March 2016 Budget — 22 Mar 2016 at 18:23
The budget approved by the majority of MPs in this vote set out plans for spending £772 billion in 2015-16, with forecast revenue of £716 billion (a deficit of £56 billion).
Key points from the budget:
- An increase in the personal income tax free allowance to £11,500 for 2017-16 (the previously announced figure for that period was £11,000)
- An increase in the higher rate threshold by £2,000 to £45,000 in 2017-18
- An increase in the annual amount which can be put into a tax free Individual Savings Account (ISA) to £20,000 in April 2017 and introducing a Lifetime ISA from April 2017 for under 40s in which people can save up to £4,000 each year and receive an additional 25% bonus from government.
- A new Help to Save scheme for people on low incomes, providing a 50% government bonus on up to £50 of monthly savings,
- No change in fuel duty
- No change in duty on beer, spirits and most ciders
- A policy of expecting all schools to become academies by 2020, or to have an academy order in place to convert by 2022
- A new soft drinks industry levy to be spent on school sport and school activities
- A cut in the rate of corporation tax to 17% in 2020
- A cut in business rates for all properties in England
- A cut in the higher rate of Capital Gains Tax from 28% to 20% and the basic rate from 18% to 10% from April 2016 (except for residential property and carried interest), and to extend entrepreneurs’ relief to long term investors in unlisted companies
- Abolition of Class 2 National Insurance contributions paid by self employed people from April 2018
- Confirms a new mandatory National Living Wage (NLW) will come into effect from 1 April 2016, set at £7.20 an hour for workers aged 25 and above
- Exempting individuals with property income or trading income below £1000 from needing to declare or pay tax on that income from April 2017
- "Devolution deals" with Greater Lincolnshire, East Anglia, and the West of England and further devolution deals with Greater Manchester and Liverpool City Regions as well as a Cardiff Capital region deal.
The motion supported by the majority of MPs taking part in this vote was:
- (1) That it is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance.
- (2) This Resolution does not extend to the making of any amendment with respect to value added tax (except in relation to value added tax on insulation, solar panels and any other category of energy-saving material or their installation) so as to provide-
- (a) for zero-rating or exempting a supply, acquisition or importation; other than in respect of value added tax on women’s sanitary products
- (b) for refunding an amount of tax;
- (c) for any relief, other than a relief that-
- (i) so far as it is applicable to goods, applies to goods of every description, and
- (ii) so far as it is applicable to services, applies to services of every description.
After the budget speech, during the debate on this motion, MPs amended the motion to permit zero-rating, or exempting women’s sanitary products from VAT. This enabled the VAT to be removed, subject to European Union restrictions.
-  March 2016 Budget Documents, Gov.UK
-  Article 110 of the European Union Council Directive 2006/112/EC
Votes by party, red entries are votes against the majority for that party.
What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.
What is Turnout? This is measured against the total membership of the party at the time of the vote.
|Party||Majority (Aye)||Minority (No)||Both||Turnout|
|Con||300 (+2 tell)||0||0||91.5%|
|Lab||0||204 (+2 tell)||0||89.2%|