10p-tax row refuses to die

Labour MPs are bringing the 10p-tax rate row to the centre of the political agenda again today. Seventeen MPs are said to be backing a proposal by David Taylor calling for compensation for the 1.1 million people left out of Alistair Darling’s compensation package for those affected by the 10p tax rate debacle. The push […]

Darling tight-lipped on £2.7bn future

Alistair Darling says MPs will have to wait until this autumn before finding out whether the £2.7 billion stimulus package will be repeated in 2009. The chancellor announced the package, which increased the personal allowance of basic rate taxpayers by £600, last month. He had been forced to back down over the need for compensation […]

Income tax compensation plans unveiled

Alistair Darling attempted to draw a line under the 10p controversy today by announcing a series of financial packages intended to help those affected by income tax rate changes. Speaking confidently in a packed House of Commons, Mr Darling said tax credits would fully compensate 80 per cent of those affected while the 20 per […]

Brown admits income tax “mistakes”

Mistakes were made in the process of abolishing the 10p starting rate of income tax, Gordon Brown has admitted. His comments come after last week’s U-turn on the issue of compensation for those left worse off as a result of the income tax changes, following a threatened Labour rebellion led by backbench MP Frank Field. […]

Cameron vows to ‘stand up for poor’

Conservative leader David Cameron has told the BBC he wants to “stand up” for the low-paid who he claims have been failed by the government. Gordon Brown scrapped the 10p tax rate this week despite fierce opposition from some Labour MPs. In a series of emergency tax measures, the prime minister announced that pensioners under […]

Budget 2008: Darling: I will not reverse abandoning of 10p income tax band

Alistair Darling has dismissed calls to reverse the controversial decision to abandon the 10p income tax band. Some 70 Labour MPs and at least six ministerial aides are believed to be unhappy at the move to abolish the 10p tax rate, claiming it will hit Britain’s poorest hard. But speaking on BBC1’s Andrew Marr show, […]

Budget 2008: David Miliband urges Labour unity as tax anger grows

Foreign secretary David Miliband has called for Labour MPs to support Gordon Brown in the wake of growing anger over the abandoning of the 10p income tax band. The prime minister has faced strong opposition within his party towards plans to abolish the lowest rate of income tax. Labour party aides have said it would […]

Brown struggling to shake off income tax unrest

The abolition of the 10p introductory income tax rate is threatening Gordon Brown’s authority as Labour MPs echo opposition criticism on the issue. Mr Brown returns from his three-day trip to the US to criticism from ministerial aides, who are supposed to tow the line when it comes to government policy. Mr Brown announced the […]

Fierce criticism of Brown’s tax reform continues

The plans by prime minister Gordon Brown to abolish the 10p tax band are continuing to receive wide-spread criticism from Labour and opposition MPs. A number of Labour MPs have criticised the move, claiming it would affect those on low income the most. The Liberal Democrats have issued a similar warning, saying that up to […]

Budget 2008: Brown firm amid tax rebellion

Government ministers have moved to defend the abolition of the 10p tax rate as Gordon Brown refuses to concede a U-turn that could stave off a Labour rebellion. Backbench MPs are concerned that the abolition of the 10p tax bracket will adversely affect 5.3 million low earners. Criticisms of the tax cut, announced in last […]