Lucy Rigby MP: speeches

Speeches

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  I am grateful to the hon. Member for Wyre Forest for his comments and for highlighting the fact that we have kept our manifesto commitment on tax. This is part of that: we are capping corporation tax at 25% in line with our corporate tax road map. Question put and agreed to . Clause 11 accordingly ordered to stand part of the Bill . Clause 12 ordered to stand part of the Bill. Clause 13 Enterprise management incentives: thresholds and period for exercise

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clause 28 will reduce the main rate writing-down allowance for corporation tax and income tax, and clause 29 introduces a new first-year allowance available for expenditure on plant and machinery. As I am sure all hon. Members are aware, capital allowances allow businesses to write off the costs of capital assets, such as plant or machinery, against their taxable income. The UK continues to offer one of the most generous capital allowances systems globally and ranks top among OECD countries for plant and machinery capital allowances. Clause 28 will reduce the main rate writing-down allowance from 18% to 14%, starting on 1 April 2026 for corporation tax and 6 April 2026 for income tax. That allows the Government to fund a new first-year allowance while also fairly raising revenue to protect the public finances. Clause 29 will introduce the new 40% first-year allowance, which will support future investment. The new allowance is available for expenditure on plant and machinery, including assets bought for leasing and assets bought by unincorporated businesses, from 1 January 2026. The changes made by clauses 28 and 29 will raise approximately £1.5 billion per year by the end of the scorecard. The changes are UK-wide and will impact businesses with pools of historic main rate expenditure, which predate the introduction of the super-deduction or full expensing regimes for companies, as well as historic expenditure or future main rate expenditure that does not qualify for first-year allowances, or where first-year allowances were not claimed. We have heard the calls to expand full expensing to more assets and businesses. Although the fiscal climate limits what we can do now, the new first-year allowance moves us closer to that goal in a responsible way. New clause 2 seeks to mandate reporting the impacts of clause 28 to the House. The Government have published documents much loved by the shadow Minister, the hon. Member for North West Norfolk—tax information and impact notes—setting out the impact of the reduction to main rate writing-down allowances, alongside the introduction of the new 40% first-year allowance. I therefore reject new clause 2 and commend clauses 28 and 29 to the Committee.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clause 31 will make changes to clarify the tax treatment of payments made by companies in return for receiving expenditure credits. The changes made by the clause will set out a treatment for companies to follow. Payments made in return for credit must be ignored for corporation tax purposes, both by the surrendering company and by the recipient company. Clauses 32 and 33 will introduce technical amendments to the legislation on video games expenditure credit and audiovisual expenditure credit. The changes made by clause 32 will add a new transitional rule to modify the video games expenditure credit calculation so that it accounts for both European and UK expenditure. The changes made by clause 33 will prevent incorrect amounts from having an impact on the intended generosity of special credit. They will do so by preventing some incorrect amounts from occurring and by setting out how to resolve others when they arise. Noting that clause 32 will close a loophole, I commend clauses 31 to 33 to the Committee.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  I thank the shadow Minister for his question. The Government are committed to supporting R&D investment across the UK through R&D tax reliefs; they of course play a vital role in supporting the mission to boost economic growth, which he will know is this Government’s No. 1 priority. The legislation clarifies that the rules are the same for all R&D expenditure credit companies across the UK. The overseas restriction was introduced in regulations in 2024 before being included in the Finance Act 2025. It was always intended to apply to R&D expenditure credit claimants across the UK, so the change is purely to clarify the Finance Act 2025 to put that position beyond all doubt. Question put and agreed to. Clause 34 accordingly ordered to stand part of the Bill. Clause 35 Restriction of relief on disposals to employee-ownership trusts Question proposed, That the clause stand part of the Bill.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clauses 14 and 15 double the maximum amount that a company can raise through the enterprise investment scheme and venture capital trusts scheme, as well as the gross assets limit for companies using the scheme. The VCT income tax relief will also be reduced from 30% to 20%. The changes made by clause 14 will mean that, from April 2026, the EIS annual company investment limits will increase to £10 million, or £20 million for knowledge-intensive companies. The lifetime company investment limits will increase to £24 million, or £40 million for knowledge-intensive companies. The gross assets test will increase to £30 million before share issue, and £35 million after. Likewise, clause 15 will mean that from April 2026, the VCT company investment limits and gross assets test will increase to the same levels. Alongside that, as I said, the VCT up front income tax relief will decrease from 30% to 20% from April 2026. Government amendments 3 and 4 fix wording in clause 15 so that the annual and lifetime investment limits consistently apply to “the relevant company”, removing any ambiguity in how the VCT limits should be interpreted.