Finance (No. 2) Bill (First sitting)

Sean Woodcock Excerpts

Committee stage
Tuesday 27th January 2026 Public Bill Committees

[James Wild]

As we have heard, clause 30 will extend the 100% first-year allowance for expenditure on zero emission cars, including EVs, and EV charging points. As the Minister said, the extension runs for a year to March 2027 for corporation tax and April 2027 for income tax purposes. Our new clause, consistent with other amendments that we have tabled, would simply ask the Chancellor to come back and report to Parliament, and to the public, on the impact of her measures. I do not really understand this reluctance to understand the actual impact of the measures. As part of the Government’s broader regulatory reform approach, they seem keen on post-implementation reviews, but the Treasury holds out alone against its homework being scored, it would seem. We want to consider whether long-term support should continue to be provided to maintain UK competitiveness in green technology. It is, in essence, a call for evidence that could make a difference to business confidence and investment.

The allowance was first introduced in 2002 for low emission cars, and the threshold was tightened over time, reaching zero emissions from April 2021. The extension continues that policy, but only for a year, and the Government’s own costings suggest that the extension will cost £145 million. Businesses planning multi-year fleet transitions and charging infrastructure investments face repeated cliff edges. Each year, a one-year window does not help a company planning to electrify its fleet in two years’ time; it simply rewards those who are able to accelerate the investment within the next 12 months.

Does the Minister recognise that it creates a stop-start approach that could discourage investment, undermine industry confidence and, ultimately, slow the UK’s transition to clean, green technology? That is odd when, in many ways, the Government are accelerating full throttle towards 2030 electrification across the grid. Members may have pylons and other pieces of grid infrastructure being dumped in their constituencies, with no public recourse, in the name of the Energy Secretary’s net zero goals. It is worth asking whether their policy is joined up if it includes these incremental extensions.

In that spirit, I have tabled new clause 3 so that hon. Members can judge whether the Government have a coherent approach. It would require the Chancellor to assess, transparently and on the record, whether a long-term support system is justified to keep Britain competitive in the global race for green manufacturing. A formal assessment would give Parliament and businesses the information they need to plan ahead.

In the debate on clause 11, the Minister referred to the long-term certainty provided by committing to a 25% corporation tax rate for this Parliament. Of course, that is not actually in the legislation, but we welcome that commitment and the greater certainty, and similar certainty could be given in this area. A formal assessment could also ensure that public money is being used wisely and that policy provides the certainty to unlock the investment we all want to see.

Given their 2030 obsession, why have the Government again chosen a one-year extension that provides limited certainty for fleet operators or for the charging infrastructure sector? I see that the hon. Member for Banbury is getting ready to dive into the debate. Will the Minister support new clause 3 and commit to a proper assessment of the lasting framework that is needed to secure Britain’s place in the green technology economy of the future?

[Sean Woodcock (Banbury) (Lab)]

The shadow Minister talks about a stop-start approach from this Government. I find that a bit brass neck, to be frank, considering the record of the previous Government, who shifted the dates and forced all sorts of investment with regard to EVs.

I welcome the measure. As part of the just transition, it is important to encourage the roll-out of EV infrastructure and charging points, particularly in rural constituencies such as mine where that is a significant challenge. Members will not be surprised to hear that I do not support the official Opposition’s new clause, but there is an important debate about how we ensure that investment is rolled out more equitably into constituencies such as mine. I ask the Minister to comment on how the Government see the roll-out of EV infrastructure in areas where there are issues with the electricity grid and network, so that the just transition can happen in those areas as well.

[Mr Reynolds]

The Liberal Democrats wholeheartedly support electrifying our vehicle fleet. It is a shame that some other political parties and politicians have stopped at a red traffic light when it comes to electrification. [Hon. Members: “More!”] I will not make any more traffic jokes—apologies.

That is why it is quite concerning to see the 2027 expiry date for the capital allowance. When potential EV owners are surveyed, their biggest concern is charging their vehicles, and it is the same for big employers. We all know that businesses need long-term security and a long-term commitment. That is why businesses were not doing well under the last Government, and why they retreated when the 2024 Budget brought in so many changes for businesses.

