Finance (No. 2) Bill: Second Reading
341Ayes
195Noes
Carried · majority 146 · Government won115 did not vote
651 Members · Aye 341 · No 195 · DNV 115 · grey dots in centre are abstentions
Analysis
Commons
Commons
Parliament voted on 16 December 2025 to give the Finance (No. 2) Bill its Second Reading, passing it by 341 votes to 195. The Bill enacts the Chancellor's autumn 2025 Budget, covering measures including the removal of the two-child benefit limit, increases to the national living wage, reforms to agricultural and business property relief for inheritance tax, and a rise in employer national insurance contributions. The vote means the Budget's package advances through Parliament. Removing the two-child benefit limit is projected by the government to lift 550,000 children out of relative poverty. The national living wage rises to £12.71 an hour from April 2026. The inheritance tax changes cap full relief on agricultural and business property, with a 50% discount on the inheritance tax rate applying above a combined allowance that the government says can be transferred between spouses. The employer national insurance rise, which critics have labelled a jobs tax, proceeds alongside these measures. Every Labour and Labour Co-operative MP who voted supported the Bill, with no dissent from the governing benches recorded. All Conservatives, Liberal Democrats, Reform UK, SNP, DUP, and Plaid Cymru MPs who voted opposed it, along with the Alliance Party of Northern Ireland's MP. Four independents voted aye and three voted no. The Bill subsequently passed its Third Reading on 11 March 2026 by 292 votes to 161, suggesting the government's majority held through the later stages despite sustained opposition to the national insurance and inheritance tax provisions.
Voting Aye meant
Support the Labour government's Budget package, including higher public spending on health and poverty reduction, increases to the national living wage, and inheritance tax reforms targeting wealthier estates — accepting the national insurance rise as a necessary trade-off.
Voting No meant
Oppose the Budget's tax and spending package, particularly the increase in employer national insurance ('jobs tax') which critics argue raises unemployment, the inheritance tax changes affecting family farms, and the overall fiscal approach.
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
299
0
62
Conservative and Unionist Party
Whipped No
0
103
13
Liberal Democrats
Whipped No
0
65
6
Labour and Co-operative Party
Whipped Aye
36
0
6
Independent
—
4
4
5
Scottish National Party
Whipped No
0
6
3
Reform UK
Whipped No
0
7
1
Sinn Féin
—
0
0
7
Democratic Unionist Party
Whipped No
0
4
1
Green Party of England and Wales
—
0
0
4
Plaid Cymru
Whipped No
0
3
1
Social Democratic and Labour Party
—
0
0
2
Your Party
—
0
0
2
Alliance Party of Northern Ireland
—
0
1
0
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
Defends the Bill as delivering fair choices on cost of living, NHS, poverty reduction, and growth; argues agricultural and business property relief reforms are proportionate with £1m allowance and 20% rate.Labour · Voted aye · Read full speech (4,022 words) →
Opposes the Bill as economically reckless, redistributing wealth at the expense of growth incentives; argues inheritance tax changes will devastate family farms and businesses, break PM's promises, and damage investment.Conservative · Voted no · Read full speech (3,204 words) →
Criticizes the Bill as short-term Treasury tax grabs with no vision; opposes APR/BPR changes as failing to tackle real loopholes, and condemns business rates rises and hospitality tax increases.Liberal Democrat · Voted no · Read full speech (2,043 words) →
Argues the farming and business inheritance tax changes are arithmetically impossible for businesses with low profit margins; warns of double taxation and job losses.Conservative · Voted no · Read full speech (2,341 words) →
Supports the Bill's overall direction but will not support APR/BPR proposals; calls for a U-turn on agricultural inheritance tax despite party pressure.Labour · Voted aye · Read full speech (426 words) →
Supports the Bill as pro-growth and pro-enterprise; praises enterprise incentive expansions, venture capital trust reforms, and listing relief as enabling UK companies to scale.Labour · Voted aye · Read full speech (974 words) →
Wants the government to succeed but deeply concerned APR removal has killed rural investment confidence; calls APR changes a threat to growth in rural and island communities.Scottish National Party · Voted no · Read full speech (1,427 words) →
Supports the Bill as providing fair balance between taxes and services; argues investment in infrastructure and skills will drive economic growth for small businesses.Labour · Voted aye · Read full speech (812 words) →
Sources
Division dataUK Parliament Votes API
DebateHansard · Commons
Stance analysisAI analysis · Claude 4.x
LicenceOpen Parliament Licence v3.0