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  On new clause 3, I think I have been as full as I can. The Government annually review the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. We therefore do not need the review that is suggested in new clause 3. On the broader points made by the shadow Minister, the hon. Member for North West Norfolk, we are, as I say, fully committed to supporting our automotive sector. On the suggestion that we might look further ahead, the Chancellor makes decisions on tax policy at fiscal events in the context of the public finances. My hon. Friend the Member for Banbury is right that support for infrastructure in this area is critical; indeed, that is the wider policy of the Government. On the suggestion from the hon. Member for Maidenhead that we might go beyond one year, we need to balance support for the industry with the impact on the public finances. In our debate on clause 30, we have had “stop-start”, “accelerate”, “full throttle” and “red light”. I now encourage the Committee to greenlight the clause. Question put and agreed to. Clause 30 accordingly ordered to stand part of the Bill.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clause 30 will extend the 100% first-year allowance for qualifying expenditure on zero emission cars and plant or machinery for electric vehicle charge points by a further year to April 2027. More specifically, it will extend the availability of these capital allowances to 31 March 2027 for CT purposes and 5 April 2027 for income tax purposes, ensuring that investments in zero emission cars and charge point infrastructure continue to receive the most generous capital allowance treatment. New clause 3 would require the Chancellor to review and report on the impact of the expiry in 2027 of the 100% first-year allowances made under clause 30, including the case for ongoing capital allowance support for zero emission cars and electric vehicle charging points. Alongside the 2025 Budget, in which the extension was announced, a policy costings document and a TIIN were published that set out the expected economic, business and other impacts of the changes, including impacts on incentivising businesses to purchase zero emission vehicles. Those documents are of course available online. The Government annually review the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. For that reason, new clause 3 is unnecessary. I commend clause 30 to the Committee, and ask that new clause 3 be rejected.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clauses 20 to 23 relate to other employment income. Clause 20 will simplify the rules on common workplace health and equipment costs, reducing administrative burdens for employers and giving greater clarity to the tax treatment of these costs. It will exempt reimbursements for accommodations, supplies or services used in performing employment duties, such as homeworking equipment; it will extend the existing exemptions for eye tests and corrective appliances to cover reimbursements; and it will introduce a new exemption for both the direct provision and the reimbursement of flu vaccinations. Uptake will depend on employer practice, but these changes will make the rules simpler and fairer for those affected. The Exchequer impact is negligible, but this change will allow employers to support staff without having to handle the sourcing and provision of minor items themselves. This will reduce time and resource costs. Clause 21 relates to homeworking expenses. It will remove the process by which employees can claim an income tax deduction from HMRC if they have incurred additional household costs when required to work from home. The changes introduced by the clause aim to address concerns around non-compliance and to ensure fairness across the tax system. Clause 22 will introduce changes that confirm the income tax treatment of payments made by zero-hour or similar limited-hour workers for a cancelled, moved or curtailed shift. This measure will put the tax treatment of such a shift beyond doubt. These tax changes will have an impact only on a small subset of workers, as the vast majority of such payments are taxable under existing legislation. The measure confirms that payments received in the event that a shift is altered at short notice are taxable in all scenarios, including in relation to agency workers and workers employed under umbrella companies. Clause 23 puts beyond doubt the answer to whether earnings for duties not performed should be treated as UK earnings or overseas earnings for non-UK residents. The clause will establish a general principle to determine the tax treatment of earnings that relate to duties that have not been performed. It will also make a consequential amendment to foreign employment relief, commonly known as overseas workday relief, to ensure that this clarification also applies to UK residents who claim it. I commend clauses 20 to 23 to the Committee.