Tag: Treasury

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

The first £752 million tranche of the UK’s Extraordinary Revenue Acceleration (ERA) loan to Ukraine has been transferred in demonstration of the UK’s commitment to Ukrainian defence.

• UK has sent first third of its £2.26 billion loan to Ukraine for the country to spend on military equipment in its hour of need
• Chancellor Rachel Reeves visited RAF Northolt to meet with UK suppliers sending equipment to Ukraine
• Delivery of the UK’s contribution to the G7 $50 billion Extraordinary Revenue Acceleration loan is the latest step in support for Ukraine from the UK government, with national security key to the Plan for Change

The ERA funding is on top of the £3 billion a year commitment by the UK to provide military aid for Ukraine. The Prime Minister has been clear that a strong Ukraine is vital to UK national security.

The money transferred yesterday Thursday 6 March, is part of a £2.26 billion loan backed by the profits of immobilised Russian sovereign assets, and will help Ukraine buy military equipment to defend itself against Russia’s unprovoked aggression.

It follows the Prime Minister’s commitment to increase defence spending to 2.5% of GDP from 2027, with an ambition to reach 3% in the next parliament as economic and fiscal conditions allow, and announcing an additional £1.6 billion of UK Export Finance to Ukraine. National security is fundamental to the government’s Plan for Change, and will help improve the lives of people across the UK by growing the economy.

To mark this signal of UK support, Chancellor of the Exchequer Rachel Reeves, visited RAF Northolt to meet Armed Forces personnel. She also met suppliers sending vital equipment to the Armed Forces of Ukraine through UK MoD rapid procurement contracts.

Companies at RAF Northolt yesterday included Malloy, MBDA and Thales, as well as UK-based SMEs including Greenjets, Kirintec and Windracers – displaying a range of defence equipment such as air defence missiles, bomb disposal suits and cargo drones.

Increased defence spending will support highly skilled jobs and apprenticeships across the UK. Last year, defence spending supported over 430,000 UK jobs the equivalent to one in every 60, with 68% of defence spending going outside of London and the Southeast, benefitting every nation and region of the country.

Rachel Reeves, Chancellor of the Exchequer, said:

“Now more than ever in this changed world, Ukraine needs our support as a reliable partner to secure peace following Russia’s unprovoked invasion.

“British excellence and innovation in defence was on display as I visited RAF Northolt yesterday. Our contribution to the war effort via increased defence spending is also supporting UK industries and jobs and putting money back in the pockets of hardworking British people.”

The multibillion-pound funding is the UK’s contribution to the G7 ERA Loans to Ukraine Scheme, through which G7 countries will collectively provide $50 billion to support Ukraine. The UK’s contribution is earmarked for military procurement to bolster Ukraine’s defences, and is being delivered in three £752 million payments. A tranched approach will allow for greater flexibility in military procurement, and will provide the best value for money for both the UK and Ukraine.

Chancellor Reeves and Ukraine’s Finance Minister Sergii Marchenko signed the UK-Ukraine bilateral loan agreement on Saturday in the presence of Prime Minister Keir Starmer and Ukraine’s President Volodymyr Zelenskyy in No.11 Downing Street.

Last week, the Chancellor alongside the Business Secretary and the Defence Secretary confirmed that a new UK defence innovation organisation will work with innovative firms to rapidly get cutting-edge military technology into the hands of British troops, and harness the ingenuity of the UK’s leading tech and manufacturing sectors.

The Prime Minister and President Zelenskyy also signed a historic 100 Year Partnership in Kyiv earlier this year. The landmark treaty formalised the unbreakable bonds between the UK and Ukraine, broadening and deepening the relationship across defence and non-military areas and enabling closer community links.

The press release issued by HM Treasury on 1 March 2025.

Chancellor Rachel Reeves and Ukraine’s Finance Minister Sergii Marchenko will today (Saturday 1 March) sign the UK-Ukraine Bilateral agreement.

• The £2.26 billion loan will bolster Ukrainian military capability, and will be paid back using profits generated on sanctioned Russian sovereign assets.
• Chancellor Rachel Reeves and Ukrainian Finance Minister Sergii Marchenko will sign the formal loan agreement today (Saturday 1 March), with the first tranche of funding expected to reach Ukraine later next week.
• The loan demonstrates the UK’s commitment to Ukrainian defence. A strong Ukraine is vital to UK national security – the first duty of any government and central to the Plan for Change.