Long-term security is clearly what businesses need to invest. One-year extensions on top of one-year extensions do not give the certainty that businesses need to invest in the electrification of fleets—they need to do it this year or not at all. Once we take away that capital bid, it is very difficult to get back, so I would like to see that changed.

Finance (No. 2) Bill (Second sitting)

Sean Woodcock Excerpts

Committee stage
Tuesday 27th January 2026 Public Bill Committees

[Lucy Rigby]

A criticism of complexity has been made. The aim of these reforms is, of course, simplicity. I think it is recognised across the House that in matters of taxation, simplicity is better. We are ensuring that the legislation works as it is intended to do. The shadow Minister, the hon. Member for North West Norfolk, referred to the Chartered Institute of Taxation. It is important to note this quote from the institute:

“Moving from domicile to residence as the basis for taxing people who are internationally mobile makes sense.”

As well as being a major simplification, it is a fairer and more transparent basis for determining UK tax. Residence is determined by criteria far more objective and certain than the subjective concept of domicile. Replacing the outdated remittance basis is sensible, and the temporary repatriation facility offers a helpful transition.

Another criticism is retrospection. In this instance, the Government feel that a retrospective change is a proportionate response to protect revenue, which, as the hon. Member for Mid Bedfordshire said, is essential for public services. This change will prevent taxpayers from benefiting from unintended windfalls and promotes consistency in the application of rules, bringing the capital gains position into line with the income tax provision. In most cases, trusts will not yet have made capital distributions, meaning that beneficiaries and trustees will have advance notice and can plan their affairs.

A further topic that that came up is the reporting of every element of FIG. I have a note on that somewhere, so I will come back to it. I will deal first with the suggestion that restrictions on the TRF are arbitrary. The position of someone who is temporarily abroad arose. The TRF is designed to encourage people to be UK-resident and bring funds into the UK economy. Allowing non-residents to use the TRF would let individuals benefit from the reduced charge without living here or contributing to the UK economy, which would reduce the incentive to become or remain UK-resident.

As I said, I reject amendment 1 because there are already measures in place that prevent double counting. I have dealt with amendment 2. I want to deal with the reporting of every element of FIG, which I have a note on, as I said. [Interruption.] That is the wrong note. I will have to come back to that.

[Sean Woodcock (Banbury) (Lab)]

We have heard from Opposition Members that there are families watching this Finance Bill Committee with their bags packed in case their amendment does not pass. Does the Minister share my scepticism that people who hung around through a botched Brexit, Liz Truss and 11% inflation will leave the country on the basis of whether an amendment passes or not?

[Lucy Rigby]

I am grateful to my hon. Friend for his intervention. I think it is right to say that the reporting of every element of FIG will not be necessary. I am afraid I shall have to confirm in writing exactly why that is the case.

Question put and agreed to.

Clause 43 accordingly ordered to stand part of the Bill.

Schedule 3

Non-resident, and previously non-domiciled individuals

Amendment proposed: 30, in schedule 3, page 271, line 26, leave out from “amount” to end and insert

“is the lower of—

(a) the value of the amount when it first arose to the individual, or

(b) its value on 6 April 2025.”—(James Wild.)

This amendment provides that where an investment derived from foreign income has fallen in value, the temporary repatriation facility (TRF) charge is paid on the reduced value of the investment at the point the TRF opened.

Question put, That the amendment be made.

Agricultural Property Relief and Business Property Relief

Sean Woodcock Excerpts

Monday 5th January 2026 Commons Chamber

[Dan Tomlinson]

We will, of course, continue to engage with, listen to and work with farming communities on the policies that we are putting forward. It is interesting to see and hear that there is at least one wealth tax that the Green party does not support.

[Sean Woodcock (Banbury) (Lab)]

I thank farmers in my constituency of Banbury and Chipping Norton for engaging constructively with me on the issue—well, the vast majority of them, anyway. I know that they will welcome these changes, as they will welcome the record £1.8 billion investment in sustainable farming and food production provided by this Government. However, they are concerned about trade deals, having been left high and dry by the previous Government, so will the Minister confirm that this Government will protect farmers, not sell them down the river as happened previously?

