Finance (No. 2) Bill

Nusrat Ghani Excerpts

Tuesday 16th December 2025 Commons Chamber

[Dan Tomlinson]

That is very kind of my hon. Friend. I know that he and others on all sides of the House have made representations over many years on behalf of their constituents affected by the loan charge. I have met some of those affected and members of the all-party parliamentary group. In the months that I have been in this role, having been appointed only on 1 September, I have worked hard to ensure that we come forward with proposals that I hope will help to draw a line under this issue. I hope that those affected can see we have a reasonable and fair set of proposals that will help those who were subject to the loan charge to be able to come forward and to settle; I really encourage those individuals to come forward.

Alongside those changes, we are making steps to continue to close the tax gap by closing loopholes and removing barriers to ensure that people pay the tax that they owe, including raising an additional £2.4 billion in ’29-30 by introducing further reforms to pursue those who bend or break the rules to collect more unpaid taxes. We are also going to modernise the tax system to make it easier for taxpayers to get their tax right the first time. With the choices delivered in this Finance Bill, that will bring the total additional revenue raised by closing the tax gap in this Parliament to £10 billion by 2029-30.

My right hon. Friend the Chancellor has spoken about this Budget being

“a package, not a pick-and-mix”,

and that is so important for our public finances and our public services. Through this Bill, we are choosing to deliver long-overdue reforms to update our tax system so that it can work for a modern, dynamic and thriving economy, and funding vital policies such as the removal of the two-child limit, which will lift half a million children out of poverty.

This Bill is about delivering on choices: choices to protect working people; choices to cut energy bills, and to freeze train fares and prescription charges; choices to boost wages and reduce poverty; and choices to cut inflation to bring down mortgage costs. It delivers the Government’s commitment to this country to build a stronger and fairer economy in which living standards rise, to see child poverty fall, and to ensure that public services are improved up and down the country. With every measure in this Finance Bill being geared towards that goal, I commend this Bill to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Chancellor.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. As it is the Second Reading of a finance Bill, I cannot impose a time limit, but I can suggest that colleagues keep their remarks to around six minutes.

[Callum Anderson (Buckingham and Bletchley) (Lab)]

I am pleased to contribute to this debate, and I congratulate my hon. Friend the Exchequer Secretary on bringing forward his first finance Bill. I hope it is the first of many.

Given the limited time that I have, I will focus my remarks on the Government’s central mission: economic growth. The Government have rightly placed investment and reform at the heart of their strategy, and they are removing the barriers to economic growth that for too long have held back this country and the towns, villages and city that make up the Buckingham and Bletchley constituency—be it through major planning reforms, cutting regulatory costs, investing in skills and apprenticeships, or undertaking fundamental pensions reform to free up more risk capital. This pro-investment and pro-reform approach lays the foundation not only for our long-term economic growth across the UK, but for our long-term global competitiveness.

This country is a great place to start a business, despite what Opposition Members have said, but scaling a business has been too difficult for too long for too many entrepreneurs, and too many firms are acquired early by private capital—often from abroad—and therefore fail to scale globally. There are a number of fantastic, innovative and high-growth companies in the Buckingham and Bletchley constituency—be it Pulsar, Envisics or Carnot Engines—and I want all of them to realise their full potential in my constituency, not overseas. I believe that this Bill goes some way towards enabling that, and it is not just those companies that it will help. I have read many commendations from the Startup Coalition and the ScaleUp Institute, which have backed many of the measures that I will cover in my remarks.

Clauses 13 to 16 and clause 82 back ambition, encourage investment and reward those who want to take risks. Expanding the enterprise management incentives—by raising the employee limit to 500, the gross assets limit to £120 million and the holding period to 15 years—ensures that more high-growth, innovative companies can attract and retain the world-class domestic and global talent that they need. For many, joining a fast-growing company is a leap of faith, and when that risk pays off, the people who create the success should share in the reward.

