell, Hargreaves Lansdown, Vanguard, Freetrade, Octopus Money, Robinhood UK, Trading 212, St James’s Place, Interactive Investor, Schroders and the London Stock Exchange. The Investment Association will provide the secretariat to the campaign. The Money and Pensions Service (MaPS), the Financial Conduct Authority (FCA) and HM Treasury will support the campaign in an advisory capacity.
• Figures for how much a saver could benefit from investing in stocks and shares are illustrative. They are not a guarantee of future returns.
• The UK will aim to double the real growth rate in net exports of financial services between 2025 and 2035 compared to the last decade (2014-2024). This would mean financial services net exports going from a compound annual growth rate of 1.37% to 2.7%, a cumulative increase in annual financial services net exports of 30% between 2025 and 2035.
• The full collection of Industrial Strategy sector plans can be found here.

Mike Reigner, Chief Executive Officer, Santander UK said:

We welcome the announcement of the Leeds Reforms today, which set out a positive vision for UK financial services. The changes outlined within the package are important steps to modernising the UK’s regulatory architecture, and will enable banks like ours to support our customers better and drive growth within the wider economy.

Sir Charles Roxburgh KCB, Chair, Lloyd’s said:

Today’s announcements by the Chancellor — focused on streamlining regulation, reducing burdens on firms, and enabling innovation and growth — are a real boost for the London insurance market. The Government’s clear support for our sector, and its recognition of specialty insurance and reinsurance as a Frontier Industry in its Modern Industrial Strategy, strengthen my confidence in Lloyd’s continued success at the heart of the market.

Hannah Gurga, Director General, ABI said:

The Leeds Reforms set a constructive and positive path to accelerating investment and growth in the UK economy. Closer alignment between the FOS and FCA, alongside a streamlined Senior Managers and Certification Regime, are critical steps towards delivering the clarity and regulatory environment our industry needs to thrive. It’s encouraging to see the vision set out in the Financial Services Growth and Competitiveness plan, and we look forward to working with the government, regulators and wider industry to help cement the UK’s status as the world’s leading financial centre.

António Simões, Group CEO, L&G said:

Driving long-term economic growth and prosperity requires action today and this package is another step in the right direction. Connecting investment capital to the most compelling opportunities, streamlining regulation whilst maintaining standards and protection, and support for consumers to save in ways that will better benefit them in the future is the kind of intervention we need. Now we must keep up the pace and ambition to turn these plans into tangible action that makes a difference on the ground and in people’s pockets.

Chris Cummings, Chief Executive, the Investment Association said:

The Leeds Reforms bring together an ambitious programme for financial services reform, which aims to modernise capital markets, cut regulatory red tape and broaden the benefits of investing to more people across the UK – in turn delivering investment-led growth and improved financial resilience for UK households. We called on the government to undertake bold reforms to strengthen the UK’s retail investment culture and they have done so. Better communication of the returns investing brings is key if we’re to empower more people to invest, and we’re proud to take part in the industry-led campaign to raise awareness of the benefits of investing and the review of risk warnings. We’re also extremely pleased that Long-Term Asset Funds will now be incorporated into the Stocks and Shares ISA – a reform we have long called for to broaden access to private markets.

Drazen Jaksic, Chief Executive Officer, Zurich UK said:

We welcome the Chancellor’s commitment to building a stronger, more resilient UK economy. The focus on sustainable growth, investment in innovation, and fostering long-term confidence is closely aligned with Zurich’s own priorities. As one of the UK’s leading insurers, we stand ready to work together with policymakers, customers, and partners to help deliver on these goals. We look forward to further engagement with the government to ensure the insurance sector remains robust, innovative, and able to meet the evolving needs of people and businesses across the UK.

David Postings, Chief Executive, UK Finance said:

Financial services are vital to the UK economy and I strongly welcome the Chancellor’s support for our sector as one of the UK’s global strengths.

We submitted a range of ideas to government to help support growth and the UK’s position as a global financial centre. Across many of these key areas the Chancellor has listened and delivered significant positive change.

Reforming the Financial Ombudsman Service, streamlining regulation in areas such as the Senior Managers and Certification Regime and the Consumer Duty, and supporting work by regulators to unlock capital for lending, will all help to drive investment and create a more pro-growth operating environment.

Having a regulatory system that allows for appropriate risk-taking is vital to ensuring the sector can better support UK businesses, consumers and the government’s growth mission.

Charlie Nunn, CEO, Lloyds Banking Group said:

We welcome the ambition shown in the Leeds Reforms to unlock investment, boost financial resilience, and support long-term economic growth. As a sector, we have a vital role to play in helping customers make the most of their money and in facilitating investment and innovation that benefits communities and businesses across the UK.

The press release issued by HM Treasury on 15 July 2025.