[Dan Tomlinson]

Having grown up in rural west Oxfordshire, I know the importance of farming and rural communities in the fantastic county of Oxfordshire, which thankfully now does not have a single Conservative MP—long may that continue. It is a very good thing that we have strong Labour representatives in north Oxfordshire who are continuing to fight the good fight for their communities.

Conduct of the Chancellor of the Exchequer

Sean Woodcock Excerpts

Wednesday 10th December 2025 Commons Chamber

[James Murray]

I would take the hon. Gentleman more seriously if he spent a little less time opposing the decisions we take on tax to fund public services, because we are taking fair and necessary decisions on tax precisely to fund the NHS and the other public services on which we all rely.

I have set out at length what we are doing to protect the NHS, but the Chancellor’s second priority going into the Budget was to tackle the cost of living, and that is exactly what we are doing. At this Budget, the Chancellor chose to freeze rail fares for the first time in 30 years, to extend bus fare caps, to freeze prescription charges, to increase the basic and new state pension, to raise the minimum and living wages, to extend the fuel duty cut, to help more than half a million children who would otherwise live in poverty, and to save the average household £150 off their energy bills. As the Bank of England deputy governor told Members yesterday, this Budget will reduce inflation by between 0.4% and 0.5%.

The Chancellor’s final priority going into the Budget was to cut our national debt and Government borrowing, and that is exactly what we are doing.

[Sean Woodcock (Banbury) (Lab)]

The Conservatives have spent a lot of this debate saying that apologies are due from the Government, yet under them £11 billion of taxpayers’ money was lost in covid fraud. Does the Minister agree that if an apology is due from any party in the House, it is them?

[James Murray]

My hon. Friend is absolutely right. Sorry seems to be the hardest word to say for Opposition Members when it comes to covid fraud, the state in which they left the NHS, the Liz Truss mini-Budget and everything they did to public services and our economy, writing off the next generation and vast swathes of our nation. They should stand up and say sorry.

The priority for the Chancellor at the Budget was also to make sure that we cut our national debt and Government borrowing. Because of choices that the Chancellor made at the Budget, borrowing will fall as a share of GDP in every year of this forecast. Net financial debt will be falling as a share of GDP by the end of this Parliament, and will be lower by the end of the forecast than when we came into office. As I have said already, our headroom now stands at £21.7 billion, meeting our stability rule a year early, giving businesses the confidence to invest and leaving Government freer to act when the situation calls for it.

Whatever mischief the Conservatives try to make and however personal they make their attacks, the truth is that the Chancellor was clear about the challenges the country faces. She set out her priorities in taking those challenges head-on, and she delivered a Budget that meets the priorities of the British people now and in the future.

--- Later in debate ---

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I am the former Chair of that Committee, Madam Deputy Speaker, but I appreciate the chance to make a couple of additional points.

My right hon. Friend the Member for Central Devon (Sir Mel Stride) set out an extensive case. In the speech I made right after the Budget, I mentioned that shenanigans had happened with regard to the Budget. I think we are beginning to find out a bit more about what those shenanigans were. The OBR has published a full analysis of the error that led to it publishing the Budget before it was delivered by the Chancellor.

On 1 December, the chair of the Office for Budget Responsibility rightly resigned for that technical breach. I think he showed real leadership, and I thank him for his service. However, it has distracted us from a much more serious breach that happened. The Chancellor clarified this morning in evidence to the Treasury Committee that there are, apparently, two categories of leaks from the Treasury: authorised leaks and unauthorised leaks. We are going to hear a report from the permanent secretary about the unauthorised leaks, but I think the authorised leaks also need focus.

Let us face it: this all started in the run-up to the general election, when the Chancellor promised many, many times not to raise taxes. Then, in what was probably one of the greatest robberies since Ronnie Biggs and the great train robbery, she managed to increase taxes by £40 billion a year in her first Budget, before increasing them by a further £26 billion a year in this recent Budget.

[Sean Woodcock]

Will the hon. Lady give way?

[Dame Harriett Baldwin]

I would love to, but I am going to try to really race through what I have to say.