Chancellor Rachel Reeves and Ukraine’s Finance Minister Sergii Marchenko will today (Saturday 1 March) sign the UK-Ukraine Bilateral agreement.

This agreement will deliver £2.26 billion in funding to Ukraine, which will be paid back using the extraordinary profits generated on sanctioned Russian sovereign assets held in the EU.

This is the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, through which G7 countries will collectively provide $50 billion to support Ukraine.

Chancellor of the Exchequer Rachel Reeves said:

A safe and secure Ukraine is a safe and secure United Kingdom. This funding will bolster Ukraine’s armed forces and will put Ukraine in the strongest possible position at a critical juncture in the war.

It comes as we have increased our defence spending to 2.5% of GDP, which will deliver the stability required to keep us safe and underpin economic growth.

The loan will be fully earmarked for military procurement to bolster Ukraine’s defences, with the first tranche of funding expected to be disbursed to Ukraine next week.

Russia’s obligation under international law to pay for the damage it has caused to Ukraine is clear and this G7 agreement, backed by the profits generated on sanctioned Russian sovereign assets, is an important step to ensuring this happens.

The funding will be delivered in three equal annual payments of £752m.

The announcement of the loan agreement is on top of the £3 billion a year commitment by the UK to provide military aid for Ukraine. The Prime Minister has been clear that a strong Ukraine is vital to UK national security.

This loan follows the announcement by the Prime Minister committing the Government to increase UK defence spending to 2.5% of GDP by 2027, with an ambition to spend 3% of GDP on defence in the next parliament as economic and fiscal conditions allow.

This represents the biggest sustained increase in defence spending since the Cold War, safeguarding our collective security and funding the capabilities, technology and industrial capacity needed to keep the UK and our allies safe for generations to come.

As set out in the Plan for Change, national security is the first duty of the government, and investment in defence will protect UK citizens from threats at home while also creating a secure and stable environment for economic growth.

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

At the G20 Finance Ministers and Central Bank Governors meeting in South Africa the Chancellor, Rachel Reeves, will make the case for defence investment, declaring that it’s the “bedrock of economic growth”.

Following the PM’s announcement yesterday, the Chancellor will state that in a dangerous world the UK will not shy away from bolstering defence spending and will set out our ambition to raise UK defence spending further to 3% by the next parliament, subject to economic and fiscal conditions.

Protecting national security to protect the economy will also be a key message that the Chancellor will set out on the global stage today as she attends the G20 Finance Ministers and Central Bank Governors meeting in Cape Town, South Africa.

The UK is already the third largest defence spender in NATO in cash terms, and this government has already boosted defence spending by almost £3 billion at the Autumn Budget.

The Chancellor will also reaffirm our commitment to European defence and encourage other European allies at the G20 to boost their defence spending in line with the UK in response to the security threats we face.

She will also discuss the possibilities for like-minded countries to mobilise private finance to maximise our financial resources for defence.

The government’s commitment to invest in defence will protect UK citizens from threats at home but will also create a secure and stable environment in which businesses can thrive, supporting the Government’s number one mission to deliver economic growth.

Chancellor of the Exchequer, Rachel Reeves said:

It’s clear we are facing a more dangerous world, and I will not hide from this reality. This is the moment for us all to step up – and together with our European partners we will go further and faster on defence.

National security will always be the first responsibility of this government and is the bedrock economic growth. Through intelligent investment, relentless reform, and free and fair trade – the most reliable driver of global growth – we can deliver sustainable growth that puts more money into the pockets of working people.

The Chancellor is also expected to set out that she is a champion of free and fair-trade and, will continue to make the case for openness in a series of bilateral meetings with G20 finance ministers.

While in Cape Town the Chancellor will engage with best-in-class British firms in South Africa and visit Cape Town’s historic V&A Waterfront. The Chancellor is expected to welcome British companies including consultancy Turner & Townsend and engineering firm Arup winning new contracts to play a role in the site’s expansion, showcasing UK expertise in designing, planning, and building infrastructure around the world.

The Chancellor will also meet influential businesses and investors in South Africa, such as representatives from Old Mutual Limited, the Foschini Group, and Absa, at a private reception at the High Commissioner’s residence, where she will deliver a keynote speech highlighting growth and investment opportunities in the UK.

The press release issued by HM Treasury on 24 February 2025.

