Written questions by Morton.

What estimate she has made of the (a) number of savers who will exceed the new reduced annual ISA limit and (b) additional revenue from that measure.

The overall annual ISA limit has not changed and remains at £20,000. Individuals under 65s and subscribing £12,000 in a Cash ISA can still invest the remaining £8,000 in Stocks & Shares and/or Innovative Finance ISAs and up to £4,000 in a Lifetime ISA. HMRC estimate that 1.3 million individuals aged under 65 subscribed over £12,000 into Cash ISAs based on the latest available data. The exchequer impact for this measure, combined with other savings measures, has been published (Page 79) in the AB25 Budget policy costing document: Budget_2025-Policy_Costings.pdf

What assessment her Department has made of the potential impact of the level of taxation set out in the Budget on savings, dividends and property income on small investors, retired people relying on investment income, and small business owners.

The Government is taking action to ensure income from assets are taxed more fairly. That is why we have increased taxes on property, dividend and savings income to narrow the gap between tax paid on work and tax paid on income from assets. The majority of taxpayers, and the majority of pensioners, have no taxable savings, dividend or property income and will pay no more tax as a result of these changes. Those with small amounts of income from assets will continue to be protected by tax-free allowances, and all income from savings and investments held in ISAs will continue to be entirely tax-free.

What assessment her Department has made of the potential impact of the Budget 2025 on areas with lower average incomes in each region.

HM Treasury’s ‘Impact on households’ publication, produced alongside Budget 2025, shows that the impact of government tax, welfare and public service spending decisions from Autumn Budget 2024 onwards are benefit households in the lowest income deciles the most, on average HM Treasury does not produce a distributional assessment of policy decisions at a subnational level.

What assessment her Department has made of the potential impact of the Budget 2025 on (a) investment and (b) hiring decisions by small and medium-sized enterprises.

We are cutting borrowing and debt, and supporting the Bank of England by tackling the persistent high inflation that dampens investment in the UK and slows economic growth. The Government set out its overall approach for supporting SMEs in the Small Business Strategy published in July 2025 and built on this with targeted reforms to support small businesses at Autumn Budget 2025. We are supporting employment and skills by changing the rules to fully fund SME apprenticeships training costs for eligible people under the age of 25. At the Budget we announced an Entrepreneurship which includes the largest ever injection of capital into the British Business Bank. Over the next five years, the British Business Bank will enable up to an additional £10 billion in small business lending through guarantees. We are also doubling the eligibility of our enterprise tax incentives to boost scale-ups and consulting on plans to reduce business energy prices.

What assessment her Department has made of the potential impact of the Budget on self-employed workers, including freelancers and contractors.

The Government is committed to a fair tax system that supports small firms and the self-employed, while ensuring the ongoing funding of essential public services and economic stability. The Budget raises revenue in a fair and progressive way, and the Government is sticking to its manifesto pledge not to increase the headline rates of income tax, National Insurance and VAT and its commitments in the Corporate Tax Roadmap. We are providing support for small businesses and the self-employed in a number of areas. We are introducing the toughest late payment laws in the G7. Through the new Business Growth Service, small businesses will be able to access support with skills training, recruitment, or accessing Start Up Loans and Export Finance.We are taking wider measures to ensure the wider economic environment is conducive to growth. We are cutting borrowing and debt, and supporting the Bank of England by tackling the persistent high inflation that dampens investment in the UK and slows economic growth. Government took measures at Budget to reduce consumer price inflation by 0.4pp in 2026/27.

How many people will move into higher tax bands due to the freezing of income tax and National Insurance thresholds for three years; and estimate she has made of the revenue raised through these measures.

The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below: https://obr.uk/download/november-2025-economic-and-fiscal-outlook-detailed-forecast-tables-receipts/?tmstv=1764165511 The estimated revenue from maintaining the personal income tax and equivalent national insurance thresholds at current levels for a further three years until April 2031 can be found in Table 4.1, policy 46 in HMT’s Budget 2025 document, linked below: Budget 2025 document - GOV.UK

What estimate she has made of the average increase in annual tax paid by households earning between £25,000 and £50,000 following the Autumn Budget 2025.

HM Treasury’s ‘Impact on households’ publication, produced alongside Budget 2025, shows that the impact of government tax, welfare and public service spending decisions from Autumn Budget 2024 onwards are progressive and benefit households in the lowest income deciles the most, on average, with increases in tax concentrated on the highest income households. On average, all but the richest 10% of households will benefit from policy decisions in 2028-29.

