This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7359966.stm
The article has changed 13 times. There is an RSS feed of changes available.
| Version 8 | Version 9 |
|---|---|
| Cabinet urged to win over rebels | Cabinet urged to win over rebels |
| (9 minutes later) | |
| The government will be "working hard" over the next week to head off a Commons defeat over abolishing the 10p income tax band, Downing Street says. | The government will be "working hard" over the next week to head off a Commons defeat over abolishing the 10p income tax band, Downing Street says. |
| The prime minister's spokesman said Chancellor Alistair Darling would meet Labour MPs threatening to rebel. | The prime minister's spokesman said Chancellor Alistair Darling would meet Labour MPs threatening to rebel. |
| Some 39 Labour MPs are said to have signed a motion attacking the tax move - enough to overturn it in a vote. | Some 39 Labour MPs are said to have signed a motion attacking the tax move - enough to overturn it in a vote. |
| They say the change is hurting low earners. The government has promised to look at ways of helping those affected. | They say the change is hurting low earners. The government has promised to look at ways of helping those affected. |
| The abolition of the 10p starter rate of income tax was debated at a cabinet meeting on Tuesday morning. | The abolition of the 10p starter rate of income tax was debated at a cabinet meeting on Tuesday morning. |
| 'Important' | 'Important' |
| The prime minister's spokesman said Chief Whip Geoff Hoon had told colleagues it was "important that all ministers in cabinet explained to those who had concerns what the government's position was". | The prime minister's spokesman said Chief Whip Geoff Hoon had told colleagues it was "important that all ministers in cabinet explained to those who had concerns what the government's position was". |
| But he again refused to say whether Prime Minister Gordon Brown saw the issue as a "confidence vote", simply describing it as "important". | But he again refused to say whether Prime Minister Gordon Brown saw the issue as a "confidence vote", simply describing it as "important". |
| 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 explainedAnalysis: Darling's options | 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 explainedAnalysis: Darling's options |
| The spokesman said the government would be "working hard during the course of the next week to persuade MPs of the merits of its case". | The spokesman said the government would be "working hard during the course of the next week to persuade MPs of the merits of its case". |
| The number of Labour backbenchers who have signed a motion challenging the tax decision is enough to defeat the government if they and all opposition MPs voted that way in next week's Commons vote. | The number of Labour backbenchers who have signed a motion challenging the tax decision is enough to defeat the government if they and all opposition MPs voted that way in next week's Commons vote. |
| The Finance Bill - which enacts this year's Budget - was given a second reading on Monday evening when MPs approved it by 298 votes to 223. | The Finance Bill - which enacts this year's Budget - was given a second reading on Monday evening when MPs approved it by 298 votes to 223. |
| But the government faces a likely rebellion next week when amendments are put forward relating to the abolition of the 10p rate, introduced in last year's Budget. | But the government faces a likely rebellion next week when amendments are put forward relating to the abolition of the 10p rate, introduced in last year's Budget. |
| Frank Field, the Labour MP heading the revolt, said 39 backbenchers had signed his amendment, which seeks compensation for those who lose out from the 10p tax move. | Frank Field, the Labour MP heading the revolt, said 39 backbenchers had signed his amendment, which seeks compensation for those who lose out from the 10p tax move. |
| 'Compensated' | 'Compensated' |
| He said: "The division is not about defeating the government at all. It is about saying the Budget will go through. | He said: "The division is not about defeating the government at all. It is about saying the Budget will go through. |
| "But, as it goes through, we want a commitment from the government that those maybe five million plus people who lose out as a result of the abolition of the 10p [rate] will be compensated for that loss and that that compensation will be backdated to the beginning of the financial year." | "But, as it goes through, we want a commitment from the government that those maybe five million plus people who lose out as a result of the abolition of the 10p [rate] will be compensated for that loss and that that compensation will be backdated to the beginning of the financial year." |
| HAVE YOUR SAYI will benefit from the tax changes but I think they are immoral Christine, Belper Send us your comments | HAVE YOUR SAYI will benefit from the tax changes but I think they are immoral Christine, Belper Send us your comments |
| It is not known how many Labour MPs will vote against the abolition of the 10p rate but more than 70 have signed motions raising concerns about the issue. | It is not known how many Labour MPs will vote against the abolition of the 10p rate but more than 70 have signed motions raising concerns about the issue. |
| Pendle MP Gordon Prentice said: "People who have lost out have got to be fully compensated and they have got to be told when they are going to get their money by the end of next week." | Pendle MP Gordon Prentice said: "People who have lost out have got to be fully compensated and they have got to be told when they are going to get their money by the end of next week." |
| He added: "The fact is that if the Budget goes down, if this key clause goes down, then I don't think the government can survive." | He added: "The fact is that if the Budget goes down, if this key clause goes down, then I don't think the government can survive." |
| Mr Brown tried to head off the rebellion at a Parliamentary Labour Party meeting on Monday by promising to "sort out" the financial impact of the tax change on some of Britain's poorest households. | Mr Brown tried to head off the rebellion at a Parliamentary Labour Party meeting on Monday by promising to "sort out" the financial impact of the tax change on some of Britain's poorest households. |
| Under the tax changes, which came into force this month, low earners who would have paid income tax at the lowest, introductory 10% rate now have to pay the 20% rate. | Under the tax changes, which came into force this month, low earners who would have paid income tax at the lowest, introductory 10% rate now have to pay the 20% rate. |
| Meanwhile, the basic rate of income tax has been lowered from 22p to 20p. | Meanwhile, the basic rate of income tax has been lowered from 22p to 20p. |
| The Commons Treasury committee has said single people with no children earning under £18,500 will lose up to £232 a year as a result of the changes. | The Commons Treasury committee has said single people with no children earning under £18,500 will lose up to £232 a year as a result of the changes. |
| Scrapping the 10p rate was part of a range of measures which took effect earlier this month. Child benefits, state pensions and tax credits have gone up. | Scrapping the 10p rate was part of a range of measures which took effect earlier this month. Child benefits, state pensions and tax credits have gone up. |
| The government says the changes are already benefiting millions of people. | The government says the changes are already benefiting millions of people. |