Tag: Treasury

The press release issued by HM Treasury on 10 April 2025.

The Chancellor Rachel Reeves has confirmed the reappointment of Nikhil Rathi as Chief Executive of the Financial Conduct Authority (FCA) for a second five-year term until September 2030.

Nikhil Rathi will lead the FCA as it continues to drive reform to make the UK the best place to do business by removing unnecessary, outdated and duplicate regulations – whilst ensuring consumers are protected from detriment and can be confident in markets.

Last December, the Prime Minister and Chancellor set the FCA the challenge of coming up with ideas to boost economic growth.  Since then, the FCA, under the leadership of Nikhil Rathi, has stepped up to this challenge to come up with a series of policy changes to boost growth, which will have benefits in the real economy. This includes making it easier for people to get on the housing ladder through changes to the rules on mortgages and extra support to help financial services firms start and grow in the UK.

The Chancellor has since doubled down on the agenda to reform regulation with the radical Regulatory Action Plan. This cuts red tape by pledging to reduce the administrative cost of regulation on business by a quarter, to make Britain the best place in the world to do business.

The government started this programme of regulatory reforms by merging the Payment System Regulator primarily into the FCA to allow a more coordinated and streamlined approach, with a payments sector that promotes innovation and competition.

Chancellor of the Exchequer, Rachel Reeves, said:

Nikhil Rathi has been crucial in this government’s efforts to reform regulation so it supports growth and boosts investment – I am delighted he will be continuing his leadership of the FCA. We want the FCA to go further and faster to deliver this government’s Plan for Change and we look forward to continuing to work together to achieve this.

Chief Executive of the Financial Conduct Authority, Nikhil Rathi, said:

I am honoured to be reappointed by the Chancellor. The FCA does vital work to enable a fair and thriving financial services sector for the good of consumers and the economy. I am proud of the reforms we have delivered to support growth, bolster operational effectiveness, set higher standards and to keep our markets clean and open. While we must go further and faster in this age of volatility, the UK is well placed as a major international financial centre.

Chair of the Financial Conduct Authority, Ashley Alder, said:

I am delighted Nikhil has been reappointed. He’s the right leader in testing times. His exemplary first term as chief executive has ensured the FCA is an organisation transformed. We’ve set a new standard for consumer protection, made it easier for businesses to access capital and quicker for firms to get authorised. That provides the solid foundation to deliver our ambitious new strategy – to deepen trust, rebalance risk, support growth and improve lives.

The government will continue to work closely with regulators to ensure they are regulating for growth, not just risk.

The FCA will publish its second report on how it has embedded its growth and competitiveness strategy later this summer.

In the meantime, the FCA is continuing to examine the financial services regulatory landscape and working to eliminate any unnecessary rules that hold back growth.

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

£400m of trade and investment wins are set to boost the British economy and deliver economic growth and security for working people as the government vows to back British business through uncertain global times.

Today (Wednesday 09 April), the Chancellor and Business and Trade Secretary took part in the 13th UK-India Economic and Financial Dialogue (EFD), marking a significant moment in unlocking opportunities as the two countries look to strengthen economic ties and secure a Free Trade Agreement and Bilateral Investment Treaty.

Rachel Reeves, Chancellor of the Exchequer, said:

In a changing world, it is imperative we go further and faster to kickstart economic growth. We have listened to British businesses, which is why we’re negotiating trade deals with countries across the world, including India, so we can support them and put more money in people’s pockets as part of our Plan for Change.

Our relationship with India is longstanding and broad and I am delighted with the progress made throughout this dialogue to develop it further.

Today’s EFD was Chancellor Reeves’ first with India. It saw the signing of a joint statement unlocking cooperation across a range of business sectors, including defence, financial services, education and development, and strengthened governmental collaboration across growth, economic resilience and international financial issues.

The government is working to make Britain the best country in the world to do business, already bringing in more stability, offering an open trading economy and creating the right conditions for investment.

At the London Stock Exchange today, the Chancellor and her Indian counterpart set out plans to generate growth, improve our Financial Services ties and deepen policy cooperation on the UK Industrial Strategy, tax, sustainable finance and illicit finance.

The total commercial package from this dialogue is made up of new announcements worth £128m in export deals and investments, as well as recent deals worth £271m. This includes:

