Finance (No. 2) Bill Committee: New Clause 26

What happened: Parliament voted on 13 January 2026 on New Clause 26, a proposed addition to the Finance (No. 2) Bill during its Committee stage. The clause, backed by opposition parties, would have altered the government's Finance Bill. The motion was defeated by 334 votes to 172, with the government's Labour majority holding firm against the amendment.

Why it matters: The Finance (No. 2) Bill gives legal effect to the measures announced in the October 2024 autumn Budget. New Clause 26 was one of several opposition attempts to modify the Bill as it passed through its detailed Committee scrutiny. Its defeat means the government's original fiscal package remains intact, including controversial measures such as applying inheritance tax to unspent pension assets from April 2027, a significant increase in remote gambling duties, and changes to employer National Insurance contributions. These reforms collectively represent what the government describes as a course correction for the public finances, and what critics argue is a substantial and unheralded tax burden on individuals, businesses and particular industries.

The politics: The vote divided almost entirely along government-versus-opposition lines. All 329 Labour and Labour and Co-operative Party members who voted did so against the clause, while Conservatives, Liberal Democrats, the SNP, the DUP, Plaid Cymru, Reform UK and the Ulster Unionist Party all voted in favour. Five independents voted Aye and four voted No. There were no notable Labour rebels. This pattern reflects the broader parliamentary battle over the Budget, in which a large but disparate opposition coalition has consistently failed to overcome the government's working majority, as also seen in related votes on the National Insurance Contributions (Employer Pensions Contributions) Bill in March 2026, where the government similarly defeated Lords amendments by margins of around 115 votes.