Dr. Swati Dhingra has been reappointed as an external member to the Monetary Policy Committee (MPC), the Chancellor of the Exchequer, Rachel Reeves, has announced.

Dr. Swati Dhingra is an Associate Professor of Economics at the London School of Economics (LSE), and an Associate of the Centre for Economic Performance at LSE. Her research has been funded by the Economic and Social Research Council; European Research Council; International Growth Centre; UK Research and Innovation; and she was awarded the Office for National Statistics’ Research Excellence People’s Choice Award 2019.

From 1 January 2023, Dr. Swati Dhingra has been Director of the Review of Economic Studies. She has also been a member of the UK’s Trade Modelling Review Expert Panel and the LSE’s Economic Diplomacy Commission.

About the reappointment process

Reappointments are not automatic, and each case is considered on its own merits. This reappointment was made by the Chancellor of the Exchequer, in line with the requirements of the Governance Code for Public Appointments.

About the Monetary Policy Committee

The independent MPC makes decisions about the operation of monetary policy. It comprises of the Governor of the Bank of England, three Deputy Governors, the Bank of England’s Chief Economist and four external members. External members, who are appointed by the Chancellor, may serve up to two three-year terms on the MPC.

The appointment of external members to the MPC is designed to ensure that the Committee benefits from thinking and expertise in addition to that gained inside the Bank. Each member of the MPC has expertise in the field of economics and monetary policy. They are independent and do not represent particular groups or areas.

The press release issued by HM Treasury on 20 February 2025.

Rachel Reeves urges financial industry leaders to seize growth opportunities in emerging markets, creating new business for British firms and boosting trade links with fast-growing economies, delivering on the government’s Plan for Change.

In Canary Wharf today (20 February) the Chancellor met with some of the UK’s biggest financial services firms such as Aviva, HSBC and Schroders and urged them to work with development institutions including the European Bank for Reconstruction and Development (EBRD) and British International Investment. To go further and faster in delivering the government’s Plan for Change and put more money in people’s pockets, the Chancellor encouraged firms to seize investment opportunities in emerging markets for Britain’s brightest and best companies.

Co-hosting a roundtable with Odile Renaud-Basso, president of the EBRD, the Chancellor launched the “London Coalition on Sustainable Sovereign Debt”. This will be co-chaired by the Economic Secretary to the Treasury, Emma Reynolds.

The Coalition will bring together government and private sector stakeholders to find innovative solutions to more sustainable sovereign debt financing in developing economies.

Promoting orderly and transparent debt restructuring and more resilient borrowing will mean that emerging economies can make progress meeting their climate and development targets. The Coalition capitalises on London’s financial services expertise and will help cement its position as a global leader in development finance, in turn supporting economic activity and financing investment across the country. Investing in emerging markets themselves can boost UK growth by creating new opportunities for British businesses in areas such as financial services, and boost trade ties with fast-growing economies amid an increasingly uncertain global environment.

Chancellor of the Exchequer, Rachel Reeves said:

Business and government must work together to seize opportunities in emerging markets and kickstart economic growth as part of our Plan for Change.

Today’s roundtable shows how the UK’s world-leading financial centre can help countries unlock new opportunities for our brightest and best British companies to create wealth and drive growth.

President of the European Bank for Reconstruction and Development Odile Renaud-Basso said:

Mobilising private capital is key to meeting global development needs. I’m delighted to co-host UK business leaders with the Chancellor to discuss how multilateral banks like the EBRD can help channel further financing to emerging markets. By joining forces, we aim to deliver the much-needed impact for developing countries while creating new opportunities for businesses from developed economies.

The Chancellor and Renaud-Basso also signed a Memorandum of Understanding setting out cooperation on the EBRD annual meeting and business forum in London, which will be held from 13 to 15 May this year.

The Chancellor will attend the bank’s first annual meeting in London since 2016 where it will see governors approve the bank’s next 5-year strategy and highlight opportunities for UK businesses to work with the EBRD in its key markets such as Ukraine, Poland and Turkey.

Reeves and Renaud-Basso discussed with business leaders how to create the right environment for investment. This is being done at home, for example through reforms to the pensions system which could unlock around £80 billion in productive investment and the launch of the Transition Finance Council led by Lord Alok Sharma. It is also key to work overseas, where British International Investment and UK-backed programmes including MOBILIST and the Private Infrastructure Development Group have unlocked billions in private investment for climate and development around the world. A new Institutional Investor Taskforce will advise government and institutional investors on how they can work together to open up even more of this much-needed investment and establish London as the world’s leading climate and development finance hub.