• Paytm, India’s largest digital payment app, announced plans to invest in the UK to accelerate access to affordable digital payments and credit for small businesses.
• Barclays Bank PLC India announced on 18 March a further capital injection of over £210M into its Indian operations, affirming its long-term commitment to India. This capital investment will grow its businesses across the Investment and Private Banking in India.
• HSBC Bank will expand its presence from the current 14 cities to 34 cities in India. This significant expansion will enable the bank to cover approximately 95% of India’s wealth market, reinforcing their commitment to India.
• Standard Chartered Bank today announced that it has shifted to larger office premises at GIFT City, reinforcing its long-term commitment to India’s premier international financial services hub.
• Mphasis, an Indian tech business, are setting up a quantum centre of excellence in London and exploring an office in Nottingham which will support 100 jobs.
• British International Investment Plc (BII) is committing $10m to the agritech start up, Grow Indigo, to pilot an innovative carbon credit programme to promote regenerative agricultural practices in India.
• WNS, a global digital-led business transformation services company founded in India with a $2.7bn market cap, will expand their London HQ presence with a new office and open a state-of-the-art AI design hub to expand the UK’s AI and digital talent pool to drive growth and create jobs.
• Revolut announced that they are gearing up for launch in India later this year, following authorisation this week from Reserve Bank of India.
• UK firm Wise announces plans to open a new office in Hyderabad, India as part of broader mission to transform the trillion-pound international money movement market.
• Prudential’s announcement of launching their first fully owned global services hub in Bengaluru and third joint venture in India establishing a standalone health insurance business.
• British International Investment invest $15m investment in vehicle dedicated to investing in India based on inclusion-focused early-stage companies.
• The UK welcomes India paving the way to allow Indian companies to list internationally and exploring listing at the London Stock Exchange. The India-UK Financial Partnership published its report ‘Catalysing Bilateral Growth: Connecting India and the UK’s Equity Capital Markets report’. The report aims to lay the foundation for advancing capital account connectivity and strengthening confidence in both markets and will be presented following the EFD.
• Coventry University announced today that it is set to become the first English university to be granted a licence to open a campus in India, as UK universities are being granted licences to open a campus in India’s new GIFT city. And the London School of Economics announced that Tata Trusts is continuing its enduring partnership with LSE by awarding a Corpus Grant to support scholarships for Indian students at the School.
• Agreement for both sides to continue excellent collaboration as co-chairs of the G20’s Framework Working Group and to work closely together to promote discussion and build consensus around responses to risks to the global macroeconomic outlook.
• New ambitions set for joint investments in green enterprises, tech start-ups and climate adaptation building on the success of the UK-India Green Growth Equity Fund (GGEF).

Secretary of State for Business and Trade Jonathan Reynolds and Minister Sitharaman also today hosted a business roundtable, bringing together key leaders from the financial and professional business services sectors including Tide, HSBC, Aviva, Vodafone, WNS, and Mizuho International. Attendees recognised the strength of the economic relationship between the UK and India, as well as the opportunity for closer collaboration – including through an ambitious trade deal.

Areas for collaboration on defence were also identified, as both sides looked forward to the finalisation of the India-UK Defence Industrial Roadmap, set to strengthen ties between industrial sectors and integrate supply chains.

Secretary of State for Business and Trade Jonathan Reynolds said:

I was delighted to meet with Minister Sitharaman, hear from businesses, and discuss how we can strengthen the strong economic bonds between our two nations.

Both the UK and India are committed to delivering economic growth and giving businesses the confidence and stability they need to expand.

That is why we are continuing to negotiate towards an ambitious trade deal that unlocks opportunities both at home and abroad for British businesses and supports our Plan for Change.

The UK and India have strong economic, cultural, and education links, with India being a key trading partner for the UK with over £40bn worth of UK-India trade last year alone. The UK’s long-standing programme of EFDs with India is the critical forum to deliver continuous economic gains over time.

The EFD follows a recent visit to Delhi by Jonathan Reynolds, the Secretary of State for Business and Trade, which relaunched UK-India trade negotiations.

Keshav R. Murugesh, Group CEO, WNS said:

The UK and India stand as natural partners, and this re-energized trade and investment relationship marks a pivotal stride in our already strong alliance. The potential before us is immense. By formalizing our collaboration in pioneering fields like AI, we will not only fuel innovation and generate high-skilled jobs in both our nations, but also solidify our joint leadership in this transformative era. This is indeed a thrilling chapter for the UK-India partnership.

Bill Winters, Group Chief Executive, Standard Chartered said:

In the face of global developments, it is imperative that we think creatively and act in partnership. The UK and India’s focus on strengthening financial ties and deepening cooperation between our governments, regulators, industry leaders and experts, plays an important role in driving economic progress, setting global benchmarks for stability and innovation and paving the way for greater trade and investment in both countries.

The Rt Hon The Lord Mayor of London, Alderman Alastair King,

We had a highly constructive discussion with Hon. Minister Nirmala Sitharaman and The Rt. Hon. Jonathan Reynolds, joined by leaders from across the financial services sector. There is a strong, shared commitment to deepen our economic partnership and drive greater prosperity—particularly in key areas such as green finance, infrastructure investment, and fintech.

Global trade is entering a new era, where strategic alliances and trade agreements are more crucial than ever. As we look ahead to the UK-India Economic and Financial Dialogue and continue FTA negotiations, our focus remains on sustaining momentum and delivering tangible outcomes in the months to come.”

David Schwimmer, CEO, LSEG said:

LSEG is honoured to host the 13th UK-India Economic and Financial Dialogue at the London Stock Exchange as part of our continued support for initiatives that promote collaboration and connectivity between UK and Indian financial markets. Through deepened partnership, the governments and regulators from both countries can help to build an environment which delivers real benefits to their financial markets and economies.

The press release issued by HM Treasury on 7 April 2025.

Red tape will be cut for asset managers, as the Chancellor goes further and faster to drive growth through the Plan for Change.

Following the Prime Minister’s commitment to cut the administrative cost of regulation on business by a quarter last month, the Treasury will consult on changes to rules governing Alternative Investment Fund Managers (AIFMs).

It will be focused on removing unnecessary barriers to investment by making rules less onerous for AIFMs. This will save asset managers millions in time, money and resource – while freeing them to help the UK’s most exciting businesses scale up, grow and create jobs.

