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| Brown defends 'U-turn' on 10p tax | Brown defends 'U-turn' on 10p tax |
| (10 minutes later) | |
| The prime minister has defended moves to compensate pensioners, young people and childless people on low incomes who lost out from the 10p tax rate's axing. | The prime minister has defended moves to compensate pensioners, young people and childless people on low incomes who lost out from the 10p tax rate's axing. |
| Gordon Brown said there were better ways of helping them than having a 10p starting tax rate for everyone. | Gordon Brown said there were better ways of helping them than having a 10p starting tax rate for everyone. |
| His U-turn on compensation came amid continued rebellion from Labour MPs. | His U-turn on compensation came amid continued rebellion from Labour MPs. |
| Tory chief David Cameron accused him of "weakness, dithering and indecision". Lib Dem leader Nick Clegg called Mr Brown "increasingly pointless". | |
| The heated exchanges at prime minister's questions came shortly after Chancellor Alistair Darling set out plans to help those on low incomes who may have lost out from the 10p tax rate's axing. | The heated exchanges at prime minister's questions came shortly after Chancellor Alistair Darling set out plans to help those on low incomes who may have lost out from the 10p tax rate's axing. |
| Rebel amendment withdrawn | Rebel amendment withdrawn |
| In what will be seen as a U-turn forced by Labour rebels, the chancellor said he would assess the loss to pensioners aged 60-64 and childless people. | In what will be seen as a U-turn forced by Labour rebels, the chancellor said he would assess the loss to pensioners aged 60-64 and childless people. |
| The compensation deal will be unveiled in the autumn and backdated to April. | The compensation deal will be unveiled in the autumn and backdated to April. |
| Do you have any idea what a pathetic figure you cut today? David Cameron to Gordon Brown In full: Darling's letterCommons: Point-by-point | Do you have any idea what a pathetic figure you cut today? David Cameron to Gordon Brown In full: Darling's letterCommons: Point-by-point |
| Labour's Frank Field responded by withdrawing his amendment backed by 46 Labour MPs calling for compensation. | Labour's Frank Field responded by withdrawing his amendment backed by 46 Labour MPs calling for compensation. |
| "We may, I hope, be marking phase two of Gordon Brown's premiership," he told the BBC, one where he would be "big enough" to admit if something had unintentionally gone wrong. | "We may, I hope, be marking phase two of Gordon Brown's premiership," he told the BBC, one where he would be "big enough" to admit if something had unintentionally gone wrong. |
| At prime minister's questions, Mr Cameron accused Mr Brown of making "panic concessions" in the face of a backbench revolt. | At prime minister's questions, Mr Cameron accused Mr Brown of making "panic concessions" in the face of a backbench revolt. |
| "Are you making these changes because you thought you would lose the vote next week?" he said. | "Are you making these changes because you thought you would lose the vote next week?" he said. |
| Mr Brown replied: "We have said for some time we want to do more to help people on low incomes." | Mr Brown replied: "We have said for some time we want to do more to help people on low incomes." |
| HAVE YOUR SAY Despite being a gainer from these changes, I am appalled that the lowest paid are the losers Helen Higgs Send us your comments | HAVE YOUR SAY Despite being a gainer from these changes, I am appalled that the lowest paid are the losers Helen Higgs Send us your comments |
| But Mr Cameron said: "Do you have any idea what a pathetic figure you cut today? | |
| "You are making these changes because you thought you would lose the vote." | "You are making these changes because you thought you would lose the vote." |
| Quoting a number of Labour figures who have questioned the prime minister's handling of the affair, Mr Cameron said: "Isn't it the case that the Labour Party have finally worked out that they have a loser, not a leader?" | Quoting a number of Labour figures who have questioned the prime minister's handling of the affair, Mr Cameron said: "Isn't it the case that the Labour Party have finally worked out that they have a loser, not a leader?" |
| Mr Brown countered that Mr Cameron's "new found" interest in poverty had "lasted a few seconds". | Mr Brown countered that Mr Cameron's "new found" interest in poverty had "lasted a few seconds". |
| He said the 10p rate was not the best way to boost the incomes of the low paid, who had benefited from improvements in tax credits and the minimum wage under Labour. | He said the 10p rate was not the best way to boost the incomes of the low paid, who had benefited from improvements in tax credits and the minimum wage under Labour. |
| 'Penalising the poor'? | 'Penalising the poor'? |
| "The central issue is we have taken more people out of poverty than any previous government," he told the Commons. | "The central issue is we have taken more people out of poverty than any previous government," he told the Commons. |
| "The choice is very clear - between a Conservative Party that would cut the incomes of the poor and a Labour Party that will increase them." | "The choice is very clear - between a Conservative Party that would cut the incomes of the poor and a Labour Party that will increase them." |
| But in a further attack, Mr Clegg accused Mr Brown of "doing the Tories' job for them" by "penalising the poor". | But in a further attack, Mr Clegg accused Mr Brown of "doing the Tories' job for them" by "penalising the poor". |
| "You used to be a man of principle, but if you won't deliver on poverty, what on earth is the point of this increasingly pointless prime minister?" | "You used to be a man of principle, but if you won't deliver on poverty, what on earth is the point of this increasingly pointless prime minister?" |
| Ex-minister Frank Field explains why he decided to withdraw his amendment | |
| "The point is to have economic growth in this country, that gets more people into work and that could not happen under Liberal policies," replied Mr Brown. | |
| Mr Darling outlined his proposals in a letter to John McFall, the Labour chairman of the Commons Treasury Select Committee. | Mr Darling outlined his proposals in a letter to John McFall, the Labour chairman of the Commons Treasury Select Committee. |
| He said he would be looking at changes to the winter fuel payment system, tax credits and the minimum wage in order to compensate those losing out from the ending of the 10p rate. | He said he would be looking at changes to the winter fuel payment system, tax credits and the minimum wage in order to compensate those losing out from the ending of the 10p rate. |
| In his letter, Mr Darling said the introduction of a "more generous" tax credits system had meant the 10p tax rate, as a means of helping low-income households, had outlived its usefulness. | In his letter, Mr Darling said the introduction of a "more generous" tax credits system had meant the 10p tax rate, as a means of helping low-income households, had outlived its usefulness. |
| "For pensioners aged 60-64, whose incomes tend to be more stable, we have put in hard work to see if those households who have lost out from the removal of the 10p starting rate of income tax can be helped through the mechanism that already exists to pay the Winter Fuel Allowance." | "For pensioners aged 60-64, whose incomes tend to be more stable, we have put in hard work to see if those households who have lost out from the removal of the 10p starting rate of income tax can be helped through the mechanism that already exists to pay the Winter Fuel Allowance." |
| Mr Darling said he had also asked the Low Pay Commission to report on what changes could be made to the minimum wage regime to support young workers. | Mr Darling said he had also asked the Low Pay Commission to report on what changes could be made to the minimum wage regime to support young workers. |