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Brown defends 'U-turn' on 10p tax Brown denies being 'pushed about'
(about 3 hours 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 the decision to compensate people who have lost money from tax changes, saying he was not "pushed about" by Labour MPs.
Gordon Brown said there were better ways of helping them than having a 10p starting tax rate for everyone. Gordon Brown told the BBC it was important to "judge what is right at every point".
His U-turn on compensation came amid continued rebellion from Labour MPs. Earlier, facing a possible Labour rebellion over the abolition of the 10p income tax rate, the government promised more more help to low earners.
Tory chief David Cameron accused him of "weakness, dithering and indecision". Lib Dem leader Nick Clegg called Mr Brown "increasingly pointless". The Conservatives accused Mr Brown of "weakness, dithering and indecision".
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. Backdated
Rebel amendment withdrawn In what has been widely seen as a U-turn forced by Labour rebels, Chancellor Alistair Darling said he would assess the loss to pensioners aged 60 to 64 and childless people from the abolition of the 10p rate.
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-pointSketch: John Pienaar's verdictDo you have any idea what a pathetic figure you cut today? David Cameron to Gordon Brown In full: Darling's letterCommons: Point-by-pointSketch: John Pienaar's verdict
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. Mr Brown told the BBC political editor Nick Robinson: "I don't think I've been pushed about at all.
At prime minister's questions, Mr Cameron accused Mr Brown of making "panic concessions" in the face of a backbench revolt. "What I've done is look and make the right long-term decisions."
"Are you making these changes because you thought you would lose the vote next week?" he said. He added: "My whole mission in politics is to do what I can to help people... It means we have got to judge things right at every point."
Mr Brown replied: "We have said for some time we want to do more to help people on low incomes." Mr Brown made clear that the cost of the compensation package would be substantially lower than £1bn and he accepted that not all losers from the abolition of the 10p tax rate would benefit.
At prime minister's questions, Tory leader David Cameron accused Mr Brown of making "panic concessions" in the face of a possible backbench revolt next week.
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 commentsHAVE 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? He 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". In a further attack, Liberal Democrat leader Nick 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 amendmentEx-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."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.