What analysis her Department has carried out of the potential macro-economic effects (on investment, business growth, rental markets, and savings behaviour) of raising dividend, property and savings income tax rates by two percentage points as part of the 2025 Autumn Budget.

Economic forecasts, including assessments of the impact of policy decisions, are the responsibility of the independent Office for Budget Responsibility (OBR). The OBR publishes its forecast in the Economic and Fiscal Outlook (EFO). The OBR’s latest EFO can be found here: Economic and fiscal outlook – November 2025 - Office for Budget Responsibility. The OBR does not expect a material impact on economy-wide growth, investment, or savings behaviour as a result of Budget 2025 tax changes.

What assessment she has made of the potential impact of the level of taxation as a result of the Autumn Budget 2025 on the economy.

HM Treasury does not publish forecasts of the economy. Forecasts, including assessments of the impact of policy decisions, are the responsibility of the independent Office for Budget Responsibility (OBR). The OBR publishes its forecast in the Economic and Fiscal Outlook (EFO). The OBR’s latest EFO can be found here: Economic and fiscal outlook – November 2025 - Office for Budget Responsibility.  The OBR does not expect a material impact on economy-wide growth as a result of Budget 2025 tax changes.

Whether she has made an estimate of the number and demographic profile of savers impacted by the reduction in the annual cash ISA allowance; and whether she plans to introduce alternative saving and investment incentives.

ISAs incentivise saving and investment by providing generous tax advantages to individual taxpayers. Individuals can save up to £20,000 into an ISA each year, and any savings income received within an ISA is tax free. In addition, due to the Personal Savings Allowance and the Starting Rate for Savings, in 2025-26 around 85 per cent of people with savings income will pay no tax on that income.This policy will affect those aged under 65 from April 2027, but the overall Individual Savings Accounts (ISAs) limit will remain at £20,000 for all savers when the annual Cash ISA limit is set at £12,000. Savers can still use stocks and shares ISAs beyond the £12,000 up to £20,000. It will not affect existing cash ISA savings.A policy costing note for the package of measures was published alongside the Budget, including the changes to the ISA regime. Following a technical consultation, new ISA regulations will be laid, and a Tax Impact and Information Note will be published in the spring.After around 800,000 savers aged 65 and above are carved-out, these changes will affect around 16% of Cash ISA subscribers, and around 12% of all ISA subscribers. This means around 1.3 million people are impacted by these changes.

What assessment she has made of the potential impact of applying National Insurance to salary-sacrificed pension contributions above £2,000 from 2029 on small and medium-sized employers, pension take-up and long-term pension savings; and whether she plans to bring forward measures to mitigate the impact on pension auto-enrolment and retirement preparedness.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. Small and medium-sized employers (SMEs) are less likely to be affected by these changes. Based on the latest ASHE data (2023/24), 28% of employees of SMEs use pension salary sacrifice, compared to 39% of larger employers. The government supports all individuals to save into pensions through a generous system of tax reliefs worth over £70 billion a year.

What modelling she has undertaken on applying National Insurance to salary-sacrificed pension contributions above £2,000; and whether she has made an assessment of the potential impact of that measure on pension contributions among middle-income workers.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. Individuals earning below £30,000 making pension contributions through salary sacrifice are overwhelmingly protected by a £2,000 cap, with few (c. 5%) making salary sacrifice contributions above this threshold.

How much the UK has raised for Ukraine through the use of proceeds from frozen Russian assets; and how this compares with contributions from the EU and G7 countries.

The Chancellor is committed to exploring a reparations loan to enable the value of sanctioned Russian sovereign assets held in the UK to be directed to supporting Ukraine. The government continues to work in partnership with international partners including the G7 and European Union to achieve this. To date, the UK has provided £21.8bn in support for Ukraine. This includes the commitment to the provide £2.26bn as part of the $50bn Extraordinary Revenue Acceleration Scheme for Ukraine, which utilised the extraordinary profits generated from immobilised Russian Sovereign Assets held in the EU.

What assessment she has made of the potential implications for her policies of EU proposals for a €140 billion reparations loan backed by Russian state-owned assets; and whether she is considering a similar mechanism.

The Chancellor is committed to exploring a reparations loan to enable the value of sanctioned Russian sovereign assets held in the UK to be directed to supporting Ukraine. The government continues to work in partnership with international partners including the G7 and European Union to achieve this. To date, the UK has provided £21.8bn in support for Ukraine. This includes the commitment to the provide £2.26bn as part of the $50bn Extraordinary Revenue Acceleration Scheme for Ukraine, which utilised the extraordinary profits generated from immobilised Russian Sovereign Assets held in the EU.

