Tax Reliefs: Zero-based Review

Treasury – in the House of Commons at on 9 September 2025.

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Photo of Bobby Dean Bobby Dean Liberal Democrat, Carshalton and Wallington

If she will make an assessment of the potential merits of undertaking a zero-based review of all tax reliefs before the autumn Budget 2025.

Photo of Dan Tomlinson Dan Tomlinson The Exchequer Secretary

Tax reliefs are an important feature of the UK tax system, and His Majesty’s Revenue and Customs has invested significant resources in improving understanding of their cost and effectiveness. Since 2019, it has produced costings for 350 reliefs, including detailed analysis of the 38 largest non-structural reliefs, which cost more than £500 million a year.

Photo of Bobby Dean Bobby Dean Liberal Democrat, Carshalton and Wallington

The Minister detailed that about 350 reliefs have been assessed, but my understanding is that more than 1,200 tax reliefs are on the books, amounting to hundreds of billions of foregone revenue for the Treasury. Given that the Treasury examined the spending of all Departments in detail over the summer, I wondered whether it was considering applying the same level of scrutiny to itself.

Photo of Dan Tomlinson Dan Tomlinson The Exchequer Secretary

It is worth noting that some 800 of the 1,200 reliefs the hon. Member mentions ensure that the tax system operates as intended by defining the scope of tax correctly and that it operates fairly and simply. I am sorry to disappoint the hon. Member, but I will not be able to comment specifically on any changes that we may or may not make to tax reliefs—any decisions will, of course, be announced at the Budget, which is not today.

Minister

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