Emma Reynolds, Economic Secretary to the Treasury, said:

We want to bring security to working people by going further and faster to drive growth through our Plan for Change.

That means making Britain the number one place to do business and tearing down unnecessary barriers to investment, such as costly regulation that prevents asset management firms from growing and provide capital for businesses across the country to grow.

Simon Walls, Interim Executive Director of Markets at the FCA, said:

We want rules, better tailored to UK investment managers. These could allow them to operate more efficiently, further supporting competition, competitiveness and economic growth.

It’s part of our wider work to streamline the regulatory regime for asset managers, to support the continued competitiveness of our world-leading financial services as outlined in our new strategy.

Michael Moore, Chief Executive of the British Venture Capital Association, said:

We welcome the government’s consultation on developing a simpler and more competitive system for alternative investment fund managers (AIFMs). More effective, less burdensome regulation will make the UK private capital industry more globally competitive and help it to boost investment from the UK and international investors into growing British businesses.

This consultation is an important step in securing the UK’s status as one of the world’s leading private capital hubs. We look forward to engaging on the principles and the detail of the changes, but this provides the opportunity to create a real boost for the Government’s growth mission by developing the UK’s private capital fund ecosystem and increasing inward investment in UK SMEs.

Together with the FCA we plan to refresh outdated regulatory thresholds. The consultation will take place over the next 9 weeks, providing hedge funds, private equity firms, and investment trusts the opportunity to contribute to the development of a more streamlined regulatory environment.

Currently, firms face a suite of new regulatory burdens once they hold 100 million euros in assets, which can discourage some firms from growing and financing more investment across the country.

This inadvertent cliff edge means that smaller asset management firms immediately have to sign up to the same rules as the biggest firms once they reach this threshold, bringing about large costs.

The consultation aims to create a more graduated regime, where only the largest firms – with the value of over £5 billion are subject to the full scope of requirements, with the majority of firms subject to much less prescriptive rules, helping to reduce admin costs for those businesses.

Once the consultation has concluded, feedback from the asset management sector will be used to design draft legislation which will then be shared with asset management businesses next year.

Further information

• The consultation is open from Monday 7th April to Monday 9 June – access the consultation portal here.

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

Outside dining and later opening hours on the menu as government backs British pubs, clubs and restaurants with moves to slash burdensome red tape in the hospitality sector.

Pubs, clubs and restaurants are set to be released from burdensome red tape which has stifled business as government ‘backs the British night out’.

Action includes moves to improve the application of licensing laws and strengthening businesses’ competitiveness, giving diners, pub and party-goers more time and more choice to enjoy what British hospitality has to offer.

It includes a landmark pilot that could see more alfresco dining and later opening hours in London, as the Mayor of London is granted new “call in” powers to review blocked licensing applications in nightlife hotspots.

If successful, this approach could be rolled out to other mayors across England, working closely with their own local police forces.

The package of measures will seize the opportunities on offer in the UK hospitality sector, which employs over three million people and is worth around £62 billion to the British economy. It comes as the government continues to go further and faster to drive economic growth and get more money in working people’s pockets, a key focus of the Plan for Change.

Businesses have long indicated that the current licensing system lacks proportionality, consistency, and transparency – creating barriers to growth and investment for business.

Blockers to growth include businesses being banned from extending licensing hours for late night drinking and anti-competitive blockages from other businesses.

Chancellor of the Exchequer, Rachel Reeves, said:

British businesses are the lifeblood of our communities. Our Plan for Change will make sure they have the conditions to grow – not be tied down by unnecessarily burdensome red tape.

We’ve heard industry concerns and we’re partnering with businesses to understand what changes need to be made, because a thriving nighttime economy is good for local economies, good for growth, and good for getting more money in people’s pockets.

Deputy Prime Minister, Angela Rayner, said:

We promised to clear the way to economic growth in our Plan for Change and that’s exactly what we’re doing. We’re already reforming planning to back the builders, not the blockers. Now we want to do the same for the nighttime economy which has been neglected for so long.

Our pubs, restaurants, and live music venues are the beating heart of our cultural life, so it is vital they are given every chance to survive and thrive.

That’s why it’s time to give the Mayor of London new powers to back the capital’s pubs and clubs, as part of our plan to give mayors the tools they need to drive growth. Too often, we have seen the complaints of a vocal minority of objectors promoted over the need for our country to grow – we are determined to change this.

Nick Mackenzie, CEO of Greene King and Chair of the British Beer and Pub Association, Kate Nicholls, National Chair of the Institute of Licensing CEO of UKHospitality, Michael Kill, CEO of Night Time Industries Association, and the police are all working with the government to rapidly explore and evaluate better licensing options for businesses right across the UK.

The group aims to transform the licensing system to one that better supports business growth and confidence, creating a better hospitality experience for Britons and visitors, whilst ensuring public safety and community interests remain adequately protected.

It will report back in six weeks with solutions informing the government’s work to kickstart economic growth as part of the Plan for Change.

Business and Trade Secretary, Jonathan Reynolds, said:

Businesses in our retail, hospitality and leisure sectors are foundational to our economy and our high streets. They are big employers in every community across the UK, offering accessible jobs and opportunities and providing spaces where communities can come together – they are the glue that binds us together as a society.

