Tag: Treasury

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.

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.