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Opposition backing rebel on 10p tax rate compensation

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Published Date: 06 July 2009
OPPOSITION parties last night pledged support for a Labour rebel attempt to secure compensation for everyone left worse off by the government's controversial scrapping of the 10p tax rate.
Former Labour minister Frank Field is spearheading an amendment to the Finance Bill which could block the entire Budget unless ministers agreed payments to the worst-off.

And he has warned he has the backing of more than 30 fellow backbenchers as well as the support of both the Tories and Liberal Democrats – raising the prospect of a humiliating government defeat.

The amendment would force the Treasury to come up with detailed compensation proposals.

Gordon Brown did away with the 10p starting rate in his last Budget as chancellor.





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  • Last Updated: 05 July 2009 11:47 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

gus1940,

Edinburgh 06/07/2009 09:39:16
I seem to recall that when Culpability Brown chickened out over the 10p tax rate we were told that all standard rate taxpayers would receive a tax refund.

Am I right? If so I am still waiting.
2

The Former Mr. Angry,

Perth 06/07/2009 12:54:18
I remember the Prime Monster braying that he would bring down the standard rate of tax from 22 to 20p. Positively grinning from ear to ear as he felt he had got one over the Tories.

How he ever thought that abolishing the 10p lower rate to pay for this by overtaxing the poorest paid would somehow not be noticed is utterly beyond me. Bring it on!
3

connaughtboy,

stonehaven 06/07/2009 14:23:12
1 gus

I don't think Brown said that at all. I think he was hoping that we would forget about the vast number of people who he was happy to leave without compensation.

 

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