The Chancellor of the Exchequer has today announced the appointment of Oliver Holbourn as the new Chief Executive Officer of the National Wealth Fund, to lead it through its next chapter.

Oliver brings more than 25 years of experience across banking, strategy, and public financial investments including CEO roles at RBS International and, formerly, UK Financial Investments.

The National Wealth Fund is the government’s principal investor and policy bank. It is at the forefront of investing public money and mobilising private capital to help deliver on the government’s growth and clean energy missions.

Since its launch in October 2024, the National Wealth Fund has committed £2.5 billion, supporting 10,700 jobs. It also has expanded firepower, with £5.8 billion of additional capital to deploy. The NWF’s economic capital limit has been increased allowing it to take on greater risk, providing greater flexibility over its investments to support more projects to access private finance.

The Chancellor recently set this government’s Strategic Priorities for the National Wealth Fund over this Parliament. Under Oliver Holbourn’s leadership, the National Wealth Fund will enter a new phase of delivering these priorities: significantly increasing the amount of capital it deploys; expanding into new sectors; and trialling Strategic Partnerships with Mayoral Strategic Authorities to develop richer pipelines for regional investment.

This appointment followed a fair and open recruitment process, and he is expected to take up his post on 1 November.

Chancellor of the Exchequer, Rachel Reeves said:

I would like to congratulate Oliver on his appointment as CEO of the National Wealth Fund.

Oliver brings a wealth of private sector expertise and public service experience to this critical role. His expertise will be instrumental in delivering the government’s growth and clean energy missions.

I would like to thank John Flint for his leadership in successfully transforming the UK Infrastructure Bank into the National Wealth Fund and for laying a strong foundation for its future growth.

Incoming CEO of the National Wealth Fund, Oliver Holbourn said:

The National Wealth Fund has an important role to play in the economic success of the UK; so I am deeply honoured to be taking the reins as Chief Executive at such a pivotal time.

I am excited to get to work – using the NWF’s expertise and resources to partner with businesses, investors, mayoral combined and local authorities, and ministers and stakeholders to mobilise private investment alongside public sector finance. This will help drive sustainable economic growth across the UK and support the clean energy transition.

Chair of the National Wealth Fund, Chris Grigg said:

Oliver is the ideal person to lead the Fund into our next phase. He is passionately committed to our mission, brings a rare combination of senior leadership across both the public and private sectors, and has a background in banking, which is at the heart of what we do.

I look forward to working with Oliver to realise the full potential of our expanded mandate, delivering the Government’s ambitions for growth and clean energy, underpinned by the new Industrial Strategy.

Biography

Oliver Holbourn was until very recently the CEO of RBS International Holdings, a subsidiary of the NatWest Group, where he was on the Group Executive Committee for over four years.

With over 25 years of experience across investment banking, government investments, and strategic leadership. Oliver brings deep expertise in managing capital to deliver public value having previously served as Chief Executive Officer of UK Financial Investments (UKFI), where he was responsible for managing the government’s shareholdings in RBS, Lloyds and UK Asset Resolution, overseeing complex, high-value shareholdings on behalf of the UK taxpayer.

Earlier in his career, Oliver spent over a decade at Bank of America, latterly as Managing Director of Equity Capital Markets for the UK, Ireland, and South Africa. His career has been defined by a strong track record in financial leadership, capital markets, and public sector engagement.

The press release issued by HM Treasury on 15 July 2025.

Red tape swept away in biggest financial regulation reforms in a decade to boost homeownership and put more money into people’s pockets through the government’s Plan for Change.

• Nationwide set to widen access to its ‘Helping Hand’ mortgage from Wednesday, supporting 10,000 extra first-time buyers thanks to Chancellor’s Leeds Reforms.
• Reeves: Benefits of a thriving finance sector will be felt all over Britain

The Chancellor is expected to announce the biggest set of reforms to financial regulation in a decade at a summit of top finance executives in Leeds today, as part of the government’s mission to kick start economic growth and support more first-time buyers.

Red tape holding back the competitiveness of the UK financial sector will be swept away under the Leeds Reforms, addressing long-standing industry complaints.

The changes will see Britain become the top destination for finance firms over the next decade, attracting inward investment from across the globe to create good, skilled jobs around the country.

Prospective homeowners will be given a leg up onto the housing ladder under the plans, with regulators acting on the Chancellor’s push to regulate for growth.

More mortgages will be available at over 4.5 times a buyer’s income following Bank of England recommendations that some banks and building societies offer more high loan-to-income mortgages – creating up to 36,000 additional mortgages for first-time buyers over the first year.

This change means that Nationwide will be able to make its popular ‘Helping Hand’ mortgage available to people with lower incomes. From Wednesday, eligible first-time buyers can apply for the mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary – down from £55,000. This will support an additional 10,000 first-time buyers each year.

