Budget Resolution No. 4: Income tax (dividend rates)
371Ayes
166Noes
Carried · majority 205 · Government won111 did not vote
648 Members · Aye 371 · No 166 · DNV 111 · grey dots in centre are abstentions
Analysis
Commons
Commons
MPs voted on 2 December 2025 to approve Budget Resolution No. 4, which sets the rates of income tax applied to dividend income. The resolution passed by 371 votes to 166. Dividend income is money received by shareholders from company profits, and the rates set by this resolution determine how much tax individuals pay on such income. The vote advances the government's Budget proposals on dividend taxation, affecting investors and business owners who take income through dividends rather than salary. The rates confirmed by this resolution will shape the tax position of shareholders, including many small business owners who use dividend payments as a primary means of extracting income from their companies. The division followed strict party lines. Labour MPs, together with Labour and Co-operative MPs, provided all 351 government votes. The Conservatives (91 votes against), Liberal Democrats (59 against), Reform UK (8 against) and the Democratic Unionist Party (5 against) all voted no. Plaid Cymru, the Green Party and the two Your Party MPs voted with the government. Eight independents voted in favour and three against. There were no recorded cross-party rebellions among Labour or Conservative MPs.
Voting Aye meant
Support the government's proposed dividend income tax rates as set out in the Budget
Voting No meant
Oppose the government's proposed dividend income tax rates, likely objecting to the level at which rates are set
Each row is one party. The stacked bar gives the within-party split of Aye / No / Absent; the columns on the right give the raw counts. The whip column shows the published party position — “Free vote” means the whip was formally removed for this division.
Party
Whip
Aye / No / Abs
Aye
No
Abs
Labour Party
Whipped Aye
311
0
50
Conservative and Unionist Party
Whipped No
0
91
25
Liberal Democrats
Whipped No
0
58
13
Labour and Co-operative Party
Whipped Aye
40
0
2
Independent
—
8
4
1
Scottish National Party
—
0
0
9
Reform UK
Whipped No
0
8
0
Sinn Féin
—
0
0
7
Democratic Unionist Party
Whipped No
0
5
0
Green Party of England and Wales
Whipped Aye
3
0
1
Plaid Cymru
Whipped Aye
4
0
0
Social Democratic and Labour Party
—
2
0
0
Your Party
—
2
0
0
Alliance Party of Northern Ireland
—
0
0
1
Restore Britain
—
0
0
1
Speaker
—
0
0
1
Traditional Unionist Voice
—
0
1
0
Ulster Unionist Party
—
0
1
0
Source · Hansard · UK Parliament Votes API · whip status from announced positions; “free vote” indicates the whip was formally removed
Budget is morally necessary investment to lift children from poverty, rebuild NHS as public service, and tackle public health crisis; lifting two-child cap is paid for by tax avoidance crackdowns and gambling tax.Labour · Voted aye · Read full speech (4,668 words) →
Budget is a tax grab on working people without real reform plan; NHS waiting lists falling far too slowly; government failed to resolve strikes and has no credible social care strategy.Conservative · Voted no · Read full speech (2,779 words) →
Budget treads water on NHS; unclear how medicine price increases and reorganisation costs will be paid; calls for EU customs union and better GP access rather than tax rises.Liberal Democrat · Voted no · Read full speech (2,898 words) →
Budget is progressive and fair; lifting two-child cap will reduce child poverty by 500,000; tax reforms on wealthy and investment in employment support are sound policy.Labour · Voted aye · Read full speech (917 words) →
NHS frontline staff at St Thomas' hospital deserve recognition for managing through strikes; government must prevent further strike action.Labour · Voted aye · Read full speech (89 words) →
Budget lacks growth measures and imposes stealth taxes on working people; freeze on income tax thresholds and EV tax burden rural constituencies disproportionately.Independent · Voted no · Read full speech (714 words) →
Strongly defends two-child cap removal as moral imperative; criticizes Opposition for opposing child poverty relief despite UK being wealthy nation.Labour · Voted aye · Read full speech (543 words) →
Sources
Division dataUK Parliament Votes API
DebateHansard · Commons
Stance analysisAI analysis · Claude 4.x
LicenceOpen Parliament Licence v3.0