These measures will ensure that we support these vital sectors by delivering a business environment as part of our Plan for Change that allows them to operate profitably so that they can provide the jobs, investment and growth communities across the country need.

In addition to these steps, a new £1.5 million Hospitality Support Scheme has been launched to help get existing projects over the line and fill job vacancies in the sector.

This includes supporting the delivery of hospitality training facilities in prisons, which will help to address skills gaps and provide prison leavers with a fresh start and opportunities on release, reducing unemployment and the £18 billion cost of reoffending.

These new steps are part of the government’s wider work to kickstart economic growth, boost productivity and put more money in working people’s pockets as part of the Plan for Change.

Nick Mackenzie, CEO of Greene King, Chair of the British Beer and Pub Association and Co-Chair of the Licensing Taskforce, said:

Licensing regulations provide a clear example of how well-intentioned legislation can inhibit economic growth, with excessive restrictions often limiting premises’ ability to respond to changing circumstances and customer demand.

I am looking forward to working with the hospitality minister as we speak to stakeholders from within the industry and beyond to understand current frustrations and limitations.

I hope that we can address existing concerns and create a licensing system that reduces unnecessary red tape, accelerates the licensing process and unlocks opportunities for premises to drive economic growth across the UK.

The Mayor of London, Sadiq Khan, said:

I am delighted that the government is looking to grant London greater powers over licensing.

This significant decision would allow us to do more to support the capital’s pubs, clubs, music venues and other parts of the visit and tourist scene. It would boost tourism, stimulate growth and deliver new jobs both in London and across the country.

This is more evidence that we now have a government that wants to work with the capital and recognises the role that we can play in delivering economic prosperity and support Londoners as we build a better London for everyone.

Kate Nicholls, Chief Executive of UKHospitality and National Chair of the Institute of Licensing, said:

Cutting red tape and improving hospitality’s competitiveness is much-needed to unlock our sector’s potential to drive socially productive growth and create jobs. A new and improved licensing system that is fit for the 21st century will be a huge boost to the nation’s pubs, bars, restaurants and hotels.

I’m delighted that this expert group will be leading the review and coming forward with solutions that can unlock the high street’s potential, in addition to informing the government’s Industrial Strategy.

Emma McClarkin, Chief Executive of the British Beer Association said:

A review of the 2003 Licensing Act is long overdue.  We are currently working with MPs to pass an amendment to permitted licensing hours at times of major national events when Parliament is not sitting.  But this is just one example where the current law restricts the ability of pubs to respond to consumer demand and sell beer and other drinks in a responsible manner.

There will be many other simple changes that can be made to the Act that will ease the ability to do business and drive more sales, invest and grow.  I look forward to the quick implementation of the recommendations that the taskforce brings forward and urge the government to repeat this exercise across a number of other policy areas where urgent reforms are needed including business rates reform, packaging reform and much needed cuts to beer duty.

The press release issued by HM Treasury on 3 April 2025.

HM Treasury has today (3 April) announced the extension of Andrew Duff’s term as Senior Independent Director on the UK Government Investments (UKGI) Board for 12 months, from July 2025 to July 2026.

UKGI is the government’s centre of expertise in corporate governance and corporate finance.

Andrew Duff was first appointed to the UKGI Board as a non-Executive Director in July 2019, and was reappointed for a second term in July 2022. Alongside this he is also Chair of Sage Group Plc. Andrew spent most of his executive career in the energy industry, including as Chief Executive Officer of global energy company, RWE Npower.

Emma Reynolds, The Economic Secretary to the Treasury and City Minister, welcomed the extension:

I am pleased to announce the extension of Andrew Duff’s term as a non-Executive Director on the UK Government Investments Board. UKGI provides invaluable advice and support to the government on complex corporate governance and corporate finance matters.

Andrew’s significant executive experience including in the energy sector will help UKGI continue its important work supporting the government’s growth and clean energy missions.

Vindi Banga, Chair of UKGI, said:

Andrew has made significant contributions across the organisation, and I am delighted that his term on the UKGI Board has been extended for a further 12-month period. I look forward to working with him and the rest of the Board in supporting UKGI to deliver its strategy and objectives.

This reappointment is regulated by the Commissioner for Public appointments (OCPA) and is made in accordance with the Governance Code on Public Appointments published by the Cabinet Office.

This reappointment is made on merit and political activity played no part in the decision process. In accordance with the code, there is a requirement for appointees’ political activity (if any declared) to be made public. Andrew Duff did not declare any political activity.

Further information

• UKGI is the government’s centre of expertise in corporate governance and corporate finance. It provides expert advice and leading solutions that inform and translate government’s decisions into effective outcomes in the national interest.
• UKGI acts as shareholder representative for, and leads the establishment of, UK government most complex and commercial arm’s length bodies on behalf of sponsor departments. It advises on major UK government corporate finance matters, including financial interventions into corporate structures and corporate finance negotiations; it analyses and advises on the UK government’s contingent liabilities and  advises on major UK government corporate finance matters, including financial interventions into corporate structures and corporate finance negotiations.
• UKGI is owned by HM Treasury and independently managed with a Board comprised predominantly of independent non-executive directors. UKGI works closely with both the private and public sectors, advising and interacting with ministers, Parliament and Whitehall departments.