There is a track record here of saying one thing and then doing another. What we see is a revealed preference from our Chancellor for tax hikes. She was unable to deliver the welfare reforms she sought, and she has been unable to deliver much in the way of savings from any Department, so she is always going to go for tax hikes. We have seen that in her behaviour, despite her assurances to the contrary.

I just want to point out how damaging all this speculation has been to decision makers in the British economy. These authorised leaks have led to changes in behaviour across the UK economy; people have made real-world, real-life decisions. Now we know that at every fiscal event during this Parliament the Chancellor will have a default position to tax more: to tax homes more; to tax cars more; to tax pensions more; to tax savings more; to tax jobs; to tax the farm that farmers want to pass on to their children; to tax anything she can justify.

That is the lasting legacy of this period of shenanigans, selective leaking and manipulating behaviour. I believe it has done lasting damage to our Chancellor, and we are right to condemn her conduct today.

Inheritance Tax Relief: Farms

Sean Woodcock Excerpts

Monday 10th February 2025 Westminster Hall

[Sean Woodcock (Banbury) (Lab)]

I will keep my comments brief. Every week when I am out in the constituency, I take the time to visit a farm, and this issue always comes up. It is concerning for many in my constituency. They are clear that it is not as though everything was ticking along nicely and then suddenly this hit; they were sold down the river by the Conservative party, with the trade deals with Australia and New Zealand. But this has caused a great deal of consternation.

A chap I visited last month said, “I don’t want to tell a tale of woe. I am doing okay. There are good farmers and there are bad farmers, and that affects profitability, but I am concerned that this policy is going to rob me of my inheritance, which several generations of my family have worked incredibly hard to build up.” This level of concern, justified or not, merits the Government’s listening. I hope that they will do so.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Sean Woodcock Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Dr Sandher]

The Government will set out exactly what the health and care budgets will be before next April, and the investment will go towards improving the health and care system that we and our loved ones rely on. All the money that is being invested in the health service, our teachers and elsewhere across the economy needs to be raised—and, yes, we are raising it from the largest employers.

By increasing the employment allowance, we are protecting the smallest businesses. Half of businesses will pay the same national insurance or less. A quarter of a million of the smallest businesses will see their national insurance tax bill fall. From tax revenue, we will invest in our people and our places to ensure that they can thrive, building on public investment in our infrastructure and our services.

Countries that grow the fastest are not simply those that tax the least. If all we needed to do to create prosperity was cut taxes to their lowest level, Somalia would be richer than Sweden. However, IKEA is not about to relocate to Mogadishu. The countries that grow the fastest are those that raise a return on investment. Returns are higher when businesses have the roads that they need to transport their goods, workers have the skills that they need to produce more, and all of us have cheaper electricity and well insulated homes. Those are the decisions that we have made, and were proud to make, in this Budget.

Across the Atlantic, in the United States, we have seen a multi-trillion dollar investment package, which helped to deliver the fastest growth in the G7. There were new roads, new factories and new clean energy projects from Wisconsin to Wyoming. That public investment led to the fastest post-pandemic recovery in the G7, whereas we had one of the weakest. That is why, here at home, we are investing to raise returns; investing in our schools, our NHS and home insulation to make us better educated and healthier and to get energy bills down for all and for good

[Sean Woodcock (Banbury) (Lab)]

Opposition parties have spent an awful lot of time attacking various measures in the Budget. Does my hon. Friend agree that if they are going to do that, they need to point out which investment—money to our schools or to hospitals—they would not provide to alleviate their concerns?

[Dr Sandher]

I entirely agree with my hon. Friend. If Opposition parties wish to criticise the tax rise on the largest businesses and the wealthiest individuals, they must set out what services they will cut and who will not get a GP appointment or the teachers that are needed.

We are investing to raise returns. Investing in our schools, NHS and home insulation makes us better educated and healthier and gets energy bills down for all of us. That investment is paid for through tax revenue. The principle behind which we raise that is simple yet powerful: it is about collective contribution for collective benefit, sharing in the rebuilding of our nation and, of course, the rebuilding of hope.