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  The shadow Minister referred to the new 40% first-year allowance, which is bringing forward relief for the leasing sector and unincorporated businesses, which have historically been carved out of the first-year allowance. In doing so, it allows for immediate relief on a significant amount of their investment from their corporation tax or income tax bill in the year in which they make that investment. As the Chancellor has repeatedly made clear, the fiscal environment is challenging. We cannot make unfunded commitments on tax. The shadow Minister referred earlier to being an adviser to the previous Government, which is not, I suspect, to suggest that he had a role in creating the fiscal environment that we unfortunately inherited from the previous Government. We have heard the calls to expand full expensing to more assets and businesses. When the fiscal climate allows us to do so, we will look into that.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  The purpose of the review, as I think is well known, was to bring the matter to a close for those who had not yet settled and paid their loan charge liability to HMRC. That by its very nature meant focusing on open cases and outstanding liabilities. The Liberal Democrat spokesman, the hon. Member for Maidenhead, referred to something like this happening again. I think we would all agree that we hope it does not. However, we would probably also agree that it is crucial that any resolution to this issue is fair to the wider tax-paying population that has never avoided tax. The Government believe that this settlement opportunity is the most pragmatic solution to draw a line under the issue for as many individuals with outstanding liabilities as possible. The settlement opportunity being provided is substantially more generous than any opportunity HMRC has previously offered and will substantially reduce the outstanding liabilities of people who have yet to settle with HMRC, particularly those with the lowest liabilities. Most individuals, as I said, could see reductions of at least 50% in their outstanding loan charge liabilities. We estimate that 30% of individuals could have their liabilities written off entirely.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  On the points made by the shadow Minister, the hon. Member for Wyre Forest, we have listened very carefully indeed to the sector’s concerns and have responded. That is exactly why we are delaying the proposed changes to employee car ownership schemes until 2030. That is the reasoning behind the delay. The Government are firmly committed to our modern industrial strategy, and specifically to the automotive sector. That is why in the past year we have committed £2.5 billion to automotive investment and research and development, increased flexibilities in the ZEV mandate, funded the roll-out of more charge points and announced plans to cut electricity costs for energy-intensive manufacturers. Various points have been made about the tax incentives, but underpinning all of them is our commitment to support the automotive industry in a challenging fiscal environment. We will publish in due course the guidance that the hon. Member for Maidenhead requests. Question put and agreed to. Clause 17 accordingly ordered to stand part of the Bill. Clauses 18 and 19 ordered to stand part of the Bill. Clause 20 Employment income: miscellaneous exemptions Question proposed, That the clause stand part of the Bill.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clause 16 will enable the existing enterprise management incentives scheme and company share option plan contracts agreed before 6 April 2028 to be amended to include a sale on the private intermittent securities and capital exchange system—known by its much more catchy acronym of PISCES—as an exercisable event, without losing the tax advantages. The legislation will have retrospective effect from 15 May 2025. In the interim, His Majesty’s Revenue and Customs will be able to use its collection and management powers to not collect tax on exercise. That means that this change will benefit PISCES trading events that happen before the Finance Bill receives Royal Assent. The change will therefore support more employees of growing UK companies to access the tax advantages of EMIs, and ensures that the tax system keeps pace with innovation in the wider economy. It also, of course, supports the launch of PISCES, which will provide a key stepping stone for public markets, supporting our world-leading capital markets. I commend clause 16 to the Committee.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clauses 17 and 18 will bring employee car ownership schemes into the benefit-in-kind regime from 2030, with transitional arrangements until 2032. Clause 19 will ensure that the introduction of new emissions standards does not lead to a sharp increase in benefit-in-kind tax for plug-in hybrid electric vehicles. On clauses 17 and 18, the costing, published alongside the Budget, accounts for a behavioural response whereby a significant number of taxpayers switch towards alternative vehicles or move away from using company cars altogether. That has been updated since the 2024 autumn Budget, taking into account further evidence on the impacts of the measure provided by the sector. Private use of a company car is a valuable benefit, and it is right that the appropriate tax be paid on it. This measure will ensure fairness to other taxpayers, reduce distortions in the tax system and reinforce the emissions-based company car tax regime, which incentivises the take-up of zero emission vehicles. To support the automotive industry and provide employers with more time to adjust to the changes, the Government have delayed implementation of the measure to 6 April 2030 and have introduced transitional rules. On clause 19, new emissions standards being introduced in the UK reflect the higher real-world emissions of PHEVs. It is important that a car’s official emissions figures reflect real-world emissions, but that can lead to tax increases where tax is linked to emissions levels. The Government recognise that although it is right that higher-emitting vehicles pay more tax, lower-emission company cars such as plug-in hybrid vehicles continue to play an important role in supporting our transition towards zero emission vehicles and the decarbonisation of transport. The changes made by the clause will introduce a temporary benefit-in-kind tax easement for employers providing, and employees being provided with, PHEVs as company cars. I commend clauses 17 to 19 to the Committee.