Mayors will decide whether to introduce a levy and, if so, will consult on specific proposals, including how revenue will be used to support growth. This will help them to find an appropriate balance between supporting local economic priorities, including tourism, ensuring a levy is affordable, and providing stability and certainty for businesses. Impacts will depend on local decisions and we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.

The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.

The Government is committed to increasing the UK's long-term growth potential.

The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.

We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.

Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.

In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.

The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.

The Government is committed to increasing the UK's long-term growth potential.

The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.

We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.

Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.

In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.

The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.

The Government is committed to increasing the UK's long-term growth potential.

The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.

We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.

Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.

In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.

The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.

The Government is committed to increasing the UK's long-term growth potential.

The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.

We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.

Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.

In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.

The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.

The Government is committed to increasing the UK's long-term growth potential.

The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.

We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.

Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.

In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.

Bulk purchase annuities are provided by authorised insurers and regulated by the Prudential Regulation Authority. This requires insurers to hold capital and manage risks so that they can meet their long-term obligations to policyholders.

Where a pension scheme secures members’ benefits through an insurance buy-out, responsibility for paying those benefits transfers from the scheme to the insurer. Eligible annuity policyholders are also protected by the Financial Services Compensation Scheme if an authorised insurer fails.

The Office for Budget Responsibility (OBR) produces its forecasts independently and is responsible for the assumptions underpinning them.

The OBR’s March forecast incorporates the impacts of government policies announced to date, including impacts on the supply side of the economy, where these meet relevant OBR criteria.

The government is committed to going further to deliver higher growth in the long term.

We have set out a strategy centred on economic stability, boosting public and private investment, and supply-side reform to raise productivity. This includes reforms such as the Planning and Infrastructure Act, the Industrial Strategy, pensions reforms to unlock investment, and the Growth and Skills Levy.

In her 2026 Mais Lecture, the Chancellor also set out three further priorities for raising the UK's long-term growth potential: empowering regional growth, embracing AI and innovation, and establishing a closer relationship with the European Union.

Following the UK's departure from the EU, duty-free allowances, including for cigarettes, were reintroduced for travellers arriving in Great Britain from EU member states.

This change took place at the end of the transition period on 31 December 2020.

Duty free allowances do not apply for travellers from the EU arriving in Northern Ireland. The enforcement controls required at the border to facilitate these allowances would run counter to the shared ambitions of the UK and the EU set out in the Windsor Framework and the principle of the frictionless movement of people and goods between Northern Ireland and Ireland.

There have been no changes to the duty free allowance for cigarettes since 2020.

The Financial Services Compensation Scheme (FSCS) funds its compensation costs through levies on the financial services sector and recoveries against firms that have failed. As FSCS levies industry following payment of compensation or securing continuity for policyholders, it has the ability to borrow privately from a £3 billion revolving credit facility to meet short-term funding needs, with any lending repaid through levies. As a last resort, it can also request to borrow from HM Treasury, with any government borrowing also repaid through levies. This means that, even in the event of last-resort public financial support, the financial services sector will fund FSCS’s costs through a levy alongside recoveries.

Under rules set by the Prudential Regulation Authority (PRA), eligible life insurance policyholders – including customers of life annuity and bulk purchase annuity contracts – are 100% protected by the FSCS for any claims against an authorised insurer in the event that it fails. For a life insurance failure, levies would be payable by other life insurance and pensions providers.

The PRA sets the rules for policyholder protection including the FSCS funding of insurance compensation, including long-term insurance such as annuities. In doing so, it has rules in place to ensure FSCS can safely levy the insurance sector and meet its costs. The FSCS also closely monitors and regularly forecasts potential claims and compensation costs to ensure it can meet these within its available financial means. The PRA also conducts stress tests of life insurers, most recently in 2025.

Finally, FSCS also maintains contingency plans for a potential life insurance failure. These plans are subject to independent assurance through FSCS's assurance framework and are designed to support an effective and coordinated response, including engagement with regulators, firms and other stakeholders.

The Financial Services Compensation Scheme (FSCS) funds its compensation costs through levies on the financial services sector and recoveries against firms that have failed. As FSCS levies industry following payment of compensation or securing continuity for policyholders, it has the ability to borrow privately from a £3 billion revolving credit facility to meet short-term funding needs, with any lending repaid through levies. As a last resort, it can also request to borrow from HM Treasury, with any government borrowing also repaid through levies. This means that, even in the event of last-resort public financial support, the financial services sector will fund FSCS’s costs through a levy alongside recoveries.

