Taxation (Energy and Vehicles) Bill Committee: New Clause 4

Parliament defeated New Clause 4 to the Taxation (Energy and Vehicles) Bill on 1 July 2026, by 282 votes to 173. The clause had been tabled by Conservative MPs and sought to require the Treasury to review the impact of raising the electricity generator levy to 55% and to report findings to Parliament before 31 March 2028, including consideration of whether the levy should continue at that rate. The electricity generator levy was originally introduced as a temporary windfall tax on electricity generators during a period of exceptional market conditions. The Government is now raising the rate to 55%, and the new clause would have imposed a formal parliamentary review before that change beds in. Defeating it means no statutory obligation on ministers to assess the levy's impact or revisit its continuation on a set timetable, though the Government noted that the Office for Budget Responsibility will scrutinise the costing and that taxes are reviewed ahead of each fiscal event. The vote divided sharply along party lines. Every Labour and Labour and Co-operative MP who voted opposed the clause, providing the 282 noes. All 96 voting Conservatives, all 56 voting Liberal Democrats, and smaller parties including Reform UK, Plaid Cymru, the SNP, the DUP and Restore Britain backed it, together accounting for the 173 ayes. No cross-party defections were recorded. The result followed a similar pattern on the same day, when New Clause 2 (on mileage rates for care workers) fell 281 to 80, and New Clause 5 (on the HGV vehicle excise duty holiday) fell 308 to 177.