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Budget 2026 and Finance Bill 2026-27

Budget 2026

On 28 October, Chancellor John Healey presented the 2026 Budget to the House of Commons. Alongside this, the Office for Budget Responsibility (OBR) published its Economic and Fiscal Outlook.

Many of the tax measures announced in the Budget will be legislated for in the Finance Bill. Other proposals will be included in a future Finance Bill.

What happened following the speech on Budget day?

Following the Chancellor’s speech, the Commons agreed to a resolution under the Provisional Collection of Taxes Act 1968, allowing certain tax changes to take place immediately. The Commons authorised immediate changes to Stamp Duty Land Tax and VAT.

After this, the government introduced 108 ways and means resolutions (PDF) which cover the measures due to be included in the Finance Bill. This a procedural step needed before the government can introduce the bill to the Commons. MPs debated the contents of the Budget and the UK’s economic and fiscal outlook under the first of the ways and means resolutions, titled “income tax (charge)”.

The Budget debate took place between 28 October and 3 November, at the end of which the House was asked to vote on each of the resolutions.

The Library has published a summary briefing of the announcements made by the Chancellor at the Budget, and a briefing on key reactions from think tanks, business groups, political parties and other organisations.

Votes on the Budget resolutions

On 3 November, the House considered each of the resolutions the Chancellor tabled after the Budget. Most of them were agreed to ‘on the nod’, meaning the House did not express dissent and no formal vote occurred. Divisions (where each MP casts an individual vote) occurred on seven measures, as outlined below:

What happens next?

The House formally agreed to all the ways and means resolutions. Following this, the Finance Bill 2026-27 was read a first time, meaning it was formally introduced to Parliament. The text of the bill is available on a dedicated page on parliament.uk.

The following table shows which clauses in the Finance Bill correspond to the resolutions on which the House divided on 3 November.

More information about the parliamentary passage of the annual Finance Bill can be found in the Library briefing The Budget and the annual Finance Bill.

Budget measures included in the Finance Bill

Following the Budget, HM Revenue and Customs (HMRC) published the overview of tax legislation and rates (OOTLAR). Chapter 1 of OOTLAR sets out the measures that are included in the Finance Bill.

Some of the measures included in this Finance Bill had already been announced before the Budget. For example, the introduction of a mileage-based charge on electric and hybrid vehicles (the electric vehicle excise duty, eVED) was first announced at Budget 2025.

Budget measures not included in the Finance Bill

Chapter 2 of HMRC’s OOTLAR sets out the Budget measures that are not included in the Finance bill currently before the House.

This includes changes to approved mileage rates, which the government says will introduce via secondary legislation, and changes to the taxation of foreign sovereign investments, which the government plans to make provision for in a future finance bill..

The Treasury Committee

The Treasury Select Committee held several oral evidence sessions to scrutinise the UK’s economic and fiscal forecast ahead of the Budget, and sessions following the Budget to analyse the key decisions and the OBR’s assessment of the economy. The sessions had the following witnesses:

• 14 October 2026: Lord O’Neill of Gatley (Economist and former Commercial Secretary to the Treasury at HM Treasury); Dr Peder Beck-Friis (Senior Vice President and economist at PIMCO, an investment management firm ); and Professor Anna Valero (Former Adviser to Rachel Reeves MP as Chancellor and Director of the Growth Programme at the London School of Economics and Political Science (LSE))
• 20 October 2026: Dr Geoff Tily (Head of Economics at Trades Union Congress); Louise Hellem (Chief Economist at Confederation of British Industry), and David Hale (Government Affairs Director at Federation of Small Businesses)
• 3 November 2026: Ruth Curtice (Chief Executive at Resolution Foundation)’; Helen Miller (Director at Institute for Fiscal Studies); Professor Tony Travers CBE; and Sanjay Raja (UK Chief Economist at Deutsche Bank)
• 4 November 2026: Professor Jonathan Haskel CBE (Chair of the Budget Responsibility Committee at the OBR), Tom Josephs and Professor David Miles CBE (Members of the Budget Responsibility Committee)

The Committee will also hold an oral evidence session on 11 November 2026 with the Chancellor of the Exchequer, John Healey.