Government sets out two-stage finance bill

The Government has announced a surprise two-stage approach to finance legislation. Technical measures set out by chancellor George Osborne in his emergency Budget statement and those remaining from former chancellor Alistair Darling's pre-election statement will be separated from key tax policies that will be given priority.

The Treasury has published an initial Finance Bill enacting key tax measures at the heart of Osborne's package "to cut the unprecedented deficit, deliver fairness and promote enterprise" which it is intended to push through parliament as quickly as possible this

summer.

It will be followed by a further bill in the autumn which "will introduce minor, technical measures announced by the previous government".

It will be published in draft later this month [July] "to allow thorough pre-legislative scrutiny".

Exchequer secretary David Gauke said: "The government's inheritance was one of debt and unsustainable spending. We are taking the decisive action needed to pay for the past and plan for the future. That is why today we are legislating the key measures at the heart of our comprehensive five-year plan to put the British economy back on track."

He made no comment on whether this year's arrangements are a one-off or will set a precedent for the future, with an annual "Budget bill" which has to be passed reasonably swiftly to enact major tax changes, followed by a more detailed technical bill when necessary in draft, with consultations before Parliamentary approval is sought. It is a reform many have argued for to remove the pressure to rush through technical changes which require more consideration.

The emergency measure was published earlier today [Thursday] together with detailed "lobby notes" on clauses and schedules which are available on the Treasury website together with more detailed notes.

Meanwhile a handful of rebel Liberal Democrat MPs have been gearing up to ta ble amendments to the Finance Bill in a bid to improve "fairness" next week after the main debate approving the budget legislation in principle on Tuesday [7 July].

Party whips are fearful a small number of vociferous dissidents unhappy with the coalition will seek to use detailed line-by-line debates in the Commons itself, due to start on 12 July, and later in committee , if any of them secure places on it, to push for "improvements" largely in the area of helping poorer families. They will also have an opportunity to act, possibly in concert with Labour, when the bill reaches report stage.