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Brown fights backbench tax revolt | Brown fights backbench tax revolt |
(20 minutes later) | |
Gordon Brown has moved to quell a backbench revolt over the abolition of the 10p income tax band amid fears it will hit some low-paid families. | Gordon Brown has moved to quell a backbench revolt over the abolition of the 10p income tax band amid fears it will hit some low-paid families. |
Mr Brown has assured former Labour whip Greg Pope - who tabled a Commons motion calling for action - he will look again at the impact of the changes. | |
Mr Pope's motion - signed by 43 Labour MPs - has now been withdrawn. | Mr Pope's motion - signed by 43 Labour MPs - has now been withdrawn. |
It comes after a junior minister criticised alcohol tax rises, although he later backtracked. | It comes after a junior minister criticised alcohol tax rises, although he later backtracked. |
In his final Budget as Chancellor last year, Mr Brown paid for a 2p cut in the basic rate - to 20p - by abolishing the 10p lower rate. | In his final Budget as Chancellor last year, Mr Brown paid for a 2p cut in the basic rate - to 20p - by abolishing the 10p lower rate. |
'Detrimental impact' | 'Detrimental impact' |
The change, which will affect people's pay from Sunday, comes less than a month ahead of local elections in England and Wales. | |
Most of the five million families households left worse off by the move were compensated by increases in tax credits, but some were not. | |
We should have woken up to it sooner Nia Griffith, Labour MP | |
After withdrawing the motion, Mr Pope told The Guardian: "I have been given assurances by senior ministers that they will look at its impact, especially on pensioners, some of whom are losing more than £200 at a time of rising fuel costs". | |
Mr Brown was confronted by over the issue when he addressed the weekly meeting of the Parliamentary Labour Party on Monday. | |
Former ministerial aide Nia Griffith, who was among those to tackle him, said it did "not look good" to voters. | |
"We should have woken up to it sooner and it would have been easier to do something about it earlier on. It's something we should look at," she said. | |
But the prime minister's spokesman said: "Since 1997, as a result of all the tax and benefit changes that have come into effect, people on low incomes are significantly better off." | |
'Very concerned' | 'Very concerned' |
Labour Leeds North East MP Fabian Hamilton said he feared the change would hit young, single people without families. | |
He said "a number" of backbench MPs who back the government's general direction were "very concerned". | |
Licensing Minister Gerry Sutcliffe sparked a row on Thursday after he told pub trade newspaper The Morning Advertiser he thought alcohol tax rises announced in this year's Budget were wrong. | Licensing Minister Gerry Sutcliffe sparked a row on Thursday after he told pub trade newspaper The Morning Advertiser he thought alcohol tax rises announced in this year's Budget were wrong. |
He said: "I think the industry's right to be upset. We, and I speak as a champion of the pub trade, want the chancellor to change his mind." | |
He later backtracked - after the Tories accused the government of being in "disarray" - saying "my comments do not accurately reflect my views". | He later backtracked - after the Tories accused the government of being in "disarray" - saying "my comments do not accurately reflect my views". |
Home Secretary Jacqui Smith denied the government was having difficulty maintaining discipline in its ranks. | Home Secretary Jacqui Smith denied the government was having difficulty maintaining discipline in its ranks. |