This comes alongside the creation of a permanent mortgage guarantee scheme, delivering on a Manifesto commitment and ensuring high loan-to-value mortgages continue to be available in times of uncertainty, as well as a review of Financial Conduct Authority lending rules that could allow a prospective buyers’ record of paying rent on time to show they can afford mortgage repayments.

The reforms will be unveiled in Leeds ahead of the Chancellor’s Mansion House speech this evening.

Speaking in the City of London, Chancellor of the Exchequer Rachel Reeves is expected to say:

This is the foundation of an economy, and a country, that is more active and more confident.

Where people and businesses look to the future and talk about hope about opportunity.

Assured of their own capability, and of the ability of our country to boldly face the challenges that lie ahead.

And certain of the prize if they succeed.

Of higher wages and higher living standards.

The renewal of Britain in every home and every high street.

To put it simply: a Britain that is better off.

She will add on homeownership:

I welcome the recent changes the Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA and FCA are implementing immediately.

With an instant impact for consumers, such as Nationwide offering its ‘Helping Hand’ mortgage to more first time-buyers – supporting an additional 10,000 each year.

She will conclude:

Today, I have placed financial services at the heart of the government’s growth mission.

Recognising that Britain cannot succeed and meet its growth ambitions without a financial services sector that is fighting fit and thriving.

And I have been clear on the benefits that that will drive.

With a ripple effect that will drive investment in all sectors of our economy and put pounds in the pockets of working people.

The press release issued by HM Treasury on 14 July 2025.

The world’s largest fund of its kind will support vulnerable children and families across the country.

• Chancellor launches new £500m Fund to break down barriers to opportunity for up to 200,000 vulnerable children and young people and deliver Plan for Change.
• World’s largest fund of its kind will boost pupil achievement and could fund programmes to reduce reoffending or provide specialist workers for children struggling with exclusion, mental health or crime.
• Better Futures Fund will run for ten years, with plans to raise another £500 million from local government, social investors, and philanthropists on top of government’s funding
• The launch is backed today by groups including Save the Children UK, The King’s Trust and Oxford University’s Blavatnik School of Government.

Struggling and vulnerable families and children are to be given a better start in life after a new government fund was announced today (Monday 14 July), which will provide them with the support and funding needed to access a better education, a safe home, and the caring supportive environment they need to flourish.

The Better Futures Fund will support up to 200,000 children and their families over the next ten years by bringing together government, local communities, charities, social enterprises, investors, and philanthropists to work together to give children a brighter future.

It could fund providing support in schools to improve attendance, behaviour and overall achievement of pupils, intervening to free children from a life of crime, and offering employment support to secure their futures.

The fund, which is the largest of its kind in the world, will be launched by the Chancellor of the Exchequer Rachel Reeves at a visit to a school today in Wigan, hosted by the charity AllChild. It could fund providing support in schools to improve attendance and behaviour, intervening to free children from a life of crime, and offering employment support to secure their futures.

By investing in early support to tackle challenges like school absence, addiction and re-offending, the fund will help give children the stability and opportunity they need to thrive – delivering on a key part of the Prime Minister’s Plan for Change to give every child the best start in life.

It comes ahead of the government hosting the first Civil Society Summit this week, where the government will set out a comprehensive plan on how this government will partner with experts from outside the traditional corridors of power to create solutions that work for real people – all through the principles of fairness, collaboration and trust.

Chancellor of the Exchequer Rachel Reeves said:

I got into politics to help children facing the toughest challenges. This fund will give hundreds of thousands of children, young people and their families a better chance. For too long, these children have been overlooked. Our Plan for Change will break down barriers to opportunity and give them the best start in life.

Culture Secretary Lisa Nandy said:

This groundbreaking Better Futures Fund represents a major step in partnering with the impact economy, which has long played an important role in strengthening communities and driving inclusive growth.

As part of the Plan for Change, we’re bringing together government, local authorities, charities, social enterprises and philanthropists to create a powerful alliance that will transform the lives of vulnerable children and young people.

We owe them the best start in life. Together we will break down barriers to opportunity, ensuring those who need support most aren’t left behind and have the chance to reach their potential.

Social Outcomes Partnerships have already been used with success across the UK, with over 180 commissioners using the model across the country. The Greater Manchester Better Outcomes Partnership (GMBOP), for example, works with young adults in the Greater Manchester area who are at risk of homelessness.

AllChild’s projects have already halved persistent school absences, and 80% of children have improved emotional wellbeing. Other programmes like the Skill Mill offer paid work experience and qualifications, reducing reconviction rates from 63% typically to 8% and three quarters of those in the programme progress to further employment, education or training.

