Contribution
We are securing energy in our country and giving people an energy support package, as I outlined.
Crucially, we are putting an end to the Tories’ practice of loading levy costs on to bills, because, unlike them, we are determined to bring down energy bills for families.
Thirdly, we are supporting companies to start, scale and stay in the UK. We are introducing a new founders’ relief for founders of high-growth companies, and a new young entrepreneurs allowance to cover a year of living costs for young founders while they turn their ideas into businesses. Crucially, and as recommended by the women in tech taskforce, we are establishing a new scale-up programme to support female founders. The British Business Bank will also double its commitments to women-led businesses.
Finally, we have taken action to tackle the big challenges facing our country—most importantly, on defence. The first duty of any Government is to keep the country safe, and I am proud that this Labour Government have driven the biggest boost in defence spending since the end of the cold war. At the Budget last week, we took difficult decisions to reprioritise budgets across Whitehall in order to fund the £15 billion defence investment plan in full. At the spending review next year, we will set out the details of how we will meet our NATO commitment to spend 3.5% of GDP on defence by 2035. Crucially, that includes setting a target of 3% by 2030. This is a “credible path” to the UK meeting our NATO commitments—not my words, but those of the NATO Secretary-General, Mark Rutte, who has welcomed our plans.
I know that there is plenty of disagreement in this House on the measures in the Budget, but there is one area where I think we agree: we stand shoulder to shoulder with the people and Government of Ukraine. This Budget provides £10 billion of additional economic and military support for Ukraine. Together, we are sending a clear message to Moscow that Britain will stand with Ukraine for as long as it takes.
This is a Budget built on fiscal discipline. It charts a way through difficult global economic headwinds. It provides breathing space for families and businesses now. It kick-starts work on the big changes needed to put this country on a better course on devolution, energy and defence, and it will deliver good growth in every postcode and strengthen our national security. This is a Budget built on Labour choices—breathing space today, and fresh hope for the future.
Question put and agreed to.
Resolved,
That income tax is charged for the tax year 2027-28.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
The Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).
2. Income tax (main rates)
Resolved,
That for the tax year 2027-28 the main rates of income tax are as follows—
(a) the basic rate is 20%,
(b) the higher rate is 40%, and
(c) the additional rate is 45%.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
3. Income tax (default, property and savings rates)
Question put,
That—
(1) For the tax year 2027-28 the default rates of income tax are as follows—
(a) the default basic rate is 20%,
(b) the default higher rate is 40%, and
(c) the default additional rate is 45%.
(2) For the tax year 2027-28 the property rates of income tax are as follows—
(a) the property basic rate is 24%,
(b) the property higher rate is 44%, and
(c) the property additional rate is 49%.
(3) For the tax year 2027-28 the savings rates of income tax are as follows—
(a) the savings basic rate is 24%,
(b) the savings higher rate is 44%, and
(c) the savings additional rate is 49%.
(4) In consequence of the provision made by paragraphs (2) and (3), sections 5 and 7 of the Finance Act 2026 (which had set the property rates and savings rates for the tax year 2027-28) are repealed.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.