This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7374860.stm

The article has changed 14 times. There is an RSS feed of changes available.

Version 1 Version 2
Brown admits 'mistakes' over tax Brown admits 'mistakes' over tax
(40 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.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''Specific problem'
Mr Brown announced the abolition of the 10p starter rate of income tax in his last Budget as chancellor, last year.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. 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".
We've had excessive risk-taking Gordon Brown on banks
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."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." 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 thess 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".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. Ministers saw off a potential Labour backbench revolt by pledging concessions last week for those hit by the 10p tax rate abolition.
These are to be outlined over the next few months.These are to be outlined over the next few months.
'Nobody quite knew'
Mr Brown was also asked about Bank of England governor Mervyn King's call for an end to excessive City pay packages and his comment that the City and its bonus culture were to blame for the credit