The Government recognises that increasingly capable artificial intelligence systems present both opportunities and risks for the financial sector. As noted in July’s Financial Stability Report, rapid progress in frontier AI capabilities presents a significant increase in the risks to financial stability from cyber and operational vulnerabilities.

HM Treasury works closely with the financial regulators, the National Cyber Security Centre and industry to strengthen the resilience of the UK financial system in the face of evolving cyber threats, including those enabled by AI. The authorities continue to work with firms through established resilience frameworks and industry bodies, including the Cross Market Operational Resilience Group (CMORG), which issued guidance for firms in June to help them assess their current capabilities and accelerate their response.

Frontier AI also has the potential to strengthen the financial sector’s cyber defences. To help firms share best practices on this front, the Bank of England has established a forum for systemically important UK financial institutions and Financial Market Infrastructure to share their experiences on the use of frontier AI for cyber defence.

War bonds are not being considered by the government. The Defence Investment Plan, which places defence on a stronger, more sustainable footing, is being funded by reprioritising public spending, with £10.3 billion already identified and a further £4.7 billion to be confirmed at Budget 2026 in a fair and balanced way.

The Government is clear that our core gilt programme is the most stable and cost-effective way of raising finance to fund the day-to-day activities of the government, owing to the depth and liquidity of the market. Finance raised via gilts or National Savings and Investments products is generally not tied to specific areas of government spending, in order to offer the best value-for-money for taxpayers. Issuing bonds aimed at specific areas of spending risks fragmenting the gilt market, which would not be consistent with the government’s debt management objective of minimising the cost of long-term financing.

The Government remains open to the introduction of new debt instruments; however, HM Treasury and the UK Debt Management Office apply certain criteria when considering the launch of a new type of debt instrument. These include consistency with the Government’s debt management objective (to minimise the long-term cost of financing, taking into account risk); the impact on the general functioning of the gilt market; the expected size, sustainability, and nature of investor demand for the instrument; and an assessment of the cost and resource commitment required for its introduction into the market.

The Government would also need to be satisfied that any new instrument would meet value-for-money criteria, enjoy strong and sustained demand in the long term, and be consistent with wider fiscal objectives. We keep the introduction of new debt financing instruments under regular review.

The UK and Canada share a common objective of strengthening Allied defence industrial capacity through closer international cooperation. The Multilateral Defence Mechanism (MDM) and Canada's proposed Defence, Security and Resilience Bank (DSRB) are intended to address related challenges within the defence industrial ecosystem.

Following the joint-PM statement at the NATO Ankara summit in July, we committed to working closely with our Canadian allies on how the MDM and DSRB can work together, and we continue to do this.

The Government wants consumers to be able to access high-quality support to make informed decisions about their finances and is committed to the safe adoption of AI in financial services, including financial guidance and advice. We support a principles-based, outcomes-focused approach to AI regulation enabling firms to innovate while maintaining high standards of consumer protection.

We recognise that general-purpose AI technology has already changed the nature of financial advice and guidance.

On 6 July, the Financial Conduct Authority published the Mills Review, which recommended a rapid FCA review on this issue.

On 14 July, the Government published the Financial Services AI Champions’ Adoption Plan, which included a high-priority recommendation that the FCA should consider the impacts of financial guidance and advice-like outputs through general purpose large language models (LLMs).

The Government are engaging with the FCA to determine next steps. This is an important piece of work that complements the Government’s broader ambition to make the UK a global leader in AI, leveraging our dual strengths in financial services and AI to drive growth, productivity and better, safe outcomes for consumers.

HMRC publishes information on the total amount of tax debt owed. Information on what proportion of a tax debt balance at a particular date is subsequently paid could only be provided at disproportionate cost. In 25-26, HMRC collected around £83 billion in tax debt.

The Government's ambition is to support good growth across all parts of the United Kingdom. As set out in the Prime Minister's recent Machinery of Government Statement, No10 North will be responsible for driving good growth through devolution and working in close partnership with local leaders, businesses, and communities to strengthen place-based growth.

We are also committed to fundamentally rewiring the way our country works, transferring greater powers, funding and accountability to the local leaders who know what it takes to drive growth and productivity in their areas.

The government has invested £10m into Team Derby – a city wide partnership between business and regional government designed to turn major national investments into local jobs, skills and regeneration opportunities. The wider East Midlands is receiving £2bn via the Transport for City Regions fund which will enable design of a new mass transit system to connect Derby and Nottingham and drive growth and productivity by better integrating transport networks.

The Chancellor has announced that the Green Book discount rate will be reduced from 3.5% to 3.0%, in line with recommendations from independent academics. This will place greater value on the long-term benefits of investment and strengthen the case for transformational projects that drive growth – wherever they take place.

At Budget, the government will publish a fiscal devolution roadmap which will set out a path to replacing grants from central government with a share of local income tax for every mayor beginning in 2028, such that where a region grows its tax base, it benefits from the increased receipts. This will sit alongside greater retention of the revenue from business rates for local councils and strategic authorities. The long-term certainty of funding via taxation will provide more flexibility and enable greater investment to fund interventions that will deliver a return.