I also welcome clauses 14 and 15, which follow the logic that I just set out with regard to the enterprise investment scheme and venture capital trusts. I particularly welcome the raising of the company investment limits and the lifetime caps, which will ensure that more early-stage companies can scale here in the UK, not overseas. Similarly, raising the respective gross assets limits before and after share deals sensibly reflects modern growth realities. I believe that these reforms will support life sciences, green technology and advanced manufacturing, all of which are sectors identified in the Government’s industrial strategy, which they published earlier this year. The reforms will enable earlier capital raising and faster, more efficient scaling, and make it far more likely that more companies will become national champions and companies of global consequence that are anchored here in the UK.

The final clause that I particularly welcome is clause 82, on the new UK listing relief, which removes the 0.5% stamp duty reserve tax on transfers for newly listed companies. This measure has been called for by UK financial services, and also by a wide range of sectors that are included in the industrial strategy, for a significant period of time. I believe that the clause will boost liquidity, incentivise more investors of all types—be they institutional or retail—to buy British, and entice more domestic companies to follow in the footsteps of Magnum, Shawbrook and the Beauty Tech Group by listing in London. I am pleased that this Bill strengthens the UK’s ability to compete globally, to support its entrepreneurs and to make sure that the UK is the best possible place to scale a company.

I will close my remarks by mentioning what I hope will be given consideration in a finance Bill in future parliamentary Sessions: the Government may wish to dedicate themselves to pro-growth and pro-enterprise tax reform. The previous Government, and indeed many Governments of different political orientations, have increased the length of the tax code, increased the number of cliff edges, complicated the tax base and, frankly, fundamentally failed to close or tackle various loopholes. As we rededicate ourselves to growth in this parliamentary Session and in future parliamentary Sessions, we would do well to ensure that simplification and fairness anchor our growth agenda.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

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[Madam Deputy Speaker (Ms Nusrat Ghani)]

I cannot set a time limit, but I will ask colleagues to monitor their own timekeeping and I suggest that six minutes would be a good time.

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[Seamus Logan]

I am glad to hear that the hon. Member respects our desire for Scottish independence. I simply say to him: when will this Government respect the democratic will of the Scottish people?

I could go on to talk about energy and the coastal growth fund—two measures that, again, have particularly hurt my constituents—but I will leave it there.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

We come to the final Back-Bench contribution. I just note that the Front Benchers wish to be on their feet by around 6.40 pm.

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[Gideon Amos]

I agree with the hon. Gentleman. Small businesses are the backbone of the economy, and the promise to reform business rates made by the last Government needs to be delivered upon by this Government.

As I was saying, as a result of quantitative easing funds, the big four banks alone will make £50 billion of profit this year. The boost that people and the high street need is both the cut to electricity bills and the 5% VAT cut that the Lib Dems propose, funded by a windfall tax on those bank profits. It is time the Government backed small businesses like those in Taunton and Wellington—part of the biggest and most important sector of the British economy—after the economic chaos under the Conservatives. It would be a boost to going out in the evening, a boost to our pubs and restaurants, and a positive boost to the economy. That is the kind of Budget we needed, and that is the kind of Budget the Liberal Democrats would have delivered.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

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[John Slinger (Rugby) (Lab)]

On a point of order, Madam Deputy Speaker. I would be grateful if you could confirm whether any points of order raised by Members of this House since this parliamentary Session began have actually been deemed to be points of order. If this is not the case, could you provide guidance to hon. and right hon. Members about what does constitute a point of order, so that the time of Members is not wasted in this House?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I am grateful to the hon. Member for giving notice of his point of order on points of order. I can say that his point of order was most definitely not a point of order. For clarity, and for the benefit of the hon. Member, a point of order should in principle draw the Chair’s attention to a possible breach of the House’s rules of order, which his point of order failed to do. I would not like to speculate on how many points of order actually have served this purpose—I am sure many now will—but the hon. Member raises an interesting question. Hansard can point out how many points of orders have been raised that, like his, were obviously not points of order.