Reeves outlined the UK’s growth priorities, both at home and abroad, and highlighted the financing tools and instruments to help achieve this such as the National Wealth Fund, which is expected to mobilise over £70 billion in private investment into the high-growth industries of the future. Reeves also underscored the importance of multilateral development banks in helping to mobilise private capital, through working together more effectively as a system and with the private sector.

As the largest institutional investor in Ukraine, the EBRD has also been working with the UK government to support Ukraine’s resilience and recovery. In December, the UK confirmed its participation in a EUR 4bn capital increase which will unlock billions each year to support critical sectors of Ukraine’s economy. The EBRD and Aon also launched an innovative $110m war insurance facility with UK support in the same month to rebuild the country’s insurance market.

Elsewhere, the EBRD invests in 36 economies across three continents including in Central, Eastern and Southern Europe, Central Asia and North Africa. This year it will also begin operations in sub-Saharan Africa.

The roundtable comes ahead of the Chancellor’s visit to Cape Town, South Africa, next week to attend the G20 Finance Ministers and Central Bank Governors meeting. She will be advocating for the UK’s Growth Mission on the global stage and championing how private capital and the role of the City will kickstart economic growth and raise living standards around the world.

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Baroness Shriti Vadera, Chair of Prudential PLC and Co-Chair of the World Bank Private Sector Investment Lab, said:

It is critical for governments, international financial institutions, and the private sector to work together to mobilise, at scale and pace, greater levels of finance for climate and development where it is most needed – in emerging and developing markets. I particularly welcome the focus today on practical steps to develop and deploy risk-sharing and blended financial instruments.

Dame Elizabeth Corley, Chair of Schroders PLC, said:

I firmly believe asset managers play a key role in crowding in private capital and unlocking it at scale in emerging markets. Schroders, with its impact pioneer BlueOrchard, is eager to share our expertise in blended finance and impact investing to overcome barriers to private sector investment, redressing some of the world’s biggest challenges like climate change and inequality.

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

Financial markets will be modernised to drive capital market competitiveness and deliver growth – the priority of the government’s Plan for Change.

In a meeting with the country’s top bankers, the Chancellor set out a plan to speed up settlement of securities trades which will make the UK’s capital markets more competitive to drive economic growth through the Plan for Change and put more money into people’s pockets.

The top brass from JP Morgan, Blackrock, Abrdn, Morgan Stanley, Goldman Sachs, Citi, Fidelity, and Schroders were welcomed into No11 Downing Street for breakfast this morning, as part of ongoing engagement with industry to hone the Financial Services Growth and Competitiveness Strategy – one of the eight key growth sectors identified in the Modern Industrial Strategy.

Rachel Reeves spoke about the importance of going further and faster to drive growth and revealed that the Government had accepted all recommendations made by the Accelerated Settlement Technical Group – confirming that the UK will move to a ‘T+1’ standard for settling securities trades from 11 October 2027.

The change means that a typical securities trade, such as buying and selling shares, would be settled the day after it is agreed – instead of the current two-day standard. Faster settlement will support economic growth by putting the UK at the forefront of modernised, highly efficient and automated capital markets, bringing the UK into line with key international markets such as the US and reducing costs for investors by limiting risks when making trades.

Chancellor of the Exchequer, Rachel Reeves said:

I am determined to go further and faster to drive growth and put more money into people’s pockets through our Plan for Change. Speeding up the settlement of trades makes our financial markets more efficient and internationally competitive.

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

We highlighted how the move to T+1 will make our markets more efficient and support growth in our recent letter to the Prime Minister. We will support industry as they move to T+1 and expect firms to engage and plan early.

Governor of the Bank of England, Andrew Bailey said: 

Shortening the UK securities settlement cycle to T+1 will bring important financial stability benefits from reduced counterparty credit risk in financial markets. It is important that firms and settlement infrastructures have robust plans for an orderly transition in October 2027. As part of this effort, the Bank looks forward to continuing dialogue with regulators in other markets which are pursuing similar changes.

The government has accepted all the recommendations made by the Accelerated Settlement Technical Group, which has created a detailed implementation plan to ensure a smooth transition to T+1, and confirmed that it will bring forward legislation to implement the change, including setting the date to move to the new standard.

