Prudence calls back - "Brown facing fresh 10p tax fight"
When Prudence calls back - it's prudent to listen.
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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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