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clause 35 reduces the amount of capital gains tax relief available on disposal of company shares to the trustees of an employee ownership trust. The Government are committed to building on the success of the existing scheme so that the UK remains a leader in the field of employee ownership. However, the Government have to consider the public finances and the important issue of fairness in our tax system. The current regime allows business owners to dispose of valuable shareholdings for significant capital gains without paying any tax at all. The cost of the CGT relief alone reached £600 million in 2021-2022, and forecasts suggest that it could rise to more than 20 times the original costing to £2 billion by 2028-29, if action is not taken. The changes made by clause 35 will restrict the amount of CGT relief available to company owners who dispose of shares to the trustees of an EOT. For disposals on or after 26 November 2025, half of the gain on disposal to the trustees of an EOT will be treated as the disposer’s chargeable gain for CGT purposes, and charged to tax according to the usual applicable rules. The remaining half of the gain will be not charged to tax at the time of disposal. Overall, this means that disposals to an EOT will benefit from a rate of tax that is broadly equivalent to half of the usual rate, which will still constitute an effective incentive to encourage company owners towards employee ownership.

• 20 Jan 2026 · Draft Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 · Hansard source

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  I beg to move, That the Committee has considered the draft Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025. This statutory instrument delivers a comprehensive regime for the regulation of cryptoassets within the Financial Services and Markets Act 2000 framework, meaning that cryptoassets will be regulated under the same architecture as other financial services. Coupled with the rules being prepared by the Financial Conduct Authority, the regime will protect consumers and give technology and financial services firms the certainty they need to invest and grow in the UK. There is a general trend towards more people investing in cryptoassets in the UK; as they become more intertwined with traditional financial services, it is critical that we offer appropriate protection and get our approach to regulation right. Previous intervention in this space has focused on addressing the most urgent risks first, namely money laundering and misleading financial promotions. However, as it stands, most cryptoasset activities are not subject to broader financial services regulation covering matters such as conduct and prudential requirements. Consumers and industry have long called for clear and comprehensive oversight of cryptoassets in the UK, and the Treasury first consulted on these proposals in 2023 under the previous Government. In October 2024, this Government committed to implementing a regime largely in line with the consultation proposals. The instrument before us today delivers on that commitment. The instrument amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 to do two principal things: first, to define the categories of cryptoasset that will be in scope of the regime; secondly, to define the new activities that will be regulated. Generally, firms undertaking those activities in the UK or for UK consumers must be authorised by the FCA or risk committing a criminal offence. The new activities are: issuing qualifying stablecoin in the UK; safeguarding qualifying cryptoassets and relevant specified investment cryptoassets; operating a qualifying cryptoasset trading platform; dealing in qualifying cryptoassets as principal or agent, or arranging deals in qualifying cryptoassets; and qualifying cryptoasset staking. The instrument also uses the new designated activities regime to create frameworks governing public offers of qualifying cryptoassets and their admission to trading on relevant platforms and to tackle market abuse in relation to such cryptoassets. As people will have spotted, it also makes consequential amendments to various pieces of legislation to ensure that the regime can operate effectively and to ensure consistency between the cryptoasset regulatory framework and the rules that apply to traditional financial services. The provisions will take effect from 25 October 2027, which will allow the FCA to consult and finalise rules this year, and give at least 12 months for firms to apply for authorisation and the FCA to process applications ahead of the enforcement date. In conclusion, as I have set out, this regime will raise standards, strengthen consumer protection, help to tackle market abuse and support the responsible growth of the UK’s cryptoasset sector by providing clear and consistent rules. It brings cryptoassets within the robust Financial Services and Markets Act framework while ensuring that the sector has the space and flexibility to innovate. I hope the Committee will join me in supporting this instrument.