Terms of Reference have been published for the next phase of the project, which will continue to be led by the industry taskforce with Andrew Douglas as chair and HMT, the FCA and the Bank as observers. Industry chairs from the EU and Switzerland have also been invited to observe the UK industry taskforce to encourage alignment across Europe.

The taskforce will oversee and manage implementation of the recommendations up until T+1 is successfully implemented, and for a short period afterwards to evaluate the short-term impacts.

The government, the Financial Conduct Authority and the Bank of England support the industry recommendation to move to T+1 settlement in UK markets by 11 October 2027 and call on the industry to engage with the recommendations and start their planning as soon as possible.

Notes to editors

Stakeholder commentary:

Tiina Lee, Chief Executive Officer of Citi UK said:

We welcome the move to a T+1 settlement cycle in UK markets and appreciate the hard work in achieving the alignment of timelines with the EU. Based on Citi’s experience with global investors, coordinated market reforms are critical to the growth and competitiveness of the UK. We look forward to working with other industry participants to ensure a smooth transition in October 2027.

Conor Hillery, Deputy CEO & Head of Investment Banking in EMEA, JP Morgan, said:

We welcome the Chancellor’s continued dialogue with UK financial services on its role in facilitating growth, which requires the right policy and regulatory framework. This move to a modern T+1 settlement cycle will contribute to keeping London as a competitive financial centre, so we support the government’s efforts to make it happen.

Clare Woodman, Head of EMEA and CEO of Morgan Stanley International said:

We welcome the UK Government’s commitment to move to a T+1 settlement cycle in October 2027. The shift to a shorter settlement cycle will generate market efficiencies supporting the competitiveness of UK markets.

The press release issued by HM Treasury on 16 February 2025.

From tomorrow (17 February), Local Authorities can begin rolling out local schemes for tax relief to help filmmakers produce the country’s next box office hits, rom-coms and cult classics.

Film studios are to receive business rates relief over the next nine years as the government rolls out a 40% reduction in business rates bills – to help drive growth and deliver the Plan for Change.

From tomorrow (17 February), Local Authorities can begin implementing local schemes and awarding the tax relief to help filmmakers kickstart their journeys to producing the country’s next box office hits, cult classics and major rom-coms.

The UK’s creative sector already employs over 2.4 million people and is worth over £120 billion to the economy. The start of the business rates relief for film studios rollout will help create the conditions to boost both of these.

In October, the government confirmed that it would proceed with Film Studio Business Rates Relief that will be available for eligible studios in England until 2034, and, where applicable, will be backdated to 1 April 2024.

Chancellor of the Exchequer, Rachel Reeves, said:

The UK leads the world in creating great film and TV and we should all be immensely proud of the impact we’ve had across the globe.

From the Avengers to Indiana Jones, the UK has drawn in some of cinema’s biggest names thanks to a combination of fantastic local talent and a world-leading creative sector as well as attractive tax incentives.

As part of the Plan for Change, we will continue to build the sector into a global beacon of home grown success, creating more jobs, more investment, and putting more money into working people’s pockets.

This comes on top of a package of wider previous announcements for the creative industries announced on 17 January that included investments for start-up video game studios, grassroots music venues and creative businesses.

The relief will maintain the UK’s status as a world leader in the creative industries and will help deliver the Plan for Change by going further and faster to kickstart economic growth so working people have more money in their pockets.

The creative industries sector employs 2.4 million people and is worth £124.6 billion to the UK economy. Business rates relief forms part of the government’s wider strategy to support this vital growth sector, and forms a key part of our modern Industrial Strategy.

The film and TV sector benefits from other generous tax reliefs. The Audio-Visual Expenditure Credit (AVEC) provides companies with a tax credit worth 34% of their UK production costs on a film or high-end TV programme, or 39% of their production costs on an animation or children’s TV programme.

In addition, from 1 April 2025, film and high-end TV companies may claim a credit of 39% on their UK visual effects costs; and eligible films with budgets of under £15 million will be able to claim an enhanced 53% rate, known as the Independent Film Tax Credit.

Today (16 February), the UK film and TV industry will attend the BAFTA Film Awards that celebrate the many achievements of the sector and the significant cultural impact of British film and TV around the world.

