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Finance (No. 2) Bill

A Bill to make provision in connection with finance.

Originating House

House of Commons

Sponsor

Rachel ReevesLabour (Co-op)

Parliament last updated

13 March 2026

In Plain English

AI-generatedMay be outdated

May contain errors — check source documents for definitive information.

The Finance (No. 2) Bill is a broad package of government finance and tax measures, including anti-avoidance reforms, new HMRC powers and penalties, rules affecting advisers and promoters, and various excise and tax changes. It has been heavily debated in Parliament, with Labour-led amendments aimed at tightening definitions and adding safeguards, while opponents sought to narrow or slow reforms. The bill has progressed through the Commons with changes and is now before the Lords for final consideration at its 3rd reading.

Key Points

  • Strengthened anti-avoidance regime and enforcement powers, including proposed new sanctions on advisers and the ability to publish penalties, designed to curb aggressive tax planning and promoter activity.
  • Expanded liability and information-sharing rules, notably powers for HMRC to determine PAYE and measures extending joint/connected liability for promoters and introducers, subject to specific safeguards being debated in Committee.
  • Focus on advisers and promoters: significant discussion around registering tax advisers, widening sanctionable-conduct rules, and balancing enforcement with protections such as reasonable-care defences, representation rights, and publication safeguards to avoid chilling legitimate professional advice.
  • Policy tensions around tax/tobacco regimes and implementation: debates over vaping duties versus a proposed punitive tobacco duty increase, plus calls for robust enforcement against illegal tobacco and for inflation-linked uprating of certain charges, where applicable.
  • Parliamentary evolution: a large set of amendments were proposed and many Labour-led amendments were agreed (e.g., clarifications to company definitions and schedule order), while several other amendments were defeated or not adopted, reflecting ongoing policy negotiation between parties.

Progress

The Bill has completed its Commons passage with amendments and is in the Lords for final examination. The Lords have already conducted scrutiny and readings, with further possible changes; the measure is moving toward Royal Assent unless amended further in the Lords.

Voting

In the Commons, the bill advanced to its 3rd reading with strong cross-party support for the main framework, though many proposed amendments were defeated or modified. Labour‑linked amendments sought to tighten definitions and extend safeguards, while Conservative amendments attempted to narrow scope or alter timing; overall, the main package progressed but with partisan clashes over details.

Who is affected?

Taxpayers and workersTax advisers and accountantsTax promoters and their intermediariesSmall businesses and retailers affected by excise and tax changesTaxi and private hire vehicle drivers and operatorsInternational investors and cross-border tradersPublic bodies involved in tax enforcement and compliance

Generated 21 February 2026

Bill Stages

1st readingCommons

2 Dec 2025

2nd readingCommons

16 Dec 2025

Programme motionCommons

16 Dec 2025

Committee of the whole HouseCommons

12 Jan 2026, 13 Jan 2026

Committee stageCommons

27 Jan 2026, 29 Jan 2026, 3 Feb 2026

Ways and Means resolutionCommons

11 Mar 2026

Ways and Means resolutionCommons

11 Mar 2026

Report stageCommons

11 Mar 2026

3rd readingCommons

11 Mar 2026

1st readingLords

12 Mar 2026

2nd readingLords

17 Mar 2026

Committee negativedLords

17 Mar 2026

Report stageLords

17 Mar 2026

3rd readingLords

17 Mar 2026, 17 Mar 2026

Royal AssentUnassigned

18 Mar 2026

Royal Assent

Amendments (283)

243 no decision21 agreed9 defeated8 not called2 not selected

Showing agreed, defeated, and withdrawn amendments.

How Parties Are Voting

Based on 53 recorded votes • Sorted by % Aye

Plaid CymruGenerally For
80 / 11
Scottish National PartyGenerally For
191 / 54
Liberal DemocratGenerally For
677 / 240
Ulster Unionist PartyGenerally For
8 / 3
Restore BritainGenerally For
5 / 2
Traditional Unionist VoiceGenerally For
7 / 3
Social Democratic & Labour PartyGenerally For
20 / 9
Your PartyMixed
22 / 12
IndependentGenerally For
119 / 65
Democratic Unionist PartyMixed
73 / 61
Labour (Co-op)Mixed
3975 / 3379
AllianceMixed
2 / 2
Green PartyMixed
16 / 17
ConservativeMixed
1379 / 2287
Reform UKMixed
67 / 116
Sinn FéinMixed
0 / 0
SpeakerMixed
0 / 0

Updates & Documents

News (1)

Finance (No. 2) Bill

18 Dec 2025

Following agreement by both Houses on the text of the bill it received Royal Assent on 18 March. The bill is now an Act of Parliament (law).

Documents (115)

HL Bill 177 (as brought from the Commons)
BillLords
12 Mar 2026
Speaker’s provisional grouping and selection of Amendments - 11 March 2026
Selection of amendments: CommonsCommons
11 Mar 2026
Report Stage Amendments as at 11 March 2026 - large print
Amendment PaperCommons
11 Mar 2026
Speaker’s provisional grouping and selection of Amendments - large print - 11 March 2026
Selection of amendments: CommonsCommons
11 Mar 2026
Report Stage Proceedings as at 11 March 2026
Bill proceedings: CommonsCommons
11 Mar 2026
Report Stage Amendments as at 11 March 2026
Amendment PaperCommons
11 Mar 2026
Notices of Amendments as at 10 March 2026 - large print
Amendment PaperCommons
10 Mar 2026
Notices of Amendments as at 10 March 2026
Amendment PaperCommons
10 Mar 2026
Notices of Amendments as at 9 March 2026
Amendment PaperCommons
9 Mar 2026
Notices of Amendments as at 9 March 2026 - large print
Amendment PaperCommons
9 Mar 2026

Parliamentary Votes (53)