Cooper: Govt will consult on changes

Chief secretary to the Treasury Yvette Cooper has said those losing out as a result of the scrapping of the 10p income tax rate are still better off under Labour.

Ms Cooper told the Commons during the second reading of the finance bill those now paying the 20p tax band were still around £500 a year better off than they were under the 1997 personal tax system.

"It is hard in any one Budget to help everyone… if we look at Budgets as a whole since 1997, even those who are paying more in this Budget have still benefited significantly overall since 1997," she said.

Ms Cooper and the government are facing growing pressure over the starting rate abolition, which opponents say is likely to leave millions worse off.

She said the government would incorporate concerns about the scrapping into its consultation on the next phase of its efforts on child poverty.

"We want, as always, to do more for those on the lowest income… we will be consulting with stakeholders, with MPs and with different groups on the next phase to tackle inequality, she added.