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| Labour tax rebel MPs rise to 46 | |
| (about 1 hour later) | |
| Forty-six Labour MPs have signed ex minister Frank Field's amendment calling for compensation for those hit by the abolition of the 10p tax rate. | |
| This comes despite efforts by Gordon Brown and Chancellor Alistair Darling to win over potential rebels. | |
| If the 46 Labour rebels and opposition parties backed Mr Field in a vote the government would be defeated. | |
| Mr Field wants £1.2bn in unclaimed working tax credits to be used to help people hit by the end of the 10p rate. | |
| Mr Darling has pledged to answer concerns about the abolition of the 10p rate "within this financial year". | |
| However, that promise has failed to abate the discontent among Labour supporters for Mr Field's amendment, whose numbers have grown from 39 overnight. | |
| 'Delivery important' | |
| Mr Field, a former welfare reform minister, told The Guardian: "We need to send a clear message to low-income voters that they are going to be recompensed this year for the increased taxes they paid. | |
| "There is unclaimed £1.2bn in working tax credit, and Brown set up that credit specifically to help workers on lowish incomes. | "There is unclaimed £1.2bn in working tax credit, and Brown set up that credit specifically to help workers on lowish incomes. |
| "Why can't those monies be used to finance the compensation package for this year?" | "Why can't those monies be used to finance the compensation package for this year?" |
| EFFECTS OF TAX CHANGES Winners: Most people with incomes of £17,500+Under £17,500 but aged 65+ and therefore eligible for higher personal allowancesUnder £17,500 but with young children and therefore eligible for child tax credits Losers: Under £17,500 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 £17,500+Under £17,500 but aged 65+ and therefore eligible for higher personal allowancesUnder £17,500 but with young children and therefore eligible for child tax credits Losers: Under £17,500 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 |
| Mr Field said his amendment was not intended to destabilise the government. | |
| "I feel sick when I vote against the government, but I think it is very important that the low paid know we are going to deliver." | "I feel sick when I vote against the government, but I think it is very important that the low paid know we are going to deliver." |
| At a meeting on Tuesday, Mr Darling promised Labour MPs that action to compensate low-income households would take effect within this financial year. | At a meeting on Tuesday, Mr Darling promised Labour MPs that action to compensate low-income households would take effect within this financial year. |
| Some MPs said they thought Mr Darling might consider backdating compensation for low earners who have lost money. | Some MPs said they thought Mr Darling might consider backdating compensation for low earners who have lost money. |
| The commitment will be seen as an attempt at quelling a rebellion that could see the government lose a Commons vote on the Finance Bill. | The commitment will be seen as an attempt at quelling a rebellion that could see the government lose a Commons vote on the Finance Bill. |
| But Treasury sources said all options were on the table and no details had been decided. After the meeting, Mr Darling said it had been "very useful". | But Treasury sources said all options were on the table and no details had been decided. After the meeting, Mr Darling said it had been "very useful". |
| Meanwhile, Treasury committee MPs are to hold a short inquiry into the effect of axing the 10p income tax rate. | Meanwhile, Treasury committee MPs are to hold a short inquiry into the effect of axing the 10p income tax rate. |
| While I have signed Frank Field's amendment, I am very hopeful it won't be needed after last night's excellent meeting Ann CryerLabour MP | While I have signed Frank Field's amendment, I am very hopeful it won't be needed after last night's excellent meeting Ann CryerLabour MP |
| The cross-party committee, chaired by Labour MP John McFall, intends to complete its probe, including recommendations for action, before the Bill completes its final passage through the Commons, probably no earlier than June. | The cross-party committee, chaired by Labour MP John McFall, intends to complete its probe, including recommendations for action, before the Bill completes its final passage through the Commons, probably no earlier than June. |
| BBC political editor Nick Robinson said this could delay any rebellion by Labour MPs during next week's vote on Mr Field's amendment. | BBC political editor Nick Robinson said this could delay any rebellion by Labour MPs during next week's vote on Mr Field's amendment. |
| It would also mean any Commons embarrassment came after next week's local elections in England and Wales. | It would also mean any Commons embarrassment came after next week's local elections in England and Wales. |
| Downing Street said the government was "working hard during the course of the next week to persuade MPs of the merits of its case", which was announced in Mr Brown's final Budget as chancellor last year and comes into effect this month. | Downing Street said the government was "working hard during the course of the next week to persuade MPs of the merits of its case", which was announced in Mr Brown's final Budget as chancellor last year and comes into effect this month. |
| And there could be signs that the charm offensive, which began with an appeal by the prime minister at a meeting of the Parliamentary Labour Party on Monday, may be working. | And there could be signs that the charm offensive, which began with an appeal by the prime minister at a meeting of the Parliamentary Labour Party on Monday, may be working. |
| Listening? | Listening? |
| Labour MP Ann Cryer said: "While I have signed Frank Field's amendment, I am very hopeful it won't be needed after last night's excellent meeting. | Labour MP Ann Cryer said: "While I have signed Frank Field's amendment, I am very hopeful it won't be needed after last night's excellent meeting. |
| "I got the strong impression that the prime minister and chancellor were really listening to the concerns raised by MPs." | "I got the strong impression that the prime minister and chancellor were really listening to the concerns raised by MPs." |
| 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 |
| 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 could 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 could 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. |
| Lib Dem leader Nick Clegg told the BBC the abolition of the 10p rate had caused "absolute uproar amongst the poorest, most vulnerable families, who are feeling overstretched already". | Lib Dem leader Nick Clegg told the BBC the abolition of the 10p rate had caused "absolute uproar amongst the poorest, most vulnerable families, who are feeling overstretched already". |
| 'Think again' | 'Think again' |
| Asked whether his party would support Mr Field's amendment, he said: "We will support any amendments and we might well put forward our own amendments which will mitigate, reverse the damage done to those poorest individuals who are being hit by this measure." | Asked whether his party would support Mr Field's amendment, he said: "We will support any amendments and we might well put forward our own amendments which will mitigate, reverse the damage done to those poorest individuals who are being hit by this measure." |
| Conservative leader David Cameron has pledged to "stop the government in its tracks" and make them "think again" over abolishing the 10p rate. | Conservative leader David Cameron has pledged to "stop the government in its tracks" and make them "think again" over abolishing the 10p rate. |
| The changes, which came into force this month, abolished the 10% starter rate of income tax, but lowered the basic rate from 22% to 20%. | The changes, which came into force this month, abolished the 10% starter rate of income tax, but lowered the basic rate from 22% to 20%. |
| The 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 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. |
| Ministers say rises in child benefits, state pensions and tax credits have gone up, benefiting millions of people. | Ministers say rises in child benefits, state pensions and tax credits have gone up, benefiting millions of people. |