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| Version 2 | Version 3 |
|---|---|
| Cameron vow to 'stop' tax changes | Cameron vow to 'stop' tax changes |
| (30 minutes later) | |
| Conservative leader David Cameron has vowed to "stop the government in its tracks" and make them think again over the abolition of the 10p income tax. | Conservative leader David Cameron has vowed to "stop the government in its tracks" and make them think again over the abolition of the 10p income tax. |
| Mr Cameron said he would fight in Parliament for compensation for those affected by the "disgraceful" move. | Mr Cameron said he would fight in Parliament for compensation for those affected by the "disgraceful" move. |
| Labour is facing a backbench rebellion over the axing of the 10p rate, as MPs return after a two week break. | Labour is facing a backbench rebellion over the axing of the 10p rate, as MPs return after a two week break. |
| The Treasury has hinted there could be measures to help low earners who are worse off, but not for several months. | The Treasury has hinted there could be measures to help low earners who are worse off, but not for several months. |
| Chancellor Alistair Darling is working on proposals that would offset some of the impact of the tax changes, but they would not come into effect until the autumn pre-Budget report at the earliest. | Chancellor Alistair Darling is working on proposals that would offset some of the impact of the tax changes, but they would not come into effect until the autumn pre-Budget report at the earliest. |
| 'Not good enough' | 'Not good enough' |
| On Sunday, Mr Darling ruled out a U-turn on axing the 10p tax rate, saying it would be "totally irresponsible" to "unravel...or rewrite" the Budget. | On Sunday, Mr Darling ruled out a U-turn on axing the 10p tax rate, saying it would be "totally irresponsible" to "unravel...or rewrite" the Budget. |
| He told the BBC he "would return" in future Budgets to help those hit by the move. | He told the BBC he "would return" in future Budgets to help those hit by the move. |
| EFFECTS OF TAX CHANGES Winners: Most people/ with incomes of £18,000+Under £18,000 but aged 65+ and therefore eligible for higher personal allowancesUnder £18,000 but with young children and therefore eligible for child tax credits Losers: Under £18,000 and ineligible for working tax credits because under 25Retired early and therefore ineligible for higher personal allowancesPart-timer working insufficient hours to qualify for tax credits Different personal circumstances may affect final amountsSource: PWC Tax changes explained | EFFECTS OF TAX CHANGES Winners: Most people/ with incomes of £18,000+Under £18,000 but aged 65+ and therefore eligible for higher personal allowancesUnder £18,000 but with young children and therefore eligible for child tax credits Losers: Under £18,000 and ineligible for working tax credits because under 25Retired early and therefore ineligible for higher personal allowancesPart-timer working insufficient hours to qualify for tax credits Different personal circumstances may affect final amountsSource: PWC Tax changes explained |
| But Mr Cameron said that was "not good enough". | But Mr Cameron said that was "not good enough". |
| He told BBC Breakfast: "I want them to help those people now and I am going to use every power I have got in Parliament to stop them and make them think again." | He told BBC Breakfast: "I want them to help those people now and I am going to use every power I have got in Parliament to stop them and make them think again." |
| He said the abolition of the 10p rate - announced by Gordon Brown last year in his final Budget as chancellor, as he unveiled a 2p cut in the basic rate of income tax - was a ploy to grab headlines. | |
| "For a good headline, for one day's newspapers, he was prepared to attack some of the lowest paid people in our country," said Mr Cameron. | "For a good headline, for one day's newspapers, he was prepared to attack some of the lowest paid people in our country," said Mr Cameron. |
| The Tory leader stopped short of pledging to reinstate the 10p band if his party wins the next election, as he did not know how much money "there would be in the kitty". | The Tory leader stopped short of pledging to reinstate the 10p band if his party wins the next election, as he did not know how much money "there would be in the kitty". |
| But he added: "My chancellor would never introduce a Budget that singled out some of the lowest paid people in Britain and thwacked them with a great big tax charge. That's what Gordon Brown did and he should be thoroughly ashamed of himself." | But he added: "My chancellor would never introduce a Budget that singled out some of the lowest paid people in Britain and thwacked them with a great big tax charge. That's what Gordon Brown did and he should be thoroughly ashamed of himself." |
| The Tory leader said he wanted to work with the government to find a way of helping the 5.3 million low paid workers who have lost out. | The Tory leader said he wanted to work with the government to find a way of helping the 5.3 million low paid workers who have lost out. |
| 'Serious intent' | 'Serious intent' |
| He said the Conservatives would be tabling amendments to the Finance Bill to compensate those affected, through tax credits or changing allowances, which he said would cost about £700m, not the £7bn the government claimed. | He said the Conservatives would be tabling amendments to the Finance Bill to compensate those affected, through tax credits or changing allowances, which he said would cost about £700m, not the £7bn the government claimed. |
| He said the Conservatives would also consider backing an amendment by Labour rebel Frank Field, calling for a compensation package for those affected. | |
| HAVE YOUR SAY This extra tax is going to add more strain on my limited financesJim, GlasgowSend us your comments | HAVE YOUR SAY This extra tax is going to add more strain on my limited financesJim, GlasgowSend us your comments |
| Shadow Chancellor George Osborne, speaking on BBC Radio 4's Today programme, urged critics on all sides of the Commons to join together to force a government U-turn. | Shadow Chancellor George Osborne, speaking on BBC Radio 4's Today programme, urged critics on all sides of the Commons to join together to force a government U-turn. |
| Mr Field, a former Labour minister, has said Treasury promises of "something undefined" in the future do not go far enough and has warned the government it will "get a real feel of just how serious our intent is" as ministers return on Monday. | Mr Field, a former Labour minister, has said Treasury promises of "something undefined" in the future do not go far enough and has warned the government it will "get a real feel of just how serious our intent is" as ministers return on Monday. |
| The changes came into effect this month, but MPs can still vote to reject them when the Finance Bill reaches its committee stage next Monday. | |
| A defeat for the government would be seen as a major blow to Mr Brown's authority, but it is not known how many of the 70 Labour MPs who have publicly criticised the changes will vote for the compensation package expected to be proposed by Mr Field and the Conservatives. | |
| Strength of feeling | |
| Mr Brown has already persuaded one ministerial aide not to quit in protest over the issue and offered reassurances to backbenchers threatening to rebel. | |
| Ministers will be able to gauge the strength of feeling in the Labour ranks later, when MPs gather for the regular meeting of the Parliamentary Labour Party. | |
| The tax change means people who would have paid income tax at the lowest, introductory 10% rate will now have to pay the 20% rate. | The tax change means people who would have paid income tax at the lowest, introductory 10% rate will now have to pay the 20% rate. |
| It is part of a range of measures which came into force this month. Child benefits, state pensions and tax credits have all gone up. | It is part of a range of measures which came into force this month. Child benefits, state pensions and tax credits have all gone up. |
| The Commons Treasury committee has said childless, single people earning under £18,500 will lose up to £232 a year. | The Commons Treasury committee has said childless, single people earning under £18,500 will lose up to £232 a year. |