This fund is a big step in the government’s work with the impact economy – unlocking extra resources from philanthropy, social investors and businesses to tackle urgent social challenges. Today’s announcement comes as the government’s Child Poverty Strategy is to be published in autumn to ensure it delivers fully funded measures that tackle the structural and root causes of child poverty across the UK.

The launch is backed today by groups including Save the Children UK, The King’s Trust and Oxford University’s Blavatnik School of Government.

Today’s announcement is informed by consultation with the Social Impact Investment Advisory Group and other representatives from civil society, purpose-driven business, and local government. Over the coming months Government will build on this and develop a strategic approach to working with the impact economy, who have long played an important role across the UK economy in unlocking innovation, driving inclusive growth and strengthening community resilience.

Chief Secretary to the Treasury Darren Jones said:

Partnering with impact capital to tackle child poverty was a personal priority for me coming into government – which is why I set up the Social Impact Investment Advisory Group to advise on the development of this brilliant fund, which we’ve been delighted to support as a government. I’d like to thank Dame Elizabeth Corley for chairing the group and all the members for their hard work.

Louisa Mitchell MBE, Chief Executive Officer, AllChild said:

I warmly welcome the government’s Better Futures Fund as a pivotal step toward transforming how we support children and families across the country. It’s vital that children engage with the right support and opportunities, at the right time, in the right way. Holistic support that is rooted in each child’s local community, builds on their strengths, and places trust and relationships at the heart of delivery.

I hope this fund will be a catalyst for a new way of working – one which prioritises prevention, shared accountability for locally identified outcomes, and genuine cross-sector partnerships. This is how we can ensure every child no matter where they live has the support and opportunities they need to flourish.

Richard Rigby, Head of UK Government Affairs, The King’s Trust said:

At The King’s Trust, we know that timely support can change the course of a young person’s life. Potential is everywhere but opportunity is not. The Better Futures Fund is an investment in the potential of young people who are too often left behind. We welcome this commitment to early intervention and collaboration with organisations like ours to tackle inequalities and help young people build brighter, more secure futures. By getting behind young people, we can all help to make the UK a healthier, wealthier, more positive and cohesive place.”

Further details on the fund will be set out in due course. It will be delivered by the Department for Culture, Media and Sport.

The press release issued by HM Treasury on 19 June 2025.

Alex Depledge MBE appointed by the Chancellor as first ever Entrepreneurship Advisor appointed to Treasury to address barriers for high growth businesses.

Entrepreneurs will now have a direct line to government and will benefit from additional expertise within the Treasury as the Chancellor has appointed Alex Depledge MBE as her Entrepreneurship Adviser.

Over the coming months, Alex will advise the Chancellor on the government’s entrepreneurship landscape, focusing on addressing the key barriers faced by businesses seeking to start up and scale up in the UK.

Reducing barriers for business, entrepreneurs and investors is key to boosting economic growth and delivering the government’s Plan for Change.

Alex brings with her extensive entrepreneurship experience, having successfully built several businesses from the ground up, including Resi and Helpling, formerly known as Hassle.com. She knows what it takes to build a successful business and will be in a position to offer invaluable advice to boost growth for the businesses of the future.

The government has already taken significant steps to support start-ups since taking office. We have extended the Enterprise Investment Scheme and Venture Capital Trust schemes to 2035 and increased R&D funding to £22.6 billion per year by 2029/30 to support the growth even more innovative businesses of the future, this support will allow them to invest and take on new staff, putting more money into working people’s pocket.

Chancellor of the Exchequer, Rachel Reeves, said:

Start-ups, scale-ups and other small businesses drive the innovation that keeps Britain growing, delivering our Plan for Change.

We have a long list of successful start ups, scale ups and small businesses across the UK – with the greatest density of scale ups among the seven major industrial countries in the G7.

Having Alex on the team will bring invaluable expertise with her experience building successful businesses from the ground up, and I look forward to working with her.

Alex Depledge MBE, said:

I’m honoured to be appointed as the Chancellor’s first-ever Entrepreneurship Advisor, a ground-breaking move that puts high-growth businesses at the heart of economic thinking.

It’s the first time an entrepreneur has held this role, and it signals a bold commitment from government to back the scale-ups and innovators powering the UK forward.

There are over 34,000 scale-ups in the UK — just 0.6% of SMEs — yet they generate a staggering £1.4 trillion in turnover, contributing 55% of all SME revenues.

This is a chance to rewrite the playbook on how we support entrepreneurs, and I’m here to make sure we take full advantage of it.

The press release issued by HM Treasury on 19 June 2025.

10 Year Infrastructure Strategy published today (19 June) will deliver on the Government’s growth mission, as part of the Plan for Change, transforming how infrastructure projects are planned and delivered.

