Does NTP daemon set the host timezone?

You only need to set the time zone once:

tzselect

or

dpkg-reconfigure tzdata

NTP does not handle time zones. All time data handled by NTP is in UTC; your local time zone setting determines the offset from there.

If your timezone is correctly set then you need to do nothing. To check your timezone have a look at the contents of the /etc/timezone file.

cat /etc/timezone

Europe/london

Which is correct for my system.

If your timezone is incorrect then use

sudo dpkg-reconfigure tzdata

to select and set your timezone. Once that is done you should be good till you move the system to another timezone (if ever).

The NTP Daemon does not set the timezone.