With reference to her Written Ministerial Statement of 5 November 2025 on Financial Inclusion Strategy, HCWS1019, what steps she is taking to ensure the effective delivery of the commitments in the Strategy; what mechanisms she will put in place to (a) monitor and (b) publish progress against its objectives; and what funding has been allocated to support implementation partners over the next two years.

Earlier this month, I published the Government’s Financial Inclusion Strategy setting out an ambitious programme of measures to improve financial inclusion and resilience for underserved groups across the UK. This includes interventions for both Government and industry to address a range of barriers individuals and households face in accessing financial products, including making it easier to open a bank account without standard ID, build a savings habit and access affordable credit. The Government recognises that action to improve financial inclusion requires a joined-up approach and will be working closely with industry and the regulator going forward to deliver on these interventions and make the strategy a reality. As part of developing the strategy, the Government has engaged with Financial Inclusion Committee members and other organisations on how to measure its impact. The Strategy’s implementation will be reviewed in two years’ time to provide an update on interventions and relevant outcomes-based metrics, which will reflect on the progress made across the sector. The Government has committed funding to support delivery of the strategy. This includes committing a further £132.5 million of dormant assets funding to Fair4All Finance for work that improves access to financial products and develops individuals’ ability to manage their finances in England, and over £100 million per year to the Money and Pensions Service to fund debt advice.

With reference to her Financial Inclusion Strategy, published in November 2025, CP 1424, what steps she is taking to help ensure an equitable geographic distribution of the 350 new banking hubs; whether the rollout will prioritise areas that have recently experienced bank branch closures; and what steps her Department is taking to ensure that the new digital pass for identity verification will be accessible for people with limited digital (a) access and (b) literacy.

Earlier this month, I published the Government’s Financial Inclusion Strategy setting out a range of interventions to improve financial inclusion and resilience for underserved groups across the UK. This included a key focus on addressing barriers around access to banking and digital inclusion. Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to championing sufficient access for customers. In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 190 are already open. Government is working closely with industry on this commitment. The locations of banking hubs are independently determined by LINK, the industry coordinating body responsible for making access to cash assessments. LINK will carry out an assessment wherever a branch closure is announced or if they receive a community request. LINK will recommend appropriate solutions where it considers that a community requires additional cash services. Some of the criteria that LINK considers are whether there is a bank branch remaining, population size, number of shops on the high street, distance to the nearest bank branch, public transport links and vulnerability of the population. In September, the government set out plans for a new government-backed Digital ID scheme. This Digital ID will make it easier for people across the UK to use vital government services, but will also streamline verification processes across private sectors too, such as when opening a new bank account. As part of the government’s forthcoming consultation on the new Digital ID scheme, the government will look at how to make the scheme inclusive, such as by integrating assistive technologies for those with physical or cognitive disabilities, and ensuring that physical alternatives are available for those without smartphones.

What discussions she has had with businesses on the potential impact of reductions in levels of relief through business rates relief schemes on those businesses.

The Treasury has engaged with a range of stakeholders on business rates about an array of topics. The Transforming Business Rates: Interim Report brings together extensive feedback from a broad range of stakeholders and outlines the Government’s next steps to deliver a fairer business rates system that supports investment and is fit for the 21st century.As announced at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure properties with rateable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure they benefit from much-needed certainty and support.

What assessment she has made of the potential impact of her policies on levels of inflation.

HM Treasury does not produce forecasts for the UK economy. Forecasting the economy, including the impact of Government policy decisions, is the responsibility of the independent Office for Budget Responsibility (OBR), which published its latest forecast on 26 March 2025. The Chancellor has asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions support stability and long-term growth.

What assessment she has made of recent trends in the level of government borrowing.

The Chancellor has asked the Office for Budget Responsibility to prepare an economic and fiscal forecast for publication on 26 November 2025, which will accompany the annual Budget. We are spending over £100bn a year on debt interest - equivalent to £1 in every £10 the government spends. The government’s fiscal strategy put the public finances on a sustainable path while prioritising investment to support long-term economic growth. The fiscal rules provide a blueprint for getting debt on a downward path over the next five years, while borrowing to invest in our economy. This is the responsible choice – to live within our means, reduce our levels of borrowing in the years ahead and support the Bank of England to get inflation down, so we can deliver on the priorities of working people and spend less on servicing debt.

What assessment she has made of the potential impact of reforms to (a) Agricultural Property Relief and (b) Business Property Relief on trends in the number of farm closures.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free. The Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data. The Government published a tax information and impact note on 21 July 2025 and this is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms. The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.