The press release issued by HM Treasury on 27 March 2025.

The HMRC interest rates for late payments will be increased by 1.5% for all taxes from 6 April 2025 following a change in legislation.

This increase was announced at Autumn Budget 2024 and the change will take effect from 6 April 2025.

Information on the interest rates for payments will be updated shortly.

How HMRC interest rates are set

HMRC interest rates are set in legislation and are linked to the Bank of England base rate.

Late payment interest was set at base rate plus 2.5%. From 6 April 2025 this will increase to base rate plus 4.00% for most taxes.

Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5% and remains unchanged.

The differential between late payment interest and repayment interest is in line with the policy of other tax authorities worldwide and compares favourably with commercial practice for interest charged on loans or overdrafts and interest paid on deposits.

The rate of late payment interest encourages prompt payment and ensures fairness for those who pay their tax on time, while the rate of repayment interest fairly compensates taxpayers for loss of use of their money when they overpay.

The press release issued by HM Treasury on 27 March 2025.

Wales to see new £250m investment into UK’s largest semiconductor facility, supporting hundreds of highly-skilled jobs in Newport and supporting the government’s Plan for Change.

Wales is set to benefit from a £250million investment from one of the world’s largest manufacturers of semiconductors that will be vital to the production of electric vehicles (EV), supporting the government’s Plan for Change in delivering more skilled jobs, and turbocharging the economy.

The Chancellor Rachel Reeves will welcome Vishay Intertechnology’s intention to invest on a visit to their Newport plant today (Thursday 27 March) – the UK’s largest semiconductor facility – as part of plans to develop large-scale compound semiconductor manufacturing in the country.

The investment will boost production at the state-of-the-art factory where it will make advanced Silicon Carbide semiconductors, an integral part of EV production. This advanced technology supports faster battery charging time, enabling a more efficient supply of energy to the motor and longer driving distances.

Vishay’s investment is expected to directly support over 500 high value, high skilled jobs in the region and indirectly support hundreds more in the wider supply chain.

It comes after the Chancellor’s Spring Statement yesterday where she vowed to bring about “new era of security and national renewal” to kickstart economic growth, protect working people and keep Britain safe. The Chancellor confirmed that the OBR has upgraded their growth forecast in 2026 and every year thereafter and people will be on average £500 a year better off by the end of this parliament compared to under the previous government, putting more money in people’s pockets.

Chancellor of the Exchequer, Rachel Reeves said:

Under this government the UK is open for business. This is exactly the type of investment that will help us grow the economy, create highly skilled jobs and boost opportunity for people across the country, as we deliver on our Plan for Change to get more money in working people’s pockets.

Supported by the government’s Automotive Transformation Fund (ATF), the investment will help secure domestic supplies of semiconductors critical to the UK automotive industry, and other key industries including renewable energy and defence, supporting the Industrial Strategy. It also strengthens the UK’s position in a competitive, global semiconductor landscape, supporting long-term growth for our economy.

It is a huge boost for the UK as a global hub for advanced manufacturing, which has the fastest growth in manufacturing productivity per job in the G7 between 2010-2023.

Business and Trade Secretary, Jonathan Reynolds said:

This is a huge vote of confidence in the Welsh economy and our plans to make Britain the destination of choice for investments in the industries of tomorrow. It will support local skilled jobs and raise living standards, showing our Plan for Change is working.

Vishay’s investment will help secure a domestic supply of semiconductors which are vital for our world leading automotive sector and support our clean energy industries – key growth driving sectors identified in our upcoming Industrial Strategy.

Secretary of State for Wales, Jo Stevens said:

This massive investment by Vishay and the UK Government is a huge boost for Wales’s world-leading semiconductor industry.

Earlier this month I was at Vishay to see the work they do on advanced manufacturing, renewable energy and defence industries – all key sectors in the Welsh economy.

This investment will build on that success to create and support hundreds of highly skilled and well-paid jobs, driving economic growth in south Wales and beyond and helping us deliver our Plan for Change.

Roy Shoshani, COO Semiconductors and CTO for Vishay said:

This is an exciting moment, and the start of our plans for growth in the UK. We can see through the development of the Industrial Strategy and the skilled workforce in Newport that there is a real opportunity to play to the UK’s strength in advanced semiconductors, delivering greater economic security and supporting Net Zero.

Ahead of her visit to Newport, the Chancellor will join the Invest in Women Taskforce roundtable with the Welsh First Minister which has secured over £250million of funding commitments to support female entrepreneurs in the UK.

Through the ATF, delivered in partnership with the Advanced Propulsion Centre (APC), the government continues to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology. To date, the ATF and APC funding programmes have leveraged over £6 billion of investment from the private sector.

The Autumn Budget confirmed over £2 billion for capital and R&D funding over five years for zero emission vehicle manufacturing and their supply chains. Building on the achievements of the ATF and APC programmes, this long-term commitment is a vote of confidence in the UK’s automotive industry, supporting investment and productivity growth across UK automotive.

Mike Hawes, SMMT Chief Executive said:

This significant investment in compound semiconductors is a huge contribution to the innovation and advanced technology necessary to drive the future of UK Automotive. British-made next-generation semiconductors will create jobs, support supply chains and enhance the UK’s strategic capabilities. Digitisation and decarbonisation are at the heart of the transition taking place amongst UK automotive manufacturers, and this investment can support that transition, aided by a comprehensive industrial strategy to deliver the growth the sector and the economy needs.

