Role Of HM Treasury
At a macro level, we are responsible for maintaining control over public spending, deciding how money is raised from taxpayers, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth. Our policy team advise Ministers and ensure they have the information they need when making decisions.
Our specific priorities are:
- reducing the deficit and rebalancing the economy
- spending taxpayers’ money responsibly and ensuring value for money
- creating a simpler, fairer tax system – alongside a well-functioning welfare system
- creating stronger and safer banks
- making corporate taxes more competitive
- making it easier for people to access and use financial services
- improving regulation of the financial sector to protect customers and the economy
A fair, balanced and effective taxation system is crucial to funding Government spending and delivering excellent public services. We support Ministers in making essential decisions on the UK’s national income.
It’s our job to help ensure that tax receipts are stable and sustainable, and that every business and citizen pays the tax they owe. We also work to make sure the tax regime remains globally competitive, and keep the UK at the forefront of tackling international tax avoidance.
Our Policy Advisers work across a range of areas, including personal income taxes, business taxes, environmental, transport and excise taxes (for example on alcohol, tobacco and gambling).
One of our key responsibilities is ensuring the Government is spending public money responsibly and providing value for money to all taxpayers. Delivering world-class public services entails making tough decisions on new policy initiatives. Major projects or reforms in health or education have to be affordable and delivered on time, while offering a fair, balanced and effective service to citizens. The Ministers we advise have to implement the most effective spending control possible to ensure each pound makes a difference to those in need.
As an organisation, we oversee public spending in the key public services and departments – including health, education, the police, the criminal justice system, local government, housing, culture and defence. This means working closely with other government departments, understanding the risks and challenges they face, and supporting them to achieve the best possible value for money.
HM Treasury advises Ministers on promoting a stable and efficient financial services sector, to support growth and promote excellent outcomes for consumers and businesses. This includes banking regulation (a very high profile issue) as well as the identification of risks to the sector in the UK or globally.
Working with stakeholders is key in Financial Services – for example, consulting industry representatives on how changes to regulation affect them, and analysing how the same changes might affect consumers in the general public. We also work with the Financial Conduct Authority on banking regulation, and with the Bank of England on financial stability.
We are responsible for ensuring the sustainability of the government’s finances, over both the medium term and the long term, to support economic stability and growth. This means making sure that the government has enough money to meet its spending commitments. Work in this area involves managing the UK’s national debt, overseeing the Bank of England’s management of the UK’s foreign currency reserves and gold, and financing by National Savings and Investments.
HM Treasury is not only concerned with the UK economy. We work to stimulate international initiatives that will enhance the UK’s prospects on the global stage.
Our Policy team advise Ministers on promoting and protecting the UK’s economic interests overseas. We support the Chancellor and senior officials in building relationships with key international partners and represent the UK in a range of international organisations such as the G20 and the IMF. We also analyse what is happening in the world economy, work on specific issues from sanctions and asset freezing to climate change, and oversee value for money on international development spending.
This team is responsible for providing economic analysis to underpin HM Treasury’s work. We provide the evidence base for policies and how they will impact the economy.