Under rules set by the Prudential Regulation Authority (PRA), eligible life insurance policyholders – including customers of life annuity and bulk purchase annuity contracts – are 100% protected by the FSCS for any claims against an authorised insurer in the event that it fails. For a life insurance failure, levies would be payable by other life insurance and pensions providers.

The PRA sets the rules for policyholder protection including the FSCS funding of insurance compensation, including long-term insurance such as annuities. In doing so, it has rules in place to ensure FSCS can safely levy the insurance sector and meet its costs. The FSCS also closely monitors and regularly forecasts potential claims and compensation costs to ensure it can meet these within its available financial means. The PRA also conducts stress tests of life insurers, most recently in 2025.

Finally, FSCS also maintains contingency plans for a potential life insurance failure. These plans are subject to independent assurance through FSCS's assurance framework and are designed to support an effective and coordinated response, including engagement with regulators, firms and other stakeholders.

The Financial Services Compensation Scheme (FSCS) funds its compensation costs through levies on the financial services sector and recoveries against firms that have failed. As FSCS levies industry following payment of compensation or securing continuity for policyholders, it has the ability to borrow privately from a £3 billion revolving credit facility to meet short-term funding needs, with any lending repaid through levies. As a last resort, it can also request to borrow from HM Treasury, with any government borrowing also repaid through levies. This means that, even in the event of last-resort public financial support, the financial services sector will fund FSCS’s costs through a levy alongside recoveries.

Under rules set by the Prudential Regulation Authority (PRA), eligible life insurance policyholders – including customers of life annuity and bulk purchase annuity contracts – are 100% protected by the FSCS for any claims against an authorised insurer in the event that it fails. For a life insurance failure, levies would be payable by other life insurance and pensions providers.

The PRA sets the rules for policyholder protection including the FSCS funding of insurance compensation, including long-term insurance such as annuities. In doing so, it has rules in place to ensure FSCS can safely levy the insurance sector and meet its costs. The FSCS also closely monitors and regularly forecasts potential claims and compensation costs to ensure it can meet these within its available financial means. The PRA also conducts stress tests of life insurers, most recently in 2025.

Finally, FSCS also maintains contingency plans for a potential life insurance failure. These plans are subject to independent assurance through FSCS's assurance framework and are designed to support an effective and coordinated response, including engagement with regulators, firms and other stakeholders.

His Majesty’s Government has assessed that advances in frontier artificial intelligence models have the potential to increase cyber security risks to the UK financial sector by increasing the speed, scale and accessibility of certain cyber capabilities. In particular, frontier AI models may assist in vulnerability discovery, exploitation, and other cyber operations, potentially shortening the time between vulnerabilities being identified and exploited. While frontier AI models may increase cyber risks, they also present opportunities to strengthen cyber defences and improve resilience.

The Government, working with the Bank of England, the Financial Conduct Authority, the National Cyber Security Centre and the AI Security Institute, continues to monitor developments closely and assess their implications for financial stability and operational resilience.

To support the sector’s preparedness, HM Treasury, the Bank of England and the Financial Conduct Authority have engaged extensively with industry and published a joint statement on frontier AI models and cyber resilience, which sets out the actions firms should take to mitigate cyber risks arising from advanced AI capabilities. The authorities have also drawn attention to relevant guidance produced by the National Cyber Security Centre on AI-enabled cyber threats and cyber resilience. The authorities continue to work with firms through established resilience frameworks and industry bodies, including the Cross Market Operational Resilience Group (CMORG), to ensure that the UK financial sector remains resilient to evolving cyber threats.

HM Treasury concluded its review of the Green Book in June 2025. Since then, it has published a clearer, shorter Green Book, ensuring decisions are no longer based solely on single metrics such as benefit-cost ratios (BCRs), but instead consider the full range of potential impacts.

HM Treasury has streamlined business case guidance, and has published the findings of an independent review into the Green Book discount rate, ensuring the government is taking a fair view of long-term investment proposals.

HM Treasury is also piloting place-based business cases (PBBCs) with four early adopter locations, working in close partnership with regional, local and devolved governments, including mayors, to test a new approach to appraisal that puts local objectives at the centre. Business cases for major projects and programmes are being published consistently, meaning the public can have confidence that every pound of taxpayers’ money is being spent on projects that deliver the best possible value.

