Budget Resolution No. 5: Income tax (savings rate for future years)

Tuesday, 2 December 2025 · Division No. 371 · Commons

369Ayes

–

166Noes

Passed

117 MPs did not vote

centreGovernment wonPro Budget Measures(Yes)Anti Budget Measures(No)Pro Savings Taxation Policy(Yes)Fiscal Responsibility(Yes)

Voting Yes means

Support approving the government's proposed savings income tax rate as set out in the Budget

Voting No means

Oppose the government's proposed savings income tax rate, either as too high or as part of broader opposition to the Budget

What happened: On 2 December 2025, the House of Commons voted on Budget Resolution No. 5, which sets income tax rates on savings income for future years. The resolution passed by 369 votes to 166, with the government's position carrying comfortably.

Why it matters: Budget resolutions are the formal mechanism by which Parliament approves the tax measures announced in the Chancellor's Budget statement, giving them legal effect. This particular resolution locks in the income tax rates that apply to savings income, such as interest earned on bank accounts and bonds, for future tax years. It forms part of the government's broader fiscal framework and determines how much tax savers pay on returns from their savings.

The politics: The vote divided sharply along party lines. All 309 Labour MPs and 39 Labour and Co-operative members voted in favour, while Conservatives (89), Liberal Democrats (60), Reform UK (8), the Democratic Unionist Party (5), and Traditional Unionist Voice (1) all voted against. Plaid Cymru (4) and the Green Party (3) backed the government, and a majority of independents did the same. There were no rebels on the Labour benches. The result reflects the government's substantial Commons majority and mirrors the broader pattern of opposition to the Budget's tax measures seen in related votes on employer National Insurance contributions and industrial financial assistance in the weeks that followed.