Darling: 10p rate abolition cannot be reversed

Chancellor Alistair Darling has made clear he has no plans to reverse the 10p income tax rate abolition, which came into force last weekend.

Speaking on BBC1 yesterday Mr Darling said he could not "rewind" the Budget but reports this morning suggest he is willing to seek a compromise with those challenging the scrapped rate.

"It simply isn't possible as you go into a financial year to unravel the whole thing and attempt to rewrite it," he said.

The chancellor pointed out there were "millions" of people now on the 20p income tax rate rather than the previous 22p rate.

And he made clear he would seek to take action to help those on low incomes.

"In future Budgets, maybe in future Pre-Budget Reports, I also want to do more because I attach considerable importance to making sure that we help people on lower incomes," he added.