HM Treasury has announced the creation of a new Scale-Up Unit. The launch was announced by the Chancellor of the Exchequer, Rachel Reeves MP, during a visit to Leeds. The Unit is expected to begin working with fintechs from early 2026 and is intended to support financial services firms, including banks, insurers and fintechs, by providing tailored regulatory guidance. It will offer a single point of contact for navigating Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) requirements.

HM Treasury has announced pension fund reforms as part of the government's plan to 'boost British business and increase returns for savers'. By 2027, defined contribution (DC) pension funds will be required to publicly disclose their levels of investment in UK businesses, alongside their costs and net investment returns, which will allow employers and savers to compare schemes and make informed choices. Under the plans, pensions funds will also be required to compare their performance data against competitor schemes, including at least two schemes managing at least £10bn in assets, and schemes performing poorly for savers will not be allowed to take on new business from employers, with The Pensions Regulator and Financial Conduct Authority (FCA) having a full range of intervention powers. These reforms are in line with the government's 'Value for Money' framework to improve outcomes for savers and consolidate the DC pensions market. The government's reform plans are subject to a consultation by the FCA and build on the government's Mansion House compact that encouraged pension funds to invest at last 5% of their assets in unlisted equity.

HM Treasury has released information regarding the annual increase to public service pensions for 2025. Pensions that have been in payment for a full year will see a 1.7% increase from 7 April 2025, in line with the September-to-September rise in the Consumer Price Index (CPI). Those pensions in payment for less than a year will receive a proportionate increase based on the number of months they have been paid. To assist scheme administrators in correctly applying these increases, HM Treasury has produced multiplier tables that account for increases from previous years. These tables are designed to ensure accurate implementation of the 2025 pensions increase across public service pension schemes.

HM Treasury has unveiled plans to reform occupational defined benefit (DB) pension schemes, allowing greater flexibility in the management and investment of surplus funds. The changes aim to unlock an estimated £160 billion currently held in surplus by approximately 75% of schemes. The reforms will enable well-performing funds to invest surplus capital into the wider economy, potentially boosting growth and benefiting both businesses and pension scheme members. Legislative changes are proposed to allow all DB schemes to modify their rules for surplus extraction, subject to trustee-employer agreement. The government emphasises that these changes will be implemented with appropriate safeguards to protect member benefits. Full details of the surplus policy will be outlined in the government's response to the Options for Defined Benefits consultation, expected in Spring 2025.

HM Treasury has announced that unused £1m allowances for agricultural property relief and business property relief will be transferable between spouses and civil partners from 6 April 2026, aligning treatment with existing nil-rate band and residence nil-rate band provisions. The change enables surviving spouses to benefit from 100% inheritance tax relief on up to £2m of combined agricultural and business assets, compared to the £1m individual limit announced at Autumn Budget 2024. Under the reformed system, 100% inheritance tax relief will be restricted to the first £1m of combined agricultural and business property, with 50% relief applying above this threshold at an effective rate of 20% rather than the standard 40%. The tax may be paid in equal instalments over 10 years interest-free. Combined with nil-rate bands, surviving spouses with farmland can now pass on up to £2.65m without inheritance tax liability. HM Treasury estimates 375 of the wealthiest estates claiming agricultural property relief will pay additional inheritance tax in 2026-27, while 190 estates will benefit from the transferability provisions, with 60 estates avoiding increased tax entirely.

HM Treasury has announced on 23 March 2025 a £600m investment package to train 60,000 construction workers by 2029. The funding includes £100m for Technical Excellence Colleges, £165m for college construction courses, and £100m for Skills Bootcamps. The Construction Industry Training Board will contribute an additional £32m for industry placements. A new Construction Skills Mission Board, co-chaired by government and Mace's Executive Chair, will develop and implement a construction skills action plan. The initiative aims to address the sector's 35,000 current job vacancies and support the government's target to build 1.5 million homes.

The HM Treasury has published a policy paper detailing its annual report for 2023 to 2024 on anti-money laundering and counter-terrorist financing (AML/CFT) supervision. The report fulfils the Treasury's obligation under regulation 51 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017) to provide an overview of supervisory activities and covers the period from 6 April 2023 to 5 April 2024. It includes data on supervisory and enforcement actions by both public sector and professional body supervisors, highlighting notable changes in supervisory activities and fines issued. Key areas covered in the report include gatekeeping and risk assessment, monitoring supervised businesses, ensuring compliance, and cooperation and information sharing.

The Law Society has confirmed that HM Treasury has officially approved the Legal Sector Affinity Group’s (LSAG) updated anti-money laundering (AML) guidance for the legal sector 2025. Key revisions to the guidance include new information regarding the Economic Crime Levy requirements for firms with a turnover exceeding £10.2m, supply chain risk assessment and the Register of Overseas Entities. Additional updates cover client verification procedures, third party source of funds, domestic politically exposed persons (PEPs), and new defences under The Economic Crime and Corporate Transparency Act 2023 (ECCTA) for de minimis amounts and mixed-property transactions. The guidance aims to help legal professionals and firms comply with the Money Laundering Regulations 2017, as amended.

HM Treasury has confirmed the implementation of legislation introduced in 2023 to address the disparity in tax relief between relief at source and net pay workplace pension schemes for low-paid workers. The policy aims to provide approximately one million individuals in net pay schemes with an annual top-up payment of around £70, ensuring similar outcomes regardless of the pension scheme type. HM Revenue and Customs (HMRC) is currently developing an IT solution to identify eligible individuals and facilitate these payments. The initiative will commence with the 2024-25 tax year, with the first payments expected to be offered to eligible individuals in 2026.

HM Treasury (HMT) has established the Dematerialisation Market Action Taskforce (DEMAT), chaired by Mark Austin CBE, to advance reforms to the UK’s shareholding framework, following recommendations from the Digitisation Taskforce’s final report, published on 15 July 2025. HMT has accepted the report’s three-step approach to remove paper share certificates and transition to a fully intermediated shareholding system. Step 1 involves replacing certificated share registers with digitised registers before the end of 2027; Step 2 focuses on improving the intermediated system during the current Parliamentary term and Step 3 will transition all shares from digitised registers into the intermediated system. DEMAT is required to report back by summer 2026 with a recommended go-live date for Step 1 and an implementation plan, while collaborating with market participants to prepare for Steps 2 and 3. HMT has also published DEMAT’s terms of reference, setting out its objectives and governance structure.

HM Treasury (HMT) and Pool Reinsurance Company Limited (Pool Re) have agreed a new Retrocession Agreement, effective from 1 April 2025, under the Reinsurance (Acts of Terrorism) Act 1993. The agreement is part of a broader framework to ensure that industry and commerce can continue to purchase insurance cover against the risk of loss due to terrorist attacks.

An interim report from HM Treasury's Covid Counter Fraud Commissioner has identified £1.4bn in losses from ‘failed’ pandemic-era Personal Protective Equipment (PPE) contracts. According to a Treasury press release, £182m has been recovered to date, with some PPE suppliers referred to the National Crime Agency for suspected fraud. Of the remainder, £762m is considered unrecoverable due to over-ordering and delayed checks, while £468m remains potentially recoverable. The report attributes the majority of the losses to the purchase of surgical gowns, 52% of which were non-compliant with requirements. A second phase investigation into other pandemic spending programmes including furlough and bounce-back loans is under way. A final report is due at the end of the Commissioner’s term in December 2025.