The soaring maintenance backlog which has left our schools, colleges, hospitals and courts in a state of disrepair will be turned around as part of the government’s landmark 10 Year Infrastructure Strategy published today (19 June).

The Strategy sets out a long-term plan for how the government will invest in infrastructure and ensure that funding is spent effectively and efficiently, marking a new approach to how projects are planned and delivered.

This government is committed to doing things differently to deliver infrastructure and fix the failures of the past, having accepted all of the James Stewart Review’s recommendations on HS2. The Strategy provides the certainty and stability needed to attract investment, boosting British supply chains and jobs, and takes a joined-up view to improve planning and delivery across all types of infrastructure.

It will also encourage inward investment by providing a long-term vision that gives investors the confidence and certainty they need to truly commit funding to projects, creating job opportunities and boosting living standards for people across the country, delivering on the Plan for Change.

These plans are backed by at least £725 billion of government funding over the coming decade, from which at least £9 billion will be allocated in 2025-26 to address the critical maintenance needs of health, education and justice estates, rising to over £10 billion per year by 2034-35.

This will increase access to quality, modern public services, following years of underinvestment, and deliver significant real-world benefits for patients, students, staff, and communities.

Chancellor of the Exchequer, Rachel Reeves said:

Infrastructure is crucial to unlocking growth across the country, but for too long investment has been squeezed. Crumbling public buildings are a sign of the decay that has seeped into our everyday lives because of a total failure to plan and invest.

We’re not just fixing buildings – we’re enhancing public services, improving lives and creating the conditions for sustainable economic growth in communities throughout the UK.

This will deliver the decade of national renewal we promised Britain, and fulfil our Plan for Change goals to kickstart economic growth, and build an NHS fit for the future.

The 10-year maintenance investment will deliver tangible improvements for people across the country:

• Health: Over £6 billion per year will create safer hospital environments across England with reduced waiting times, improved patient outcomes, and better working conditions for NHS staff. By eliminating RAAC concrete and addressing critical infrastructure risks, patients will receive care in modern facilities that support rather than hinder their treatment and recovery.
• Education: Investment in school and college maintenance will rise to almost £3 billion annually, transforming learning environments across England and providing safe and high-quality spaces for children and young people, improving educational outcomes and breaking down barriers to opportunity.
• Justice: At least £600 million investment each year will improve safety and security in prisons across England and Wales, reducing incidents and creating environments more conducive to rehabilitation. Enhanced court facilities will help reduce backlogs and improve access to justice.

This strategic investment approach will help break the cycle of deterioration and emergency repairs that has characterised public infrastructure maintenance for decades. By adopting a preventative approach, services will face fewer disruptive closures, operate more efficiently, and deliver better value for taxpayers in the long term.

The programme directly supports the government’s mission to build an NHS fit for the future, with healthcare facilities that enable earlier diagnosis and better treatment outcomes. It also advances the mission to break down barriers to opportunity by ensuring all children have access to quality learning environments, regardless of where they live.

To support delivery of this strategy, the government is funding at least £725 billion for the country’s infrastructure over the next decade, ensuring that public infrastructure capital funding continues to grow in line with inflation after the current Spending Review period. This funding certainty will help government and industry plan further ahead, allowing for more efficient delivery of UK wide infrastructure.

The National Infrastructure and Service Transformation Authority (NISTA), established by the government this year, will work with partners across government and industry to effectively implement the strategy across the whole of the UK. NISTA will periodically review the progress made and work with devolved governments to ensure that infrastructure strategy across the UK is joined up.

Becky Wood, Chief Executive Officer of NISTA, said:

This investment is a welcome part of the 10 Year Infrastructure Strategy and will help us to address some of the challenges that our key public services have faced over recent years.

Strategic preventative maintenance based on longer-term plans is a more effective approach than making decisions in the absence of certainty about the future – and will ensure our vital public services remain resilient and fit for purpose.

By approaching replacement and maintenance of our infrastructure in an informed and systematic way, we can target interventions effectively and plan properly for the future.

---

More information

The 10 Year Infrastructure Strategy outlines the government’s comprehensive approach to infrastructure investment across all sectors.

This funding commitment follows recommendations from the National Audit Office on the need for long-term, sustainable maintenance funding.

The funding in the 10YIS includes:

• £1 billion to carry out maintenance on key transport infrastructure, including crumbling bridges, flyovers and crossing.
• £590 million to start work on the Lower Thames Crossing.
• £16 billion of new public investment will help build over 500,000 new homes, which will also unlock over £53bn of private investment.

Tracy Blackwell, Chief Executive Officer, Pension Insurance Corporation said:

The government’s 10-year infrastructure strategy is a good step in the right direction – providing clarity, ambition, and commitment to long-term investors in UK infrastructure, like Pension Insurance Corporation. We welcome the clearer pipeline of projects and a renewed focus on social value, something that is of real importance for local people. The Government’s wider efforts on planning reform, transparent delivery bodies, and reducing the regulatory burden will supplement this new strategy – offering a much more investable environment across the UK.