• 20 Jan 2026 · Draft Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 · Hansard source

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  I am grateful to the whole Committee for their consideration of this matter—in particular the shadow Economic Secretary to the Treasury, the hon. Member for Wyre Forest (Mark Garnier). I share his vital commitment to continuous innovation in financial services. I would argue that what has made London and our financial services hub as world-leading as we are is our continuous embracing of innovation—he went quite some way back with coffee shops. I also share his view that the next stage of innovation, which is critical to embrace, concerns stablecoin, digital assets and tokenisation much more broadly. It is fair to say that we are coming at this from the same place. With regard to stablecoin specifically, we wholeheartedly agree on the potential of stablecoin to play a really significant role in both retail and wholesale payments. The shadow Economic Secretary rightly refers to qualifying stablecoins as a definition being a subset of qualifying cryptoassets. He also recognises that this SI aims to bring the issuance of stablecoin within the FCA’s perimeter, which I distinguish from using stablecoin as a method of payment. Again, I think we are on the same page in relation to that. There is a deliberate carve-out for stablecoin payment activities in this SI, because we have carved out any transaction for the purposes of the supply of goods or services. The intention is to deal with the use of stablecoins as a method of payment in the context of the upcoming payments strategy. An awful lot of work will be done on that over the course of this year, because, as the shadow EST rightly refers to, the UK is a leader in payments innovation, and stablecoin is a key piece of that. There are other pieces of the stablecoin picture; as I am sure the hon. Gentleman knows, the Bank is currently consulting on a systemic stablecoin. Quite what will constitute “systemic” is yet to be defined, so that remains an area in which the industry is, understandably, looking for answers. As I said, the Bank’s consultation is open, and the FCA is also consulting on the detailed rules that will underpin this regime. I note, and very much welcome, the shadow EST’s support in principle for these measures. It is critical that we make sure that every single i is dotted and every t is crossed. We all want this to go right, and I certainly do not want there to be anything that subsequently becomes an issue. I am not sure that there is at this point but, as I say, while I note his support in principle, I would nevertheless be more than happy to talk to him at a mutually convenient time, and for him to bring in the experts that he referred to. We can then hopefully persuade him that this is completely kosher as it is, or he can tell us why he does not think that that is the case. That is a meeting that I am more than happy to have. I am grateful to members of the Committee for their consideration of this SI, and I hope they will join me in supporting these measures. Question put and agreed to.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  I am grateful to the hon. Member, as always, for his intervention. I was about to talk about the strength-based duty system introduced by the previous Government on 1 August 2023, following the alcohol duty review. The new alcohol duty system taxes all alcoholic products according to their strength, so duty increases with alcohol content, which represents a progressive shift. The reforms introduced two new reliefs: the draught relief, which reduced the duty burden on draught products sold at on-trade venues; and small producer relief, which replaced the previous small brewers relief and aims to support small and medium-sized enterprises and new entrants.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  My point was that the benefit of the decision not to update alcohol duty will be felt mostly in the off-trade, which is a point that the hon. Gentleman appears to understand. The small producer relief aims to support SMEs and new entrants by permitting smaller producers to pay reduced duty rates. Clause 86 maintains the generosity of the small producer relief, compared with main duty rates. The changes introduced by the clause maintain the real-terms value of alcohol duty, and balance the need to support alcohol producers, pubs and the wider hospitality sector with the need to support the public finances. Further to that, the changes also support smaller producers by maintaining the generosity of small producer relief. I therefore commend the clause to the Committee.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  The right hon. Member raises a good point, as did my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell), about the illegal market. We are reassured by the fact that the illegal betting market in the UK is relatively small, representing between 2% and 9% of legal online market stakes. The Gambling Commission is already tackling this risk and seeking to protect consumers. The additional £26 million that we will provide to the Gambling Commission over the next three years will go to better and further enforcement against the illegal market in this space. I hope that reassures him. At the autumn Budget 2024, the Government announced a consultation on modernising the tax treatment of remote gambling, including a proposal for a single duty covering all remote betting and gaming. The consultation ran from April to July 2025. Respondents strongly opposed a single duty, arguing that remote betting and gaming significantly differ in operating costs and harms. The Government have listened to those concerns and are not proceeding with a single remote betting and gaming duty. Instead, the Bill implements a targeted package of rate changes that will raise over £1 billion a year. It