Government defeats 10p tax rebels
by René Lavanchy
Labour MPs accused the Government of “disgraceful” behaviour this week as it defeated an attempt to compensate an estimated
1.3 million people who have lost out from the abolition of the 10p income tax band.
Labour MP Frank Field had tabled an amendment to the Finance Bill, which translates the Budget into law, which would have forced Chancellor Alistair Darling to ensure the losers were compensated. But the Government won against the Conservatives and Liberal Democrats, along with a significant Labour rebellion.
Peter Kilfoyle, Labour MP for Liverpool Walton and a signatory to the amendment, said: “I think it’s absolutely disastrous to take money away from the poorest sections of society.” He added that Mr Darling had indicated he would resolve the issue and “that has not been done.”
Last year Mr Darling raised the level of personal allowance twice to compensate low earners for the abolition of the 10p band. But the Treasury admits that some low earners are still losing up to £92 a year.
Labour MP David Drew told MPs: “If there are 1.3 million losers, I would have thought that the finest minds in the Treasury would have been able to identify who they were… We have made some of the poorest people poorer. That is unacceptable”. l
by René Lavanchy
Labour MPs accused the Government of “disgraceful” behaviour this week as it defeated an attempt to compensate an estimated 1.3 million people who have lost out from the abolition of the 10p income tax band.
Labour MP Frank Field had tabled an amendment to the Finance Bill, which translates the Budget into law, which would have forced Chancellor Alistair Darling to ensure the losers were compensated. But the Government won against the Conservatives and Liberal Democrats, along with a significant Labour rebellion.
Peter Kilfoyle, Labour MP for Liverpool Walton and a signatory to the amendment, said: “I think it’s absolutely disastrous to take money away from the poorest sections of society.” He added that Mr Darling had indicated he would resolve the issue and “that has not been done.”
Last year Mr Darling raised the level of personal allowance twice to compensate low earners for the abolition of the 10p band. But the Treasury admits that some low earners are still losing up to £92 a year.
Labour MP David Drew told MPs: “If there are 1.3 million losers, I would have thought that the finest minds in the Treasury would have been able to identify who they were… We have made some of the poorest people poorer. That is unacceptable”.
The only place you can read all of Tribune's articles as soon as they are published is in the magazine. To find out more about subscribing from as little as £19, click here.