Lord O’Neill of Gatley said:

The Strategy set out today is a serious plan for addressing the long-running challenges that have prohibited investment for years. The government needs to be transparent in how it selects its infrastructure investments to drive growth and this Strategy is a big step forward in doing that. I look forward to further detail on the government’s plans for Northern Powerhouse Rail.

Keith Lawson, Executive Vice President, Jacobs said:

Jacobs welcomes the 10-Year Infrastructure Strategy as a testament to the Government’s commitment to driving economic growth, empowering communities, and providing market certainty. We are excited about the potential for this ambitious strategy to attract new talent to our sector, embrace new technologies, and promote the UK’s ability to compete globally.

By investing in public services, transport, and clean energy, we are not only addressing today’s needs but also laying the foundation for a resilient future. The combined efforts of the Spending Review, NISTA, and the 10-Year Infrastructure Strategy provide the stability, coordination, and long-term vision necessary for efficient infrastructure delivery.

At Jacobs, we are committed to partnering with the Government to deliver these vital projects, creating lasting positive impacts across the UK.

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

Everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment this winter.

Nine million pensioners to receive Winter Fuel Payments this winter as all pensioners in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment. This extends eligibility to the vast majority of pensioners, with around 9 million, or over three quarters, benefitting. This threshold is well above the income level of pensioners in poverty and is broadly in line with average earnings, balancing support for lower income pensioners with fairness to the taxpayer

This change will cost around £1.25 billion in England and Wales and see means-testing of the Winter Fuel Payment save around £450 million, subject to certification by the Office for Budget Responsibility (OBR) compared to the system of universal Winter Fuel Payments. The costs will be accounted for at the Budget and incorporated into the next OBR forecast. The Chancellor will take decisions on funding in the round at that forecast to ensure the government’s non-negotiable fiscal rules are met. This will not lead to permanent additional borrowing.

No pensioner will need to take any action as they will automatically receive the payment this winter, and for those with incomes above the threshold it will be automatically recovered via HMRC. The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter. Over 12 million pensioners across the United Kingdom will also benefit from the Triple Lock, with their State Pension set to increase by up to £1,900 this parliament.

Chancellor of the Exchequer Rachel Reeves said:

Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.

But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.

Pensioners above the £35,000 threshold will have the full amount of the Winter Fuel Payment they received automatically collected via PAYE, or via their Self-Assessment return. No one will need to register with HMRC for this or take any further action.  Pensioners who want to opt out and not receive the payment at all, will be able to do so, with details to be confirmed.

Making these changes now gives people certainty and ensures that payments can be made in time for this winter. Payments will be better targeted than before 2024-25 when they were previously paid to all pensioners regardless of their income, meaning those on lower and middle incomes will still receive the help they need, ensuring fairness for both pensioners and taxpayers.

Approximately 2 million individuals in England and Wales over State Pension age have taxable incomes above £35,000.

---

More information

• Eligibility is based on a person’s age and place of residence during the qualifying week (the third full week of September). For winter 2025/26, the qualifying week will be 15 to 21 September 2025.
• A person needs to have reached State Pension age by the end of the qualifying week to be eligible.
• Winter Fuel Payments are worth £200 per household, or £300 per household where there is someone aged 80 or over. Shared payments are made to pensioners not on an income-related benefit.
• The payment will be recovered from individuals via HMRC based on their individual taxable incomes. There will be no need for household incomes to be aggregated.
• It will be recovered via PAYE for the vast majority, or in their Self-Assessment tax return for the minority who file and pay their taxes in this way. HMRC will work closely with representative bodies to ensure the process is as simple as possible with clear guidance for taxpayers.
• For those who would like to opt out from receiving the Winter Fuel Payment, DWP will develop a simple system to enable individuals to do so, removing the need for HMRC to recover the payment. Further information will be on GOV.UK in due course.
• The government will be publishing an equalities analysis alongside the legislation and a Tax Information and Impact Note at Budget.

Further background

• As of winter 2024/25, Winter Fuel Payments were restricted in England and Wales to pensioner households receiving Pension Credit or certain other income-related benefits.
• It is worth £200 for eligible households, or £300 for households with someone aged 80 or over. It is a non-contributory, household payment to support pensioners during the colder months.
• From 2025/26 Winter Fuel Payments will be payable in England and Wales at £200 for households including someone between State Pension age and 79, and £300 for households including someone aged 80 or over. Where the household is not getting an income related benefit, such as Pension Credit, a shared payment will be made – e.g. a couple, each under 80, not on Pension Credit will receive a payment of £100 each.
• Winter Fuel Payments are transferred in Northern Ireland. The policy area is devolved to Scotland. The Scottish Government and the Northern Ireland Executive will both receive a mechanical uplift in their funding as a result of this change in England and Wales.