The press release issued by HM Treasury on 27 March 2025.

New taskforce to unlock thousands of homes across England as government takes on the blockers to release surplus public land for housing.

The press release issued by HM Treasury on 26 March 2025.

The UK Chancellor delivered the Spring Statement today.

People across the UK will be on average £500 better off from 2029, relative to OBR’s autumn forecast, helping to deliver the Plan for Change as the Chancellor today (Wednesday 26 March) announced a Spring Statement to grasp the opportunities in a changing world.

The OBR also confirmed that the UK economy is expected to grow faster than expected from 2026 and will be larger by 2029 compared to its autumn forecast – up to 9.5% compared to 9.2%.

The Chancellor also set out how the government is protecting national security and maximising the growth potential of the UK defence sector by confirming a £2.2 billion increase in the UK-wide defence budget in 2025-26.

The Spring Statement delivers UK Government spending plans focused on its core objectives, bringing security and stability for working people across the UK.

It follows the Budget in the autumn where the Chancellor announced that the Northern Ireland Executive will be provided with an £18.2 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes an additional £1.5 billion through the Barnett formula, with £1.2 billion for day-to-day spending and £270 million for capital investment.

The measures taken today top these Barnett consequentials up by a further £14 million in 2025/26. The Northern Ireland Executive are receiving over 24% more per person than equivalent UK Government spending in the rest of the UK, including the 2024 restoration financial package.

The Northern Ireland Executive’s block grant funding from 2026-27 onwards will be confirmed at Phase 2 of the Spending Review, which concludes on 11 June 2025. The Chief Secretary to the Treasury will meet with his counterparts from the devolved governments to discuss their priorities ahead of its conclusion.

Secretary of State for Northern Ireland Hilary Benn said:  

I welcome the fact that Northern Ireland will receive a £14 million boost in Barnett consequentials as a result of today’s announcements, building on the record £18.2 billion settlement which was confirmed by the UK Government last Autumn.

This also follows a  £235 million package to transform public services in Northern Ireland, which will support the transformation of key public services which make a real impact on people’s lives, including health, education, planning and justice.

Importantly, today’s announcement reinforces the economic growth potential of the UK defence sector, and follows  the Prime Minister’s announcement of a £1.6bn deal to provide air defence missiles for Ukraine, which will create 200 jobs in Northern Ireland and demonstrates the strength of the local defence industry.

From next week, working people across Northern Ireland and the UK will also benefit from an increase to the National Living Wage, putting more money into the pockets of hard-working people.

And the UK Government continues to provide support  across Northern Ireland through City and Growth deal packages, having confirmed the Mid-South West and Causeway Coast and Glens City deal last year.

Taken together, these measures will foster growth in Northern Ireland, creating jobs, supporting public services, and boosting the quality of life for local people.”

Growth

Kickstarting economic growth is the number one mission of this government, putting more money in people’s pockets.

The UK Government has already made considerable progress on growth in Northern Ireland, including confirming the Mid-South West and Causeway Coast and Glens City deal. Earlier this month, the Prime Minister also announced a £1.6bn deal to provide air defence missiles for Ukraine, which will create 200 jobs in Northern Ireland. In February we launched Intertrade UK which will advise on how businesses can take advantage of the full opportunities of the UK internal market.

The actions of this government across the Autumn Budget and Spring Statement, if sustained, lead to a 0.6% rise in the level of real GDP by 2034-25.

The OBR concluded that the stability rule is met by £9.9 billion and the investment rule is met by £15.1 billion. Both rules are met two years early, meaning from 2027-28 the government is only borrowing for investment and net financial debt is falling.

The government is not satisfied with short-term growth figures, and is going further and faster today to improve this.

The Chancellor has announced a further £13 billion of capital investment over the Parliament to go further on growth, on top of the £100 billion uplift announced at Autumn Budget. This will deliver the projects needed to catalyse private investment, boost growth and drive forward the UK’s modern industrial strategy.

Taken together, this greater capital investment more than offsets the modest savings on day-to-day spending and means the total departmental spending will increase over the next five years, when compared with plans in the Autumn.

Defence

The world is changing before our eyes, reshaped by global instability, including Russian aggression in Ukraine. Europe is facing a once-in-a-generation moment for its collective security, with conflicts overseas undermining security and prosperity at home.

A month ago, the Prime Minister announced the biggest sustained increase in defence spending since the Cold War as a result of the changing global picture, now reaching 2.5% of GDP by April 2027, and with an ambition to reach 3% in the next Parliament subject to economic and fiscal conditions.

We are going further and faster to protect our national security and maximise the economic growth potential of the UK defence sector.