Culture Secretary Lisa Nandy said:

The UK’s film industry is truly world class, producing global box office hits like Wicked and indie classics like Aftersun.

The sector has huge potential for further economic growth and the government is ambitious for its future. Our new tax incentive, as well as other new measures like indie film tax reliefs and £25 million funding for a new film studio in Sunderland, will help ensure we can continue to create British content, international blockbusters and high quality jobs.

Adrian Wootton OBE, Chief Executive of the British Film Commission:

The British film and TV industry is a creative and economic powerhouse, and our film studios are a vital contributor to this success. Today’s confirmation of the Business Rates Relief for Film Studios in England is testament to Government’s recognition of this fact. The BFC is pleased that Government listened to the sector’s concerns and we are proud to have supported the development of this landmark intervention. We will continue to work with Government and stakeholders to secure the best possible long term solution for all parties.

Harriet Finney, Deputy CEO and Director of Corporate & Industry Affairs, BFI said:

2024 saw a massive £5.6 billion of production spend in the UK, further confirming that our film and TV industries continue to be a powerful and vital growth industry. Our state-of-the-art studio spaces are central to that growth, so we welcome today’s announcement and the Government’s recognition of their crucial role in ensuring we can continue to make world-renowned UK film and TV and attract outstanding international productions, driving investment and creating jobs across the UK.

Sara Putt, Chair, BAFTA said:

The UK is a world-leading centre for film and TV production – our studios provide world-class facilities and the craft and production skills here are second to none, as showcased by the British-made films nominated in this year’s EE BAFTA Film Awards.  For those freelancers and crews to continue doing what they do best, it is vital that the UK remains competitive as a prospect for inward investment and continues to support a healthy talent pipeline to grow our domestic film and TV industry, so more UK talent and stories are celebrated at home and around the world.

Simon Robinson, Chief Operating Officer of Warner Bros. Discovery Studios said:

We welcome the Treasury’s announcement confirming its commitment to providing vital relief to business rates.  It will create a stable environment for long-term investment, including securing the Warner Bros. Studios Leavesden expansion, which will create 4,000 direct and indirect jobs, and the opportunity for continued growth of the industry in the UK and U.S.

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More information

• The relief will be available on properties valued by the Valuation Office Agency (VOA) as film studios.
• The 40% reduction is inclusive of Transitional Relief. The value of any Transitional Relief a studio receives will be deducted from the value of the film studio relief. This means that eligible film studios’ final bills will be no more than 60% of their gross bill. Studios will remain eligible for Improvement Relief in addition to this relief, which will mean that no ratepayer will face higher business rates bills for 12 months as a result of qualifying improvements to a property they occupy.
• Film studios will not need to apply for the relief, as Local Authorities will award it to eligible properties. If in doubt, film studios should contact their local authority.

The press release issued by HM Treasury on 13 February 2025.

The government commits to a new, permanent, comprehensive mortgage guarantee scheme to increase homeownership.

Further plans to modernise home buying have been unveiled this week, helping more people to realise their ambitions of owning their own home as part of the government’s Plan for Change.

The government has committed to launching a new, permanent, comprehensive mortgage guarantee scheme that will open the door to homeownership for more young families and hardworking renters.

Alongside this the Economic Secretary to the Treasury has written to the Financial Conduct Authority (FCA) following their response to the government’s call for regulators to support growth, setting out the government’s support for their proposal to review mortgage rules. The government has made clear it wants the FCA’s review to be as ambitious and rapid as possible to help as many people as possible to achieve the dream of owning a place of their own.

It follows an announcement last week that the government is streamlining and digitising the process for buying and selling homes to help homebuyers save time and money, and reducing the number of house sales that fall through. Fall throughs impact one in three transactions and cost people around £400million a year in total and currently there are delays of almost five months in the system.

Millions of hardworking people have been locked out of home ownership – the number of first-time buyers fell to a 10 year low in 2023 and today’s under 30s are less than half as likely to be home owners than those at the same age in 1990.

The government’s Plan for Change has clear ambitions for delivering 1.5 million more homes and driving growth – cutting unnecessary red tape in order to be on the side of builders and working people who want to get on the property ladder.

City Minister Emma Reynolds said:

“For too long politicians have ducked and dodged the decisions needed to support homeownership.

“Simplifying responsible lending rules and putting in place a permanent mortgage guarantee scheme shows our commitment to making the dream of owning a home a reality. I will work closely with regulators and industry to get this done quickly and in a way that supports as many people as possible.”

