MPs are scrutinising the contents of the Finance Bill, which enacts measures announced in the March Budget, in a committee of the whole House.
Chancellor George Osborne revealed in his Budget statement that Britain's economy was expected to grow at a slower rate than previously forecast, but he said his policies would put "fuel in the tank" of the UK economy.
He announced a further cut in corporation tax, with plans to lower the rate to 23% over the next three years. This will be paid for by a rise in the bank levy.
Mr Osborne cut fuel duty by 1p per litre and scrapped Labour's fuel duty escalator - paid for by a £2bn windfall tax on oil companies.
The income tax threshold is to rise to £8,105 in April 2012 - part of the coalition's long-term commitment to increase the income level at which people start paying tax to £10,000.
Labour voted against the bill at second reading, saying the government's policies will "put jobs and growth at risk".
