Finance Bill — Reject Second Reading — 26 Apr 2011 at 22:18

The majority of MPs voted in favour of measures in the 2011 Budget. Among other measures, the Bill:

• imposes income tax for 2011-12
• reduces the threshold at which higher rate income tax is paid from £37,401 to £35,001
• increases the income tax free personal allowance from £6,475 to £7,475
• reduces the main rate of corporation tax from 27 to 26 per cent
• reduce the annual investment allowance (AIA) cap from £100,000 to £25,000. (The limit to which taxable profits can be reduced by the amount of investment)
• to increase the rates of excise duty charged on spirits, beer, and wine
• to introduce a reduced rate of general beer duty on lower strength beers.
• to introduce a bank levy, a tax on banks based on their total applicable liabilities and equities.

The motion rejected in this vote was:

• That the amendment be made.

The amendment in question would have replaced the motion:

• That the Bill be now read a Second time.

with

• That:
• this House declines to give the Finance (No. 3) Bill a Second Reading because whilst the Minister of State for the Cabinet Office acknowledged that the country faces an ‘immediate national crisis in the form of less growth and jobs than we need’ this Bill does not address it;
• because the economic approach set out by the Government in this Bill puts jobs and growth at risk;
• because the Bill cuts capital allowances to businesses who invest in growth;

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• [1] Parliament's webpage on the Finance Bill 2011 (now an act)

Debate in Parliament | Source |