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

Working people in cities and towns from Sunderland to Solihull will benefit from the biggest investment in regional transport, as every part of the country prospers under Plan for Change.

Working people across the North, the Midlands and the South West will benefit from the biggest ever investment in buses, trams and local train infrastructure in city regions as the Chancellor today promises the renewal of Britain to make all parts of the country better off.

In a speech in Greater Manchester, Reeves is expected to say that “a Britain that is better off cannot rely on a handful of places forging ahead of the rest of the country”, adding that the “result of such thinking has been growth created in too few places, felt by too few people and wide gaps between regions, and between our cities and towns”.

Reeves will say that the Spending Review next week will take different choices, with investment in a “new economic model – driven by investment in all parts of the country, not just a few”.

She will unveil the first investment announcements from the Spending Review, with £15.6 billion of funding for local transport projects in England’s city regions – including South Yorkshire, the North East, the East Midlands and Tees Valley. The funding – a more than double real-terms increase in capital spending on local transport in city regions by 2029/30 compared with 2024/25 – will empower local leaders to invest in transport projects that will make a difference to their local area.

Transport Secretary Heidi Alexander, said:

Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change.

For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of Government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off.

This long-overdue investment outside of London and the South East will see projects like the Metro extension linking Washington to Newcastle and Sunderland and the renewal South Yorkshire’s tram network linking employment and housing areas in Sheffield and Rotherham get off the ground – creating jobs, better commutes, bigger labour markets and more opportunity.

The game-changing funding comes ahead of next week’s Spending Review when the Chancellor will set out how this government is investing in the country’s future and the priorities of working people to make every part of Britain better off.

The five-year settlements will mean the Mayor of West Yorkshire can commit to delivering the West Yorkshire Mass Transit, which will be fully integrated with cycling, walking, bus and rail, making journeys quicker, more accessible and more reliable across the region.

The funding will also mean the Mayor of the West Midlands can build a metro extension to Birmingham’s sports quarter, making a start on his ambitions to deliver mass transit from East Birmingham to North Solihull.

It will also allow the Mayor of Greater Manchester to transform the Metrolink tram network, with new stops in Bury, north Manchester and Oldham and a Metrolink extension to Stockport town centre.

The Chancellor is also expected to confirm “a step change in how government approaches and evaluates the case for investing in our regions” following a review of the Treasury’s Green Book and how it is used, “to make sure that this government gives every region a fair hearing when it comes to investments”.

The full conclusions of the Green Book review will be published on June 11, alongside the wider Spending Review.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:

This government’s decision to back major local transport projects with serious, long-term investment will be critical to driving regional growth. The economic revival of Greater Manchester, enabled by sustained investment in the tram network in particular, has already begun to close the productivity gap with London. To build on that success and replicate it across all our regions in the North, we need to see key projects delivered – including the extension of the Metro to Washington, the replacement of the Sheffield tram fleet, and the extension of Metrolink to Stockport.

Too many times in the past, a trade-off was made – due to limited funding – between connectivity within and between our regions. The spending rules adopted last autumn mean this government can invest in both at the same time, unlocking far greater productivity gains than prioritising one at the expense of the other.

Jonny Haseldine, Head of Business Environment at the British Chambers of Commerce, said:

The pathway to the strong and consistent growth the UK economy needs has to come through investment in our regions.

That means developing regional infrastructure, including transport projects and grid connectivity, improved rail capacity and electrification of key sections of the network.

These projects can then give firms involved in the supply chains real confidence to start planning and investing in their local economies.

But it is critical that no corner of the UK gets left behind and regional development works in alignment with national goals.

---

More information

Mayoral breakdown of Transport for City Regions funding:

