Finance (No. 2) Bill Report Stage: New Clause 11

Wednesday, 11 March 2026 · Division No. 446 · Commons

174Ayes

–

292Noes

Defeated

180 MPs did not vote

rightGovernment defeatedPro Farming Protections(Yes)Anti Fiscal Drag(Yes)Pro Inheritance Tax Relief(Yes)Pro Government Fiscal Control(No)

Voting Yes means

Support indexing agricultural inheritance tax thresholds to inflation and rising land values to protect family farmers from fiscal drag

Voting No means

Oppose mandatory indexation of agricultural inheritance tax thresholds, preferring to keep fixed thresholds as set in the legislation

What happened: On 11 March 2026, the House of Commons voted on New Clause 11 during the report stage of the Finance (No. 2) Bill -- the legislation enacting the government's budget measures. The clause, proposed by opposition parties, would have added new fiscal provisions to the Bill. It was defeated by 292 votes to 174, with the government's position prevailing comfortably.

Why it matters: The Finance (No. 2) Bill is the primary vehicle through which the government translates its budget into law, covering taxation, duties and related fiscal measures. Media coverage in the weeks surrounding this vote focused heavily on Air Passenger Duty, which was set to rise from April 2026, with travellers urged to book flights before 1 April to avoid higher charges. New Clause 11's defeat means the government's original budget proposals on such matters remain intact, without the additional fiscal measures the opposition sought to introduce.

The politics: The vote divided sharply along government-versus-opposition lines. All Labour and Labour/Co-operative MPs who voted did so against the clause (288 combined), while Conservatives (96), Liberal Democrats (53), the SNP (7), Reform UK (7), Plaid Cymru (4) and the DUP (2) all voted in favour -- an unusually broad opposition alliance. Notably, the Greens voted with the government against the clause. The vote sits within a period of sustained parliamentary pressure on Labour's fiscal agenda, including a series of government victories in March 2026 on National Insurance Contributions legislation, where the Commons repeatedly rejected Lords amendments by margins of around 115 votes.

How They Voted

Government position: No

Labour PartyWhipped No

0 Aye/257 No

Conservative and Unionist PartyWhipped Aye

96 Aye/0 No

Liberal DemocratsWhipped Aye

53 Aye/0 No

Labour and Co-operative PartyWhipped No

0 Aye/31 No

Independent

5 Aye/2 No

Scottish National PartyWhipped Aye

7 Aye/0 No

Reform UKWhipped Aye

7 Aye/0 No

Plaid CymruWhipped Aye

4 Aye/0 No

Green Party of England and WalesWhipped No

0 Aye/3 No

Democratic Unionist Party

2 Aye/0 No

Traditional Unionist Voice

1 Aye/0 No

Ulster Unionist Party

1 Aye/0 No

Your Party

0 Aye/1 No

What They Said in the Debate

James Wild

Conservative · North West Norfolk

Opposed

Opposes Bill's £66 billion tax rises, frozen thresholds affecting 1 million higher-rate taxpayers, inheritance tax on farms/businesses breaking PM pledge, and pension inheritance tax; argues measures stifle growth and break manifesto commitments.

Voted Aye

Sir Ashley Fox

Conservative · Bridgwater

Opposed

Challenges Government on £66 billion tax discrepancy versus manifesto promise of £7 billion; argues tax rises penalise hard-working people creating wealth while benefits spending rises to £406 billion.

Voted Aye

Mr Joshua Reynolds

Labour · Maidenhead

Questioning

Questions whether loan charge settlement excludes those who already settled, arguing retrospective application would simplify tax system and preserve future settlement credibility.

Voted Aye

Dan Tomlinson

Labour · Chipping Barnet

Supportive

Government minister defending amendments as technical clarifications and necessary measures to deliver economic stability, support public services, and control borrowing without raising main income tax rates or VAT.

Voted No

Chris Vince

Labour · Harlow

Supportive

Supports Government tax decisions as enabling NHS investment and reducing A&E waits; sees fiscal responsibility and public service investment as justifying measures.

Voted No

Ms Stella Creasy

Labour · Walthamstow

Supportive

Strongly supports new clause 4 cracking down on tax avoidance finfluencers; argues online tax misinformation causes real financial harm to constituents, particularly vulnerable low-income groups following false advice.

Voted No

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