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date: Sun, 5 Jul 2009 06:47:58 +0100,    group: uk.politics.parliament        back       
Prudence calls back - "Brown facing fresh 10p tax fight"   
When Prudence calls back - it's prudent to listen.
_____________________________________

Brown facing fresh 10p tax fight

Gordon Brown may face a fresh backbench revolt over the scrapping 
of the 10p bottom rate of income tax.

A group of Labour MPs - led by Frank Field and Greg Pope - are threatening
 to block this year's entire Budget in a vote in the Commons on Tuesday. They say their amendment is also being supported by Tory leader David Cameron 
and the Liberal Democrats. 

Rebels say millions of people on low incomes are worse off since the change. 

'Toxic'

The decision to abolish the 10% starter rate of income tax was included in 
Gordon Brown's last Budget as Chancellor. 

It came into force in April last year - alongside a reduction in the basic rate 
of tax from 22% to 20%. 

The government headed off an earlier revolt last year - by promising 
compensation for those who lost out by the decision to scrap the lowest 
tax band, including larger personal tax allowances. 

But the rebels say that at least 1.3 million people are still worse off by more 
than £1 a week, with more out of pocket by less than £1 a week. 

"Although the amounts are small, the principle of poorer people losing 
out remains toxic," says BBC political correspondent Reeta Chakrabarti. 

The rebels claim as many as 30 Labour MPs could vote against the government. 

They say if their motion is passed ministers will have to produce proposals to ensure 
no person was worse off before the Commons would grant the Government powers
 to continue levying income tax.

http://news.bbc.co.uk/1/hi/uk_politics/8134646.stm
date: Sun, 5 Jul 2009 06:47:58 +0100   author:   McIntyre

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