Autumn Budget 2024 and Finance Bill 2024-25: Progress of the Bill

The Autumn Budget and the introduction of the Finance Bill 2024-25

The Chancellor, Rachel Reeves, presented the Autumn Budget on 30 October 2024.

The Treasury Select Committee held three oral evidence sessions on the Budget 2024 announcements.

Prior to the introduction of the bill, the Commons decided on 62 ‘ways and means resolutions’ (PDF), each of which covered one measure to be included in the bill. On 6 November, the House agreed to all resolutions (some on division) and the Finance Bill 2024-25 was introduced.

The bill

The bill has 86 clauses and 13 schedules. The bill and its explanatory notes are available on the Parliamentary bill pages. The bill extends to the whole of the UK.

Several of the measures announced in the Budget (such as the introduction of VAT on private school fees, and the increase in the rate of the energy profits levy) are included in the Finance Bill 2024-25.

Some measures announced in the Budget are not included in the bill. Namely:

• the announcement that agricultural and business property reliefs (APR and BPR) for inheritance tax would be capped at a combined value of £1 million. This is proposed to be implemented from April 2026, and as such is not included in this bill. 
• the increase in employer National Insurance contributions (NICs), is also not included in this bill. The Library has published a research briefing on the National Insurance Contributions (Secondary Class 1 Contributions) Bill 2024-25.

Second reading

The bill received its second reading on 27 November. While there were some areas of agreement with the measures in the bill from opposition MPs, several measures were criticised. The Official Opposition tabled a reasoned amendment to decline a second reading, citing a number of reasons. For example, because it would introduce VAT on private school fees. The Liberal Democrats also did not support the bill and had tabled their own reasoned amendment, which was not selected for debate.

The Conservatives’ reasoned amendment was selected for debate but was negatived on division (112 ayes to 333 noes), and the bill passed its second reading (332 ayes to 176 noes).

Committee of the whole house

It is customary with the Finance Bill for a selection of clauses to be debated in a ‘committee of the whole house’, where the Chamber sits as a committee, with a deputy speaker chairing. Following the bill’s second reading, the Commons agreed to a programme motion committing the following issues to Committee of the Whole House:

• Changes to capital gains tax (clauses 7 to 12, schedules 1 and 2)
• Changes to the energy profits levy (clauses 15 to 18, schedule 3)
• The introduction of VAT on private school fees (clauses 47 to 49)
• Changes to stamp duty land tax (clauses 50 to 53)

The committee of the whole house stage is scheduled to take place on 10 and 11 December 2024.

Relevant Library briefings

The Library has published research briefings on VAT on private school fees; on the taxation of North Sea oil and gas; on Stamp Duty Land Tax: Current situation and developments since 2020; and on capital gains tax: recent developments. The briefings reflect the government proposals included in the Finance Bill.