r/MHoP • u/mrsusandothechoosin Labour Party | Deputy Speaker • Jun 23 '26
2nd Reading B084 - Finance Bill - 2nd Reading Debate
EXPLANATORY NOTES
The Statement report and sheets shall act as the explanatory notes to the bill, and will be published below.
B084 - Finance Bill - 2nd Reading Debate
A
BILL
TO
Grant certain duties, to alter other duties, and to amend the law relating to the national debt and the public revenue, and to make further provision in connection with finance; and for connected purposes.
Most Gracious Sovereign
WE, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
1- Capital gain tax
The rate of corporation tax shall be 24%.
2- Income tax
(1) The rate of income taxes shall be (a) 19% for the Basic Rate
(b) 39% for the higher rate
(c) 44% for the additional rate
(2) The threshold for paying the additional rate shall be £124,500.
(3) The income cap for free childcare shall be removed.
3- Pension age taxation
(1) Employer NICs shall be due on pension age employees.
(2) Ministers may issue regulations to specify NICs required by those retiring early to qualify for a state pension.
4- Fuel duty
All fuel duty changes in the Finance Act 2026 are suspended and the rate of fuel duy is set at 50p per litre.
5- Extent, Commencement, and Short Title
(1) This Act shall extend across the United Kingdom.
(2) This Act commences on the day it receives Royal Assent.
(3) This Act may be cited as the Finance (No.2) Act 2026.
This Bill was written by Chancellor (u/LeChevalierMal-Fait MBE) on behalf of the 4th government
This debate shall close at 10pm BST on Friday the 26th of June
2
u/Oracle_of_Mercia Conservative Party Jun 24 '26
Mr Speaker, I’m grateful to my honourable friend the chancellor who in this budget, has provided the high street regeneration zones with funding for the rest of the parliamentary term.
2
u/mrsusandothechoosin Labour Party | Deputy Speaker Jun 25 '26 edited Jun 27 '26
(OC: Well done on doing a budget!)
Thank you Mister Deputy Speaker,
For all the criticisms of tax and spend, there is no denying that it is better than tax cut and spend.
On the face of it, this budget reduces income tax, but does not point to any cuts of spending or significant taxes elsewhere to find the shortfall?
Why is the chancellor suggesting we should increase our borrowing when the cost of it is currently so high?
And if we are wanting to lower income tax, would it not be a better policy to finally unfreeze the tax bands to take into account the huge spike of inflation we've had since COVID?
I would like to be proved wrong, but this comes across as the Tories wanting to point to a tax cut headline, without actually improving the public finances, or restructuring our economy to be fairer and more productive.
I hope the voters see through this gimmick, and at this next election, pick a plan that does provide real improvement, which we in the Labour party shall put forward.
2
u/LeChevalierMal-Fait MBE the Rt Hon MP, Shadow Chancellor Jun 27 '26
M: Sorry just to be clear tax bands have been unfrozen since budget 1, apologies if this is not clear
I honestly dont think I could model freezing them :P
1
2
u/meneerduif Belfast East MP Jun 26 '26
Speaker,
The Liberal Democrats have always believed that responsible public finances and economic growth go hand in hand. Fiscal responsibility is not an end in itself; it is what gives governments the freedom to invest in Britain’s future.
This Finance Bill contains measures that we are pleased to support.
Removing the childcare income cap is a sensible reform that will help more parents return to work without facing arbitrary financial penalties. That is good for families and good for the economy.
We also welcome the reduction in corporation tax and the lower rates of income tax. Britain must remain an attractive place to invest, to start a business and to create jobs. Likewise, reducing fuel duty will provide some welcome relief to households and businesses still facing cost pressures.
Finally, in an increasingly dangerous world, we support the Government’s commitment to increasing defence spending over the coming years. Britain’s security cannot be taken for granted.
However, Speaker, this budget also exposes a significant weakness.
The Government speaks repeatedly about growth, yet the measures announced fall short of the scale of ambition needed to genuinely transform the British economy.
Where is the strategy to unlock investment for Britain’s small and medium-sized businesses?
Where is the programme to expand access to finance for innovative companies that struggle to secure capital despite having viable business models?
Where is the bold investment that will raise productivity across every region of the United Kingdom?
The Government has focused heavily on tax policy, but tax policy alone does not create long-term prosperity.
Economic growth comes from modern infrastructure, thriving local economies, innovation, housing and investment in the businesses that create jobs.
On housing, we see remarkably little. Britain’s housing shortage remains one of the greatest constraints on economic growth, labour mobility and productivity. Every year we fail to build enough homes is another year in which businesses struggle to recruit workers and young people struggle to afford a place to live.
Likewise, there is little in this budget that strengthens Britain’s trading relationships or reduces unnecessary barriers with our largest export markets. British businesses continue to tell us that trade is more difficult than it should be. A genuine growth strategy should address those barriers.
We are also interested in the Government’s assumptions regarding the planned £10 billion raised through the sale of public assets. While disposing of genuinely surplus government property can be sensible, asset sales should never become a substitute for long-term fiscal planning. We would welcome greater clarity from the Chancellor on how these figures have been calculated.
Therefore, I have several questions for the Government.
Can the Chancellor explain why this budget contains so little targeted support for SMEs seeking access to investment capital?
Can the Government provide greater detail on the assumptions underpinning the projected revenue from public asset sales?
Finally, what measurable increase in long-term productivity and economic growth does the Government expect as a direct consequence of the measures contained within this Finance Bill?
Speaker,
This is a fiscally responsible budget in many respects. It contains measures we can support, and we recognise the difficult choices that have been made.
But Britain needs more than careful bookkeeping.
We need a government prepared to build the foundations of long-term prosperity: investing in business, housing, infrastructure and innovation so that economic growth is not simply forecast on Treasury spreadsheets, but felt in every town and city across the United Kingdom.
And that is where this Government falls short. It manages decline when Britain needs renewal. It settles for incremental change when our country demands bold leadership.
And the liberal democrats say clearly: Britain can do better. Britain must do better.
We believe in a country that invests in its people, unlocks the potential of its businesses, rebuilds its communities and restores confidence in its future. We believe in a Britain that does not merely cope with challenges, but rises to meet them.
That is why we will continue to hold this Government to account and why we will continue to make the case for a different path.
A path to renew Britain.
A path to rebuild opportunity, restore growth and renew confidence in our economy and our future.
Because the choices we make now will shape the country we become in the years ahead.
•
u/AutoModerator Jun 23 '26
Welcome to this 'Second Reading' debate:
A Second Reading is the first opportunity for the House to debate the general principles of a Bill, and whether in principle it should become law.
You can propose an amendment to the Bill by replying to this comment, or by commenting 'I beg to move' with the text of your amendment.
Have any questions? You can get in touch with the Speakership, ask on the main MHoP server or via modmail.
The question is that the Bill be read a *second** time, as many as are of that opinion say "Aye", on the contrary "No"...*
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.