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

Parliament approved Budget Resolution No. 5 on 2 December 2025, setting the savings rate of income tax for future years. The vote passed by 369 ayes to 166 noes. Budget resolutions are the formal mechanism by which Parliament gives legal effect to tax measures announced in the Chancellor's Budget statement. The savings rate of income tax applies to savings income such as interest earned on bank and building society accounts. By passing this resolution, Parliament authorises the government to apply this rate in future tax years. The resolution does not take final legislative effect until incorporated into a Finance Bill, but it provides the legal authority for the rate to operate in the interim period after a Budget statement. Labour and Labour and Co-operative MPs voted unanimously in favour, providing the core of the 369 ayes. The Conservatives, Liberal Democrats, Reform UK, and the Democratic Unionist Party all voted against, together accounting for the bulk of the 166 noes. Plaid Cymru, the Greens, and several independents supported the resolution. No Conservative or Liberal Democrat MP voted aye. The vote reflects the standard Budget approval process, in which the opposition parties use resolutions as an opportunity to register opposition to the government's fiscal package as a whole rather than to the specific tax rate in isolation.