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Budget 2025 Resolutions

  • 02/12/2025
  • Posted by: Valerie Vaz MP
  • Category: News

The Chancellor of the Exchequer, Rachel Reeves MP, delivered the Budget on 26 November 2025. The Government aims to cut the cost of living by tackling inflation, lowering energy bills, and implementing a one-year freeze on regulated train fares and prescriptions charges; cut the NHS waiting list in England by delivering more appointments and creating 250 new Neighbourhood Health Centres; and cut debt and borrowing.

In the days following the statement, the House of Commons meets to debate on the budget resolutions, which form the foundation of the Finance (No.2) Bill that will bring the plans from the Chancellor’s statement into law. At the end of the debates, the House of Commons votes on all the resolutions.

On 2 December 2025, the House voted on 7 resolutions:

Budget Resolution No. 4: Income tax (dividend rates): This will increase the ordinary and upper rates of dividends by 2%, with effect for the tax year 2026-27 onwards. Ayes 371 Noes 166.

Budget Resolution No. 5: Income tax (savings rate for future years): This allows Parliament to include measures in a Finance Bill that decide savings tax rates for the tax year 2027-28 and future years. Ayes 369 Noes 166.

Budget Resolution No. 9: Basic rate limit and personal allowance for tax years 2028-29 to 2030-31: This allows Parliament to freeze the basic rate limit and personal allowance from 2028-2031. Ayes 348 Noes 176.
Budget Resolution No. 28: Capital gains tax (employee-ownership trusts): This resolution, which had statutory effect from 26 November 2025, taxes only half of any profit when a company disposes of shares to an employee‑ownership trust, but the usual tax reliefs will not apply. Ayes 362 Noes 164.
Budget Resolution No. 50: Inheritance tax (limiting agricultural and business property reliefs etc): This amends the Inheritance Tax Act 1984 to limit the amount of agricultural and business property relief, and removes the exclusion of property owned overseas from Inheritance Tax. Ayes 327 Noes 182.
Budget Resolution No. 51: Inheritance tax (pension interests): This allows Parliament to make provision to to charge inheritance tax on pension benefits paid after a member of that pension scheme dies. Ayes 364 Noes 167.
Budget Resolution No. 64: Rates of alcohol duty: This sets new rates of alcohol duty, which will increase in line with inflation from 1 February 2026. Ayes 357 Noes 174.
A date is yet to be announced for the second reading of the (Finance No.2) Bill.