• Increasing the defence budget by £2.2 billion in 2025-26, taking additional spending on defence to over £5 billion since the Autumn Budget.
• This raises spending on defence to 2.36% next year and will be invested in fitting Royal Navy ships with Directed Energy Weapons five years earlier than planned, providing better homes for military families and modernising His Majesty’s Naval Base Portsmouth.
• Setting a minimum 10 percent ringfence for equipment spending on emerging technologies like drones and autonomous systems, dual-use technology, and AI-powered capabilities, so that British troops have the tools they need to fight and win in modern warfare.
• Getting this new tech into the hands of our armed forces quicker by cutting away bureaucracy, with a new UK Defence Innovation unit within the Ministry of Defence spearheading efforts to identify promising technology and ensure these get to the frontline at speed, while also bolstering the UK tech sector and crowding in private investment.
• Creating bespoke procurement processes for different types of military equipment, learning lessons from our rapid support for Ukraine to drive faster timescale targets for operationalising new tanks, aircraft and other essential tools for modern warfare.
• This government is determined to transform the defence sector into an engine for growth by focusing this investment on where it boosts the productive capacity of the economy such as investment in innovation and novel technologies. As a result of the increase in defence spending to 2.5%, the government estimates this could lead to around 0.3% higher GDP in the long run, equivalent to around £11 billion of GDP in today’s money.
• The government’s investment in defence will also support its number one mission to deliver economic growth. UK citizens will be protected from threats at home whilst creating a stable environment in which businesses can thrive, and supporting highly skilled jobs and apprenticeships across the whole of the UK.

Reform

The UK Government is determined to make the public sector more productive and to improve services for working people. But the changing world means we need to go further and faster to ensure we can deliver the public services that working people care most about.

The government has shown its commitment to taking the difficult decisions required to drive efficiencies and reform the state – reducing bureaucratic inefficiencies and duplication; and driving out wasteful government spend through cancelling thousands of government credit cards.

Getting more people into jobs is also central to the government’s growth mission. The broken welfare system is letting people down by asking them to prove what they can’t do, rather than focusing on what they could do with the right support – trapping people due to fear of trying work, lack of support and poor financial incentives.

The Chancellor has confirmed the creation of a £3.25 billion Transformation Fund to support the fundamental reform of public services, seize the opportunities of digital technology and Artificial Intelligence (AI), and transform frontline delivery to release savings for taxpayers over the long-term.

The UK Government provided £235 million to transform public services in Northern Ireland as part of the £3.3 billion restoration package for the Executive. This month we agreed to allocate £129 million of that funding to projects across several priority public services including health, education, planning and justice. The funding will see £61 million go towards expanding the multi-disciplinary teams in GP clinics across Northern Ireland, and support five other projects across justice, special education and infrastructure which represent key priorities in the Executive’s Programme for Government.

Looking Forward

This Spring Statement builds on the Autumn Budget and the decisions taken since required to deliver stability to the British economy and kickstart economic growth.

The government will set out its plans for spending and key public sector reforms at the Spending Review which will conclude on 11 June 2025.

Notes to editors

• Government calculations for the long-run impacts of higher defence spending are based on estimates from Antolin-Diaz and Surico (2025), forthcoming in the American Economic Review (AER), of the GDP impact of higher defence spending on GDP. Their estimates of the GDP multiplier stabilise after ten years at around 1.6, which is assumed to reflect an appropriate long-run multiplier for potential output, as any demand-side effects are likely to have dissipated at the ten-year horizon.
• Defence spending as a share of GDP is set to rise from 2.3% to 2.5%, an increase of 0.2 percentage points. Applying an elasticity of 1.6 to this change implies a long-run increase in the level of potential output of approximately 0.3%. A long-run increase to the level of potential output of 0.3% is equivalent to around £11 billion of GDP in the long run, in today’s prices.

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

Tax admin changes to mean up to 300,000 taxpayers will no longer be required to file a tax return.

Up to 300,000 people, including those with side hustles, will no longer need to file a Self-Assessment tax return, tax minister James Murray is expected to announce in a speech later today.

This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online.

As part of a bold new package to transform HMRC into a quicker, fairer and more modern body the minister is expected to announce plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for trading income, from £1,000 to £3,000 gross within this parliament.

This will help deliver the Plan for Change by freeing up time for taxpayers helping to create the conditions for economic growth.

This will benefit around 300,000 taxpayers. An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new simple online service. The changes reflect the government’s commitment to driving forward efficiency reform, a key component of its Plan for Change.

Mr Murray, the minister responsible for HMRC, will announce this reform to tax experts hosted by the Chartered Institute of Taxation and the Institute of Chartered Accountants in England and Wales in a speech to mark the 20th anniversary of HMRC.

He will also detail future simplifications to the government’s Temporary Admission customs procedure, to make this relief for temporary imports easier for a range of sectors to use, including art and antiques, often showcased in exhibitions across the UK.

A new digital pilot with the United States to test ways to speed up trade processes for U.S. and UK businesses is also expected to be announced. This pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and secure real-time data transfers. It will look to make it easier and quicker for businesses to request trade benefits from each country.

Minister Murray will also update on the work HMRC is doing to tackle phoenixism – where company directors go insolvent to avoid tax – as well as announcing a new reward scheme to encourage informants to come forward to HMRC about tax fraud.

Exchequer Secretary to the Treasury, James Murray said:

From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.

Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle.

We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.

Improving HMRC customer services

Since taking office, Murray has been taking teams of senior HMRC officials to meet firms including NatWest, Octopus Energy, Barclays, John Lewis, and Centrica to learn best practice and innovative approaches to modernising and digiting customer service from the private sector. This includes the use of generative AI and ‘test and learn’ approaches to improving customer service. HMRC is trialling the use of generative AI to point taxpayers to the advice they need on GOV.UK.