Mayoral Combined Authority	Funding allocation (27/28-31/32) (1)	Projects likely to be taken forward by mayors
West Midlands	£2.4 billion	Metro extension connecting Birmingham City Centre to new sports quarter, unlocking £3bn investment from private investors. This is the first phase of new mass transit from East Birmingham to North Solihull.
West Yorkshire	£2.1 billion	Spades in the ground to start building West Yorkshire Mass Transit by 2028, with aim for first services by mid-2030s. Transforming six transport corridors in West Yorkshire not covered by the mass transit routes, including through new bus stations at Bradford and Wakefield
Greater Manchester	£2.5 billion	Major infrastructure projects to unlock new homes, jobs and better connect communities, including growing and transforming the Metrolink tram network, with new tram stops in Bury, Manchester and Oldham and Metrolink extension to Stockport. A fully electric Bee Network, with zero emission public transport network across bikes, bus and tram by 2030, including purchase of 1,000 new electric buses.
South Yorkshire	£1.5 billion	£530m to renew the tram network, providing a fleet of new, replacement vehicles, modernising tram stops, as well maintenance to improve reliability. £350m to reform South Yorkshire’s buses, with franchised buses operating in Sheffield, Doncaster and Rotherham by 2027 and across the whole of South Yorkshire by 2029.
Liverpool City Region	£1.6 billion	£100m for 3 new bus rapid transit routes, to the Liverpool John Lennon Airport, Everton stadium and Anfield. Buying a brand-new fleet of buses for the city region’s franchised bus network, beginning with St Helens and the Wirral in 2026 and then Sefton, Knowsley, North and South Liverpool in 2027.
North East	£1.8 billion	Metro extension linking Newcastle and Sunderland via Washington, serving one of the largest advanced manufacturing zones in the UK.
West of England	£0.8 billion	£150m to improve rail infrastructure across the region, including funding to support WECA’s ambitions for increased frequency of services between Brabazon and the city centre. £200m for Mass transit development between Bristol, Bath, South Gloucestershire and North Somerset.
Tees Valley	£1.0 billion	£60m for the Platform 3 extension at Middlesbrough station, unblocking the local network.
East Midlands	£2.0 billion	Designing a new mass transit system to connect Derby and Nottingham, encompassing road, rail and bus improvements across the Trent Arc corridor.

(1): Some of this funding will be brought forward to 2025/26 and 2026/27 to ensure communities see the benefit of this significant investment even earlier.

Ben Plowden, Chief Executive of Campaign for Better Transport, said:

It’s great to see the Government investing in the local transport infrastructure that will tangibly improve the lives of millions across our city regions and particularly good to see trams being prioritised in several areas. Fast, frequent and reliable public transport is essential to unlocking opportunity and driving inclusive economic growth.

We hope to see similar commitments to revenue funding in next week’s Spending Review, alongside support for local authorities to plan, deliver and run the high-quality transport services their communities need.

Mark Casci, Head of Policy and Representation at West and North Yorkshire Chamber of Commerce, said:

This commitment to fund mass transit in West Yorkshire can be a game changer for the region.

West Yorkshire is home to a world-class business community, but the region is held back by poor connectivity which impacts upon our productivity.

By delivering this much needed infrastructure upgrade to the region, West Yorkshire can finally punch its weight and deliver enhanced returns for UK PLC.

The press release issued by HM Treasury on 2 June 2025.

• New report commissioned by Chancellor, Rachel Reeves, reveals £multibillion price British taxpayers paid for reckless handling of Covid contracts
• Previous government failure to test defective PPE leaves millions of taxpayer pounds unrecoverable
• It comes as Reeves drives work to recover £468 million for communities and public services, underlining commitment to investigate and account for every penny spent during the pandemic under the Plan for Change

Failed pandemic-era PPE contracts cost the British taxpayer £1.4 billion, as an interim report commissioned by Chancellor, Rachel Reeves, lays bare the scale of the scandal.

The Covid Counter Fraud Commissioner’s report reveals the price the British public has paid for undelivered contracts which saw taxpayer cash squandered on unusable PPE.

The last government’s over-ordering of PPE, and delays in checking it, mean that £762 million is unlikely to ever be recovered. These failures saw substandard PPE – gowns, masks and visors – not inspected for two years, meaning public money could no longer be recouped.

Now Reeves is going further and faster to recover the £468 million that could still be recovered from suppliers – money which the government will put back into communities and public services including the NHS, police and armed forces.

Recovery action has so far resulted in £182 million being returned to the public purse, and PPE suppliers referred to the National Crime Agency for suspected fraud.

Chancellor Rachel Reeves said:

The country is still paying the price for the reckless handling of Covid contracts which saw taxpayer pounds wasted and criminals profit from the pandemic.

This investigation and plan to recover public money underlines our commitment to ensure that every penny spent during the pandemic is fully accounted for.

We have always been clear that money poorly spent or fraudulently claimed belongs to the British people. This Government will bring criminals to justice and put taxpayer’s money back where it belongs – in the NHS, police and armed forces.

Most of the wasted money went on surgical gowns. Over half (52%) were non-compliant, but because much of the defective PPE was not quality tested until after warranties had expired, there is little chance of recovering the money.

This interim report marks the end of Phase one of Commissioner Tom Hayhoe’s investigation– scrutinising PPE contracts. The Commissioner has now begun work on Phase two, which will see it investigating fraud and error in other pandemic spending programmes such as furlough, bounce-back loans, Business Support Grants and Eat Out to Help Out.

The Commissioner will provide a full update in a final report to the Chancellor at the conclusion of his term in December 2025.