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| Version 0 | Version 1 |
|---|---|
| Brown admits 'mistakes' over tax | Brown admits 'mistakes' over tax |
| (21 minutes later) | |
| Prime Minister Gordon Brown has admitted making "mistakes" in abolishing the 10p rate of income tax. | Prime Minister Gordon Brown has admitted making "mistakes" in abolishing the 10p rate of income tax. |
| He told the BBC the government "didn't cover as well as we should have" losses to low earners without children and pensioners aged 60 to 64. | |
| But Mr Brown said he was "listening" and "learning" as prime minister and that problems were "being dealt with". | But Mr Brown said he was "listening" and "learning" as prime minister and that problems were "being dealt with". |
| The government announced last week it would compensate those affected by the change, amid pressure from Labour MPs. | The government announced last week it would compensate those affected by the change, amid pressure from Labour MPs. |
| 'Specific problem' | |
| Mr Brown announced the abolition of the 10p starter rate of income tax in his last Budget as chancellor, last year. | |
| He told BBC Radio 4's Today programme this had helped the poorest in society most "because 85% of the benefits [of the old rate] went to the highest earners. | |
| However, he added: "We made two mistakes. We didn't cover as well as we should that group of low-paid workers who don't get the working tax credits and we weren't able to help the 60 to 64-year-olds who didn't get the pensioner's tax allowance." | |
| Mr Brown also said: "The problem was quite specific... We had dealt with this very, very major tax reform. We hadn't done enough for this two smaller groups." | |
| In the last year, the prime minister said, rising fuel and food prices meant "the context in which we are having to make decisions now is quite different". | |
| Ministers saw off a potential Labour backbench revolt by pledging concessions last week for those hit by the the 10p tax rate abolition. | |
| These are to be outlined over the next few months. | |
| Asked whether a change in government was necessary from time to time, Mr Brown replied: "I think governments need to refresh themselves." | |
| He was making the "right long-term decisions", he added. |