focuses on remote gambling, which has grown significantly, it protects UK horseracing and it supports lower risk community-based activities by abolishing bingo duty. I will now turn to the individual clauses in the Bill. The changes made by clause 83 will increase the rate of remote gaming duty, which applies to online games such as slots and roulette, from 21% to 40% on 1 April 2026. Remote gaming has relatively low operating costs and has grown rapidly in recent years, with gross gambling yield rising significantly above inflation, from £2.5 billion in 2015-16 to £5.2 billion in 2024-25, based on Gambling Commission figures. It is associated with higher rates of gambling-related harm, relative to other products. As we have discussed, NHS data shows that online slots and casino games have much higher proportions of problem gamblers than betting on sports, for example. By increasing the rate on remote gaming more significantly, this measure intends to reduce the incentive for operators to push customers towards higher harm products. Clause 84 will increase the rate for remote betting. General betting duty is currently charged at 15% for both remote and in-person betting, but the betting market has changed significantly in how it operates. Clause 84 will create a new, higher rate of general betting duty that will apply to bets placed remotely, such as online sports bets, from 1 April 2027. The new remote rate will be set at 25%, while the existing 15% rate will continue to apply to bets placed in person in licensed betting premises. The new 25% rate will not apply to remote bets on UK horseracing. Those bets will remain taxed at 15%, in recognition of the fact that operators already pay the 10% statutory horserace betting levy on horseracing bets, creating a de facto 25% burden when the 15% levy is taken into account. The new remote rate will also not apply to bets placed via self-service betting terminals in UK-licensed betting premises, pool bets and spread bets. Finally, clause 85 will abolish bingo duty, which is currently charged on the gross gambling yield from bingo, including in dedicated bingo halls. Bingo is a much lower-risk and community-based form of gambling, often providing an important social outlet, and it supports local venues, including around 250 bingo halls right across this country. Clause 85 and the associated schedule 13 will abolish bingo duty with effect from 1 April 2026. The Bill also makes consequential changes to ensure that bingo played in UK licensed bingo halls does not become liable to other taxes or duties as a result of that abolition. This Government know the importance of bingo halls in our communities, and we are proud to back them with this tax change.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  My hon. Friend raises an important point around jobs in the industry. He will be aware that employment in the gambling industry as a whole declined by around 20% between 2015 and 2023, so it is in gradual decline, and the trend predates this Bill. The jobs in his constituency are incredibly important, which is why the measures in this Bill deliberately focus on online gambling, rather than betting shops and casinos, which support more jobs and face higher operating costs, as I am sure the institutions in his constituency do.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  No, I will make some progress. The hon. Member for Keighley and Ilkley (Robbie Moore)—he represents a wonderful place in the world, which is where I was between Christmas and new year—referred to the difference between CPI and RPI. As he knows, we are uprating alcohol duty by RPI, as with many other taxes expressed in cash terms. He will know that RPI is widely used, and moving away from it is fraught with difficulty. I want to address the important points about business rates and employer national insurance contributions. We have discussed this already and, as Members will know, the Bill does not contain measures on either of those subjects, so I will not accept an amendment relating to them. I reiterate, however, that pubs are at the heart of our communities and we want them to thrive. As I have said, today we have heard some heartfelt references to particular pubs and the role that they have played in each of our lives. I could tell my own stories in that regard, but none of us would get home in time. As Members know, in the Budget the Chancellor introduced a £4.3 billion support package to give relief to those seeing increases in their business rates bills. As I said earlier, we have made it clear that we are continuing to work with and talk to the sector about that support, and about what further support we can provide and what action we can take.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  I thank hon. Members for their contributions to the debate on this group of clauses. Before I respond to the specific points that have been raised, I will reflect briefly on the core purpose of the Bill. The Bill contains fair and necessary reforms to the tax system, which unfortunately have been ducked for far too long. They will help to strengthen our economy for the long term, ensuring that we can cut the cost of living and inflation, and restore our public services and the public finances to health. The Tories and Reform—who are increasingly indistinguishable, it might be said—have already set out their choice: a return to the chaos and instability of the past. That approach failed before, and we are not going back. The clauses in this group restore pensions to their core and intended purpose, which is funding retirement. We are not allowing them to function as a tax-free vehicle for the transfer of wealth. Generous tax relief for retirement saving is preserved. The clauses ensure that pension wealth is treated fairly and consistently for inheritance tax purposes. They protect ordinary families, with more than 90% of