Details of all our special advisers are published by the Cabinet Office via its Annual Report on Special Advisers (the latest report from July 2026 avaialble via https://assets.publishing.service.gov.uk/media/6a6b4cbf862aaf18d9c62a50/Annual_Report_on_Special_Advisers_2026__1_.pdf , details of all Direct Ministerial Appointments are available via the gov.uk DMA announcement portal via https://apply-for-public-appointment.service.gov.uk/direct-ministerial-appointments-announcements

The Government does not comment on financial market movements. Last year borrowing fell 1 percentage point (over £20 billion) to its lowest level in six years. The IMF have forecast that, between 2025-2030, the UK will be reducing the deficit by more than any other G7 or G20 country.

The Government does not comment on financial market movements. Last year borrowing fell 1 percentage point (over £20 billion) to its lowest level in six years. The IMF have forecast that, between 2025-2030, the UK will be reducing the deficit by more than any other G7 or G20 country.

The Government will carefully consider the Law Commission's Review of the Friendly Societies Acts 1974 and 1992.

As set out in the 2026-27 Debt Management Report, when determining the annual financing remit the Government issues an appropriate balance of conventional and index-linked gilts, with the latter linked to the Retail Prices Index. In determining this mix, the Government considers the level of structural demand, the diversity of the investor base and its preferences for inflation exposure.

The report shows that the stock of index-linked gilts stood at around £668 billion at the end of 2025 in nominal uplifted terms, equivalent to around 25.2% of the Government's debt portfolio. The proportion of index linked debt in the Government's wholesale debt portfolio is higher than other G7 countries, largely due to the historical high level of structural demand for such instruments, from pension funds in particular.

The Government continues to provide generous support to the theatre sector through Theatre Tax Relief (TTR). TTR is designed to support expenditure incurred in the production of a theatrical performance. Since 1 April 2025, qualifying touring productions have been eligible for relief at a rate of 45 per cent, compared with 40 per cent for non-touring productions.

Changes to existing tax reliefs must be assessed against their effectiveness, targeting, complexity and value for money, and considered in the context of the wider public finances. Tax policy decisions are taken by the Chancellor at fiscal events.

The Government continues to provide generous support to the theatre sector through Theatre Tax Relief (TTR). TTR is designed to support expenditure incurred in the production of a theatrical performance. Since 1 April 2025, qualifying touring productions have been eligible for relief at a rate of 45 per cent, compared with 40 per cent for non-touring productions.

Changes to existing tax reliefs must be assessed against their effectiveness, targeting, complexity and value for money, and considered in the context of the wider public finances. Tax policy decisions are taken by the Chancellor at fiscal events.

The UK faces rising threats, and the government is responding by boosting defence spending. The £10.3 billion of funding for the Defence Investment Plan has primarily been secured by reallocating capital budgets from across government to the MOD.

This includes a 1% top-slice of departmental capital budgets, additional reductions to Department for Transport and Department for Energy Security and Net Zero spending, proceeds from asset sales, and the transfer of certain risks from the Ministry of Defence to HM Treasury.

A detailed breakdown of these measures is set out in the Defence Investment Plan Funding explainer.

Making Tax Digital (MTD) for Income Tax is being introduced gradually, with taxpayers joining in phases according to their level of qualifying income.

The phased approach enables HMRC to build on experience from each stage of implementation before additional groups are brought into the regime.

HMRC is actively supporting this transition through a marketing campaign targeted at unrepresented customers, supported by intensive multi-channel engagement and communications with taxpayers, agents, representative bodies and software developers and targeted guidance to help those affected prepare.

We have already delivered an ambitious set of ongoing reforms to boost the UK’s capital markets to ensure the UK is the best place for firms to start, scale, list and stay.

Our stock markets are showing signs of renewed momentum, with over £26.8 billion raised since the start of 2025 through IPOs and follow-on issuances.

The government has also established the Listings Taskforce to ensure the UK attracts the best and brightest businesses from the UK and around the world, to list on UK markets.

Protecting the integrity of our democratic and electoral processes is a priority for this Government.

The Financial Conduct Authority (FCA) does not intend to undertake such a review. The FCA has taken steps to address the risks associated with football club sponsorship arrangements involving unauthorised cryptoasset firms. Oversight of sponsorship arrangements involving political parties or politicians falls under electoral law and is a matter for the Government and the independent Electoral Commission.

The Government is bringing forward a number of policy reforms on political finance as part of the Representation of the People Bill. These include reforms to rules around political donations, as well as new rules relating to political donations in the form of cryptoassets, donations from companies and LLPs, and a cap on donations from overseas electors.   

In March 2026, alongside the publication of the independent Rycroft Review into countering foreign financial interference and influence in UK politics, the Government announced a moratorium on political donations made via cryptoassets. This includes political donations which take the form of sponsorships.

Introducing VAT on private schools will raise £1.7 billion per year by 2029/30. Since the VAT measure on private school fees has come into effect, the Office for Budget Responsibility has continued to re-cost the revenue raised each year. At Autumn Budget 2025 the re-costing of the measure showed it will raise around £40 million per year more than originally forecast, reaffirming the detailed analysis conducted when this policy was introduced.

The overall fall in private school pupil numbers since the policy came into effect is in line with expectations and reflects demographic change across the whole school system, not the VAT policy alone. We have seen pupil numbers fall across primary, secondary, and independent schools alike. This is primarily driven by falling birth rates, following a peak in 2012, as cohorts move through secondary school age and smaller year groups enter primary.

The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.

The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.