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Taxation (Energy and Vehicles) Bill 2026-27

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Taxation (Energy and Vehicles) Bill 2026-27 (24)

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Second reading. Agreed to on question. Bill committed to a Committee of the Whole House.

Lead member
Rachel Blake; Dan Tomlinson
Answering member
James Wild
Department
Treasury
Type
Debates on bills
Date
1 July 2026
Reference
788 cc948-956
House
House of Commons

I beg to move, That the Bill be now read a Second time.

The conflict in the middle east has left British families and businesses exposed to volatile gas prices, which has made things more expensive for those who drive for work, including care workers. Even though much of the country’s...

Member
Rachel Blake (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c948
House
House of Commons

My hon. Friend is making an excellent speech. This is fantastic news for my constituents, my farmers and my businesses. Does she welcome the statement from the End Fuel Poverty Coalition, which said that increasing the rates of approved mileage allowance payments is absolutely the right thing to do right...

Member
Matt Western (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c948
House
House of Commons

I thank my hon. Friend for his thoughtful intervention. I absolutely agree that this will make a real difference to those workers who drive for their work. This is a long overdue measure, and I am very happy to put the Bill forward today.

The proposals represent the largest ever increase...

Member
Rachel Blake (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c949
House
House of Commons

I know that this legislation is fast-tracked, but the Minister did rattle through very rapidly. I will seek to follow her lead as best I can.

It is a pleasure to debate the Bill on Second Reading and its measures on increasing the electricity generator levy, increasing the mileage allowance and...

Member
James Wild (Conservative)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c949
House
House of Commons

The shadow Minister speaks of the need for ambition, but does he not agree that there is little that is more ambitious than breaking the link between the cost of gas and electricity, which so many of our constituents have called on us to do in recent months?

Member
Noah Law (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c950
House
House of Commons

I agree with the hon. Gentleman on that point, which I will come to shortly. I just note that when the Secretary of State for Energy Security and Net Zero had the opportunity to really break that link, he backed away from doing so. This measure does so in a...

Member
James Wild (Conservative)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 cc950-2
House
House of Commons

We Liberal Democrats support all three measures in the Bill. We recognise that the electricity generator levy is intended to encourage legacy renewable generators to move away from volatile wholesale electricity prices and on to contracts for difference.

As the only party to put in its manifesto a commitment to decoupling...

Member
Daisy Cooper (Liberal Democrat)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 cc952-3
House
House of Commons

Today’s debate is progressing rapidly—so rapidly, in fact, that I am yet to turn to the speech in my folder. It is a privilege to close this rapid debate on behalf of the Government, and I thank Members for their contributions, as well as the Economic Secretary to the Treasury...

Member
Dan Tomlinson (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c953
House
House of Commons

Given that the levy kicks in from today and the Minister said that the consultation will be published before the end of the year, six months henceforth, and then legislation will have to go through, are the Government considering any backdating provision? If a company generator wanted to go into...

Member
James Wild (Conservative)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c954
House
House of Commons

No. If prices are slightly above the threshold set in the electricity generator levy, as they are at the moment, I believe, those taxes will be due now, from 1 July, whether or not businesses make decisions down the line after the consultation, after engagement and after the detail of...

Member
Dan Tomlinson (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 cc954-5
House
House of Commons

I think the Minister might be coming to a conclusion, and I would not want him to miss the opportunity to refer to the House of Lords Constitution Committee and the presumption that fast-tracked legislation should include sunset clauses. Could he explain why the Government have chosen not to follow...

Member
James Wild (Conservative)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c955
House
House of Commons

There is a very sensible policy rationale when it comes to the electricity generator levy, which I think is the clause the hon. Member is referring to. We want to ensure that the ending of the EGL and the future decisions made on it are made in the light of...

Member
Dan Tomlinson (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c955
House
House of Commons

Committee stage. Clause 1 considered with clauses 2 to 4. Clauses 1 to 4 agreed to. New clause 2 negatived on division (80 to 281). New clause 4 negatived on division (173 to 282). New clause 5 negatived on division (177 to 308). Bill reported without amendment. Third reading. Agreed...

Lead member
Dan Tomlinson
Answering member
James Wild
Department
Treasury
Type
Committee of the Whole House (HC); Debates on bills
Date
1 July 2026
Reference
788 cc956-977
House
House of Commons

I will open this debate in Committee of the whole House by reminding the House—though I am sure Members know what is in this Bill—of the purpose of the Bill, which is to respond to increases in costs for families and businesses in the UK because of the conflict in...

Member
Dan Tomlinson (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 cc957-9
House
House of Commons

I will be speaking primarily to new clauses 4 and 5 tabled in my name and those of my hon. Friends, specifically related to the electricity generator levy and the HGV vehicle excise duty holiday.

I have to say to the Exchequer Secretary that it is quite nice to see a...

Member
James Wild (Conservative)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 cc959-961
House
House of Commons

I rise to speak to new clauses 1 to 3. New clause 1 would require the Chancellor to publish a report on the use of additional receipts arising from the increase in the electricity generator levy from 45% to 55%. New clause 2 would require the Chancellor to review the...

Member
Daisy Cooper (Liberal Democrat)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 cc961-2
House
House of Commons

I thank the shadow Exchequer Secretary, the hon. Member for North West Norfolk (James Wild), and the hon. Member for St Albans (Daisy Cooper), for their scrutiny and attention to the measures contained in this short Bill. I am proud that, as the shadow Exchequer Secretary said, we removed three...

Member
Dan Tomlinson (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 cc962-3
House
House of Commons

I am happy to clarify that for the Minister. My point was rather that if the Government are to introduce a higher levy rate on the basis that it will incentivise people to move into wholesale contracts for difference, it might be as well to have the policy for those...

Member
James Wild (Conservative)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 c963
House
House of Commons

I thank the shadow Exchequer Secretary for that. As I said, we are consulting on that policy before the end of the year. It was the Chancellor’s and this Government’s decision that the better thing to do for the country—for businesses and for households—was to respond to the conflict in...

Member
Dan Tomlinson (Labour)
Type
Proceeding contributions
Date
1 July 2026
Reference
788 cc963-4
House
House of Commons