In line with practice from banks and other private sector businesses, Murray will announce that HMRC has begun trialling a system where customers can use their voice as their password, to pass security checks faster and more securely. Following an evaluation of the trial, it is expected to be rolled out across HMRC over the rest of this year. Voice Biometrics strengthen security, safeguard customer data, and reduce call times. Customers’ voice recordings are converted into encrypted biometric data, a voice print, and stored securely in a data centre.

As reforms got underway to automate and digitise its services, HMRC met its target of 85 per cent of calls handled between October and December 2024 and is expected to meet its customer service standards in 2025-26.

As part of this government’s commitment to partner and learn from industry, HMRC will launch a new service to provide an escalation route for agents with Self Assessment and PAYE queries which are over 4 weeks old. A dedicated team of experienced technicians and advisers will adopt a ‘once and done’ approach, taking end-to-end ownership of cases and maintaining regular communication with agents.

Closing the Tax Gap – phoenixism and informants

Since becoming chair of HMRC’s board last year, Exchequer Secretary James Murray has steered the UK tax authority to go further and faster to close the tax gap, in order to raise the revenue required to fund public services and investment projects.

Following the Autumn Budget’s announcement of future work to tackle phoenixism – where rogue directors avoid payment of company tax by going insolvent – Mr Murray will update on the work in his speech. He will lay out how HMRC and the Insolvency Service have agreed a joint plan, which includes an increase to the use of securities, where HMRC asks for upfront payment of tax from new companies, making more rogue directors personally liable for the taxes of their company.

Murray will also announce a new reward scheme for informants to be launched later this year. This will look to target serious non-compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The scheme will take inspiration from the successful US and Canadian ‘whistleblower’ models and will complement the existing HMRC rewards scheme.

Informants could take home a significant amount of compensation. This will be equal to a proportion of the tax take, ensuring that the scheme raises more money that it costs. Work is ongoing within the government regarding what percentage this could be. Further details will be set out in due course.

At the Budget in October, the Chancellor announced an injection of over £1.5bn in HMRC to recruit and fund an additional 5,000 new compliance caseworkers and 1,800 debt collection officers. Minister Murray will announce in his speech that an additional 600 new compliance staff will start work this month. Investment in AI is expected to improve the targeting of compliance work and help make HMRC staff more productive.

This, alongside investment to modernise HMRC systems and legislation to tackle non-compliant tax avoidance and prevent non-compliance will raise £6.5bn per year by 2029/30.

This will help deliver the Plan for Change by securing tax revenue to help fund investment projects to boost growth.

Simplifying Tax Admin and Modernising HMRC

A simple and modern tax and customs system is vital to create the conditions to grow the economy.

Following the commitment in the Autumn to bring forward measures in the Spring to simplify the tax and customs system, the government will today go further to reduce the time businesses spend managing their tax, so they can focus on what matters most to them: growing and being productive.

The minister will announce a future digital pilot with U.S. Customs and Border Protection to test ways to speed up trade processes for UK and U.S. businesses. In 2024, UK-U.S. goods trade was worth a combined £115bn.

The aim is to make supply chains between UK and U.S. businesses more efficient through modernising how HMRC systems, international partners and businesses communicate with each other. The pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and real-time data.

The pilot will include testing the ability to issue and share digital trusted trader credentials between UK and U.S. systems.  This would speed up processes for trusted U.S. and UK businesses trading with each other including by making it more easy and efficient to request trade benefits from each country.

Susan S. Thomas, acting Executive Assistant Commissioner of the U.S. CBP’s Office of Trade said:

Modernizing trade processes is essential if we are going to keep pace with today’s trading environment.

We are taking our operations to the next level, bridging gaps between systems, creating a new era of supply chain transparency and data system flexibility.

James Murray will announce changes to simplify the tax system. The ITSA trading income reporting threshold will increase from £1,000 to £3,000 gross within this parliament, aligning with the new reporting thresholds for property and “other taxable” income. This means, that up to 300,000 taxpayers, 98% of whom are self employed including the UK’s side hustlers, will not need to file a tax return. This ranges from people trading vintage clothes, dog-walking or gardening on the side, to driving a taxi or creating content online This will help cut waste, avoid unnecessary worry for customers and improve the conditions needed for them to grow.

Murray will also highlight simplifications to the customs regime to reduce burdens for traders. These include improvements to the Temporary Admission procedure, which relieves import duties for eligible goods that are imported temporarily. For example, the usual time limit for fine art and antiques will increase from 2 to 4 years.

Ellen Milner, Director of Public Policy, Chartered Institute of Taxation said:

We welcome the government’s focus on simplifying the tax system and improving customer service – rightly two key priorities for HMRC as the tax authority heads into its third decade. A more straightforward, easy to navigate tax system could free up business owners and managers to focus on growing their businesses, rather than spending their days overcoming bureaucratic hurdles. We especially welcome the announcement of a new approach to dealing with slow-moving income tax queries from agents. Hopefully, in due course, this can be expanded to unrepresented taxpayers and to other taxes.

Eve Williams, CEO of eBay UK, commented:

This will be welcome news for thousands of UK sellers for whom eBay is a side hustle and a means of supplementing their household income during challenging times. By removing the paperwork associated with selling online, hopefully we will help these side hustles grow into fully fledged small businesses.