The Government says it still plans to go ahead with cuts to the money purchase annual allowance and dividend tax nil-rate band despite delays to the policy.
In a House of Commons debate today, MPs are debating a condensed version of the Finance Bill.
The Government had announced it would oppose the clauses in the bill that would have introduced the reduction in the MPAA from £10,000 to £4,000 and a reduction in the dividend tax nil-rate band from £5,000 to £2,000 – which would either delay or drop the measures completely.
However, the Government said in the debate it had not changed course on the policies, and would make the changes “at the earliest opportunity”.
Treasury financial secretary Jane Ellison said: “The Finance Bill is proceeding on the basis of consensus, and at the request of the opposition we are not proceeding with a number of clauses in this bill.
“As we know, these changes make a significant contribution to the public finances and the Government will legislate for the remaining provisions at the earliest opportunity at the start of the new Parliament.”
Alluding to the snap general election, Ellison said some measures would be delayed until the new Parliament “in light of the pressures that now apply”.
On the plus side, the #MPAA fiasco does show the capability (if not desire) to cancel the LISA and scrap the LTA
— Greg Kingston (@GregKingston) April 25, 2017
Labour MP Peter Dowd said he “fully concurred” with the need for consensus on the bill and that the party had been preparing to work through a condensed bill “for several weeks”.
Dowd also suggested the snap election was behind the delays to some parts of the bill.
He said: “The Prime Minister’s announcement at Number 10 and of course the subsequent vote that succeeded means we don’t have sufficient time in this Parliament to give the full bill the proper parliamentary oversight it requires and deserves.
“It’s clear obviously [people] were unaware of the Prime Minister’s plans for a snap election, otherwise they wouldn’t have introduced the longest Finance Bill.”