HM Treasury has published a report on its progress in implementing the conclusions of the Green Book Review in 2025. The report can be found here: https://www.gov.uk/government/publications/green-book-review-2025-one-year-on

The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.

The Government is committed to increasing the UK's long-term growth potential.

The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.

We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.

Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.

In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.

The Financial Services and Markets Bill simplifies how payment systems are regulated by abolishing the Payment Systems Regulator (PSR) and transferring its responsibilities to the Financial Conduct Authority (FCA). In doing so, it gives the FCA objectives and powers generally equivalent to those currently held by the PSR, including the ability to make rules or give directions for the purpose of regulating payment system fees and charges. This ensures there is continuity in regulation and that the FCA can carry out its new responsibilities effectively.

The FCA’s power to regulate payment system fees and charges would be subject to challenge on judicial review principles. A challenge to equivalent powers held by the PSR is determined by judicial review principles, and the Bill maintains the same test when those functions transfer to the FCA. This is also consistent with the existing approach taken elsewhere in the Financial Services and Markets Act 2000.

The Government recognises that regulators’ powers should be subject to appropriate safeguards. Powers to regulate payment system fees and charges must advance payment systems objectives. The Bill ensures before exercising those powers, the FCA must comply with procedural requirements, such as undertaking a consultation, which help to ensure decisions are transparent, evidence-based and proportionate.

Energy supplies used in certain forms of transport are exempt from the main rate of Climate Change Levy (CCL). This includes electricity used to electrify rail lines, light a railway carriage transporting passengers and light the cab interior of a freight train transporting goods.

Information on the estimated cost of tax reliefs, including CCL exemptions, is published on GOV.UK and can be found in the annual statistics on tax reliefs. However, it is not possible to provide the annual tax cost of exempting rail operators from CCL, as HMRC does not collect this information.

The Government’s ambition is to make the UK a global leader in AI. Encouraging safe adoption is an essential part of realising that ambition. We will continue to work closely with regulators and industry to ensure innovation proceeds safely and responsibly and that any risks to financial markets are identified and mitigated.

The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying, monitoring and taking action to remove or reduce systemic risks to the UK financial system. The FPC’s April 2025 Financial Stability in Focus publication set out potential risks to financial stability that could result from increasing AI use, including market related risks, and their response to these.

The Government is committed to maintaining the UK’s position as a leading global financial centre, supported by a competitive, innovative and well-regulated payments ecosystem that delivers good outcomes for consumers, businesses and the wider economy.

The Financial Services and Markets Bill simplifies how payment systems are regulated by abolishing the Payment Systems Regulator and transferring its functions to the Financial Conduct Authority. The Bill gives the FCA objectives and powers that are equivalent to those currently held by the PSR, ensuring there is continuity in regulation and that the FCA can carry out its new responsibilities effectively.

The price control provision is not an expansion of regulatory powers. It clarifies and replicates powers already exercisable by the PSR, so the FCA has the same tools where intervention is justified to protect service-users and support effective competition.

At the same time, the Government recognises that regulators must act proportionately and that their powers should be subject to appropriate safeguards. The Bill therefore strengthens the framework by requiring the FCA to consult before exercising this power, a safeguard that is not always required under the current regime. This will help ensure decisions are transparent, evidence-based and proportionate.

The Government is committed to maintaining the UK’s position as a leading global financial centre, supported by a competitive, innovative and well-regulated payments ecosystem that delivers good outcomes for consumers, businesses and the wider economy.

The Financial Services and Markets Bill simplifies how payment systems are regulated by abolishing the Payment Systems Regulator and transferring its functions to the Financial Conduct Authority. The Bill gives the FCA objectives and powers that are equivalent to those currently held by the PSR, ensuring there is continuity in regulation and that the FCA can carry out its new responsibilities effectively.

The price control provision is not an expansion of regulatory powers. It clarifies and replicates powers already exercisable by the PSR, so the FCA has the same tools where intervention is justified to protect service-users and support effective competition.

At the same time, the Government recognises that regulators must act proportionately and that their powers should be subject to appropriate safeguards. The Bill therefore strengthens the framework by requiring the FCA to consult before exercising this power, a safeguard that is not always required under the current regime. This will help ensure decisions are transparent, evidence-based and proportionate.