Finance (No. 2) Bill: Ways and Means (Amendment of Power to Make Further Provision Relating to Abolition of Lifetime Allowance Charge)

That provision may be made amending paragraph 134 of schedule 9 to the Finance Act 2024 (including provision authorising regulations to have effect for the tax years 2024-25 and 2025-26).—(Dan Tomlinson.)

I draw the House’s attention to the unusual circumstances of moving a Ways and Means motion after the Finance Bill. During the course of the Budget, we had a discussion on the founding motions that had been laid at that point. They did not include an amendment of the law motion, which historically was sensible practice and which Labour previously complained about the Conservatives removing—the Conservative Chancellor at the time said it was simply an administrative change. In fact, removing the amendment of the law motion means that the Government have now to table new founding motions, otherwise they cannot make the tax changes they are looking to make. It also means that no Member in this House can move anything that is outside the scope of those motions. It restricts debate by any Member of taxation measures that they would like to introduce if they sit outside those founding motions.

Progress has been made on the Bill. Committee proceedings were held in the House initially and moved into the Bill Committee. I have previously raised significant concerns about the fact that the Finance Bill does not take oral evidence at any stage in its passage through the House. It does not take oral evidence in the Commons because it has already had part of the Committee stage in the main Chamber, despite the fact that the stuff we do in Bill Committee is usually on the more technical pieces, which would very much benefit from oral evidence sessions, and that it would not hold up progress on the Bill much. In fact, we have had a significant amount of downtime with this Finance Bill, and there have been periods of time when those oral evidence sessions could have been taken. We end up in a situation where scrutiny happens, we look at all the things included in the Bill, we come to Report after line-by-line scrutiny, and then the Government add new founding motions in order to add new parts to the Bill.

I have significant concerns about the reasons scrutiny is being conducted in this way. Will the Government commit either to ensuring that they do not do this again, because it is not a good way to ensure transparency and scrutiny of legislation, or to including an amendment of the law motion, as historically was normal practice? That would allow the Government to make the changes they need to make today without having to table new Ways and Means motions.

If the Minister is concerned about that course of action, he might want to note that 45 minutes have been scheduled for each of these Ways and Means motions, and in future iterations of the Finance Bill it would be entirely possible for Members to talk for 45 minutes on them. Adding new Ways and Means motions gives Members additional time to talk about those specific things, which would reduce scrutiny on the important things that the Minister, I am sure, wishes to talk about when we come to the main part of the Finance Bill. If the Minister could commit to having a look at the way that this was done to try to ensure that we are not again in the situation where Ways and Means motions are added at the very last stage of a Bill’s progress, or, as I say, to including that amendment of the law motion, which would allow them the necessary flexibility, that would be helpful and would certainly dissuade me from talking for 45 minutes on a Ways and Means motion in the next iteration of the Finance Bill.

I thank the hon. Member for Aberdeen North (Kirsty Blackman) for her remarks, as well as for her scrutiny of this process, which I appreciate no matter where it comes from.

The hon. Member is right to flag that this is not the typical process. For future Finance Bills, I will—if I am in my position—endeavour to ensure that Ways and Means motions are not brought at this late stage. She is also right to point out that this debate—although I do not believe that there are any other bobbers—and any debate on the subsequent motion could go on for 45 minutes, and that discussions may ensue. I would be happy to consider the process.

This technical amendment allows for the introduction of regulations required as part of the abolition of the lifetime allowance, in order to have a retrospective effect going back to the point when the lifetime allowance was originally abolished. That ensures that the changes we are making operate as intended. It is a small and technical measure, but I take the hon. Member’s point that it adds a new part to the Bill and means that a new resolution has been brought forward. I hope that—notwithstanding the valid points raised by the hon. Member—Members will understand that position, and I commend the motion to the House.

Finance (No.2) Bill: Ways and Means (Offshore income gains)

That provision (including provision having effect for the tax year 2025-26) may be made revoking—

(a) paragraphs (2) to (5) of regulation 20 of the Offshore Funds (Tax) Regulations 2009, and

(b) paragraphs (4) to (6) of regulation 21 of those Regulations.—(Dan Tomlinson.)