DUP and SDLP to oppose 10p tax

http://news.bbc.co.uk/go/rss/-/1/hi/northern_ireland/7360638.stm

Version 0 of 1.

The DUP and the SDLP have confirmed they intend to vote against the government in next week's crunch debate on the abolition of the 10p tax rate.

The Conservatives, Liberal Democrats and a significant number of Labour backbenchers object to the measure.

Some 39 Labour MPs are said to have signed a motion attacking the tax move - enough to overturn it in a ballot.

The votes of the DUP's nine MPs and the SDLP's three could be crucial in next Monday's Commons debate on the issue.

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 <i>Different personal circumstances may affect final amounts</i>Source: PWC <a class="" href="/1/hi/business/7329006.stm">Tax changes explained</a><a class="" href="/1/hi/uk_politics/7358715.stm">Analysis: Darling's options</a>

Critics of the 10p starter rate of income tax say the change is hurting low earners. The government has promised to look at ways of helping those affected.

DUP MP Gregory Campbell said the government's promise of a review, which came during the Finance Bill's second reading, was not enough for the party to change its position.

He said that unless there were further concessions to compensate those adversely affected by the tax change, all nine DUP MPs would vote against the government.

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.

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.