estates still paying no inheritance tax at all each year after the changes. Let me turn to the non-Government amendments in this group. New clause 18 would require the Treasury to review the effects of the changes to pension tax policy, including their impacts on individuals, administrators and behaviour. A report would need to be laid in Parliament no later than six months from when the Act comes into force. This new clause is not necessary. The Government have published a tax information and impact note on the changes in the normal way. It sets out the impact on individuals, and accounts for the impact on personal representatives. As hon. Members know, the Government keep all tax policies under review through the monitoring of returns and communication with representative bodies and taxpayer groups. A review within six months of the policy taking effect on 6 April 2027 is not practical, not least because the data relating to inheritance tax in 2027-28 will not be fully available until the summer of 2030. That is the normal timescale, and it operates because tax liabilities data is available only with a long lag, partly because the filing of the relevant inheritance tax accounts is due 12 months after a death. For those reasons, new clause 18 should be rejected.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  I am grateful to hon. Members for their contributions to today’s debate, and particularly to my hon. Friends the Members for Wolverhampton North East (Mrs Brackenridge), for Morecambe and Lunesdale (Lizzi Collinge) and for Halesowen (Alex Ballinger) for their heartfelt speeches in favour of these measures. I also note the comments of the hon. Member for Gosport (Dame Caroline Dinenage), which I can assure her I did listen to in full, and of my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell), both of whom, I accept, have tremendous expertise in this area. As I have set out, we believe that the measures in clauses 83 to 85 deliver fair reforms to our system of gambling taxation because they reflect the reality of how gambling has changed in our country, the harms that now exist and the need for the tax system to keep pace as these changes continue. The Government’s objective is to strike a balance by raising revenue fairly while avoiding further pressures on land-based operators. New clauses 21 and 25 ask the Chancellor to review the impact of and make a statement on the effects of the increase in gambling duties.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  It was not me who had those engagements, but as I said, I confirm to the hon. Member that we are not proposing to make any changes to the treatment of free plays and free bets through the Bill, which I hope reassures her in that regard. I urge the Committee to reject new clauses 21 and 25 and agree that clauses 83 to 85 and schedule 13 should stand part of the Bill. Question put and agreed to. Clause 83 accordingly ordered to stand part of the Bill. Clause s 84 and 85 ordered to stand part of the Bill. Schedule 13 agreed to. New Clause 25 Statements on increasing remote gambling duty and introducing a new rate of General Betting Duty “(1) The Chancellor of the Exchequer must, within six months of this Act being passed, make a statement to the House of Commons on the effects of the increase in gambling duties made under sections 83 to 84 of this Act. (2) The statement made under subsection (1) must include details of the impact on— (a) sports and horseracing, (b) the number of high street betting shops, (c) the gambling black market, (d) the employment rate, and (e) the public finances.”— (James Wild.) This new clause would require the Chancellor to make a statement about the effects of the increase in gambling duties. Brought up, and read the First time. Question put, That the clause be read a Second time.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  Clauses 83 to 85 and schedule 13 make changes to the gambling duties regime, to better reflect the modern gambling market and to raise more than £1 billion a year to support the lifting of the two-child benefit cap. I will first speak briefly to the broader context of the package, and I will then turn to each clause. Gambling is a significant part of the UK economy, generating an annual gross gambling yield of around £16.8 billion in 2025, according to figures from the Gambling Commission. The industry has changed markedly in recent years, while the duty system has not changed since 2019. Most notably, there has been a structural shift from in-person to online gambling. Between 2015 and 2025, remote gambling grew by 80%, while land-based gambling has declined by 10%. At the same time, evidence of gambling-related harms has become even clearer. The estimated cost to the Government and society of gambling-related harms in England alone is between £1.05 billion and £1.77 billion a year. NHS figures show that over 40% of gamblers using online slots, bingo or casino games are considered to be at risk, compared with less than 15% of those betting in person on horseracing. Referrals for gambling addition have risen sharply—NHS England has doubled the number of clinics for problem gambling. I am grateful for representations from so many MPs and campaigners on this matter, alongside those with constituencies where horseracing plays an important role in the community and, indeed, the local economy. In the Budget, the Chancellor made it clear that changes to gambling taxation are fair, proportionate and for a purpose, as they will directly contribute to lifting an additional 450,000 children out of poverty. This Government are very proud of that. Unfortunately, the Opposition showed little regard for child poverty when they were in government, and it is entirely in character, albeit no less shocking, that they oppose this Government’s changes and would increase child poverty as a result. Reform UK is even more brazen.