Housing Minister Matthew Pennycook said:

“The affordability challenges facing first-time buyers mean that we now have a generation locked out of homeownership . This government is determined to change that, ensuring that young families and hardworking renters can buy a home of their own.”

New details on the new Mortgage Guarantee Scheme will be announced in due course and will replace the existing Mortgage Guarantee Scheme, which was due to expire this year. By making the Mortgage Guarantee Scheme permanent and comprehensive, banks and building societies will have long-term confidence to continue offering low-deposit mortgages.

Many working people continue to find it extremely difficult to secure a deposit, meaning for too many the dream of home ownership has depended on access to the ‘Bank of Mum and Dad’, leaving those without that option often trapped in a cycle of renting without a way out.

This commitment to a new Mortgage Guarantee Scheme means first-time buyers, including young families, will be able to take that crucial first step onto the property ladder, with only a small deposit, tackling one of the biggest barriers to homeownership and giving them the stability they need to plan for the future.

The press release issued by HM Treasury on 6 February 2025.

The Treasury has today announced the appointment of Chris Walton as Non-Executive Chair of The Royal Mint.

Chris Walton will be in position for an initial three-year term, succeeding Graham Love, who served as Chair since December 2018. Chris will oversee the Mint as it continues to diversify its portfolio into new business areas, and to produce UK circulating coins in line with demand.

Commenting on the appointment, Economic Secretary to the Treasury and City Minister, Emma Reynolds said:

I’m delighted to welcome Chris Walton to The Royal Mint as the new Chair. Chris brings a wealth of leadership experience to the role, and I look forward to working with him as he shapes the strategic vision of The Royal Mint in the years ahead.

I want to thank Graham Love for his leadership over the last six years. Graham has overseen a number of successes in his time as Chair and has set the foundations for The Royal Mint of the future.

Chris Walton added:

It is a privilege to join The Royal Mint during this fascinating period of transformation. With sustainability at its core, the Mint is evolving for the future, and I am eager to support its growth and build on a remarkable legacy.

The Royal Mint is one of the oldest companies in the world – supplying coins to the UK for over 1,100 years. It also produces commemorative coins, to mark events of national, historical and cultural significance, offers investment in precious metals, a jewellery collection and recycling precious metals from e-waste.

The Chair of The Royal Mint is responsible for providing strategic direction and works closely with the Board of Directors and Executive Team.

The press release issued by HM Treasury on 29 January 2025.

Charter for Budget Responsibility has been approved in the House of Commons, enshrining new fiscal rules into law.

Today (Wednesday 29 January) the House of Commons voted to enshrine the Charter for Budget Responsibility and the new fiscal rules into law.

These fiscal rules provide the stability which underpins the Plan for Change and the Government’s number one priority to kickstart economic growth.

There are two new non-negotiable fiscal rules. The first is the stability rule which ensures that day to day spending is matched by tax revenues, so the Government is only borrowing to invest.

The second is the investment rule which requires the government to reduce net financial debt as a share of the economy, keeping debt on a sustainable path while allowing much needed investment to grow the economy.

Chancellor of the Exchequer, Rachel Reeves said:

In our Plan for Change we were clear that our top priority is growth built on stability. Today I have announced how I will go further and faster on growth and our fiscal rules, which have been enshrined in law, are now non-negotiable and the bedrock of that stability.

Through the Charter, fiscal and economic stability will be enhanced by confirming the government’s intention to move to one major fiscal event per year, giving families and businesses certainty of tax and spending plans.

Stability is also reinforced by confirmation that the Treasury will conduct Spending Reviews every two years, setting spending plans for at least three, to ensure public services have certainty on their funding.

Fiscal transparency and accountability will also be strengthened as the Chancellor has accepted all of the recommendations of the OBR’s review of the March 2024 forecast for Departmental Expenditure Limits, including to improve the spending information that the Treasury shares with the OBR.

In addition, the Charter now requires the OBR to report on the long-term impacts of capital investment and other policies at fiscal events, showing how economic growth and the health of the public balance sheet is bolstered by good investment decisions.

The Charter also outlines the detail of the fiscal lock – the first legislation passed by this government – so that no government can announce fiscally-significant measures without being subject to an independent assessment by the OBR, ensuring they can never again be sidelined.