Taxation (Energy and Vehicles) Bill – in the House of Commons at 3:30 pm on 1 July 2026.
Votes in this debate
“(1) The Treasury must review the impact of the temporary vehicle excise duty (VED) rates for goods vehicles provided for under section 3.
(2) The report must, in particular, assess—
(a) the impact of the temporary VED rates on—
(i) UK public finances, and
(ii) the competitiveness of the UK freight and logistics sector;
(b) the effects of the temporary VED rates on operating costs for goods vehicle operators;
(c) the contribution of the temporary VED rates to efficient supply chains across the United Kingdom; and
(d) whether it remains appropriate for the temporary VED rates on goods vehicles to continue.
(3) The Chancellor of the Exchequer must lay a report of the review before Parliament before
This new clause would require the Treasury to review the impact of temporary vehicle excise duty rates for goods vehicles and to report to Parliament by
Brought up, and read the First time.
Question put, That the clause be read a Second time.
Division number 48
Taxation (Energy and Vehicles) Bill Committee: New Clause 5
Dan Tomlinson
The Exchequer Secretary
4:12,
1 July 2026
I beg to move, That the Bill be now read the Third time.
I am grateful for the discussion that we have had today on a Bill that responds directly to the pressures placed on people and businesses across the UK by the conflict in the middle east. In respect of energy, rising gas prices have driven up electricity prices, and non-gas generators stand to benefit significantly as a result. The electricity generator levy ensures that a share of this exceptional revenue is redirected to the public, and we are increasing that share by raising the rate of the levy from 45% to 55%. As for fuel costs, we are uprating mileage rates for the first time in 15 years, providing relief for millions. We are also introducing a 12-month vehicle excise duty holiday for the Majority of heavy goods vehicles, supporting those who drive for work and the transport of goods across the UK. Those three measures are the right measures at the right time, and I commend the Bill to the House.
James Wild
Shadow Exchequer Secretary (Treasury), Opposition Whip (Commons)
4:13,
1 July 2026
This has indeed been fast-tracked legislation, at 90 minutes—no need for extra time here. [Laughter.] There is more.
The Government have sought to move rapidly to impose a higher levy on generators, but the measures designed to decouple electricity and gas prices have not been given the same priority. Motorists using their cars for work will welcome the increased mileage rates, but those driving more than 10,000 miles a year will be puzzled that those rates remain unchanged. Reducing the costs on those who keep goods moving around our country will make a difference, but that has to be seen as only part of the ledger and set against higher employment and higher taxes.
I congratulate the Minister on so ably shepherding the Bill through this afternoon. I am sure that he will have many more Bills to take through as the Exchequer Secretary to the Treasury, but this may well be the last piece of legislation to be granted Royal Assent before the Prime Minister shuffles off the stage. For this Bill and this Prime Minister, they think it’s all over—it is now.
Daisy Cooper
Deputy Leader, Liberal Democrats, Liberal Democrat Spokesperson (Treasury)
4:15,
1 July 2026
We Liberal Democrats support the Bill and the three measures in it. We tabled our three new clauses in Committee, and I was grateful that the Minister gave assurances from the Dispatch Box that he would look at every single opportunity to ensure that care workers are aware of the ways in which they can benefit from these measures. We are happy to see the Bill fast-tracked, but I believe the Minister said that he would look for opportunities to come back and report to this House—if not at the Budget, perhaps before—on how that is going. I am glad that is on the record. I hope that care agencies see that on the record and act on it to inform their staff, but I was pleased to hear the Minister say that. I will try to hold his feet to the fire so that we do everything we can to ensure that care workers are aware that they will benefit from this measure.
Dan Tomlinson
The Exchequer Secretary
4:16,
1 July 2026
I ask that the House gives the Bill its Third Reading.
Question put and agreed to.
Bill accordingly read the Third time and passed.
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A parliamentary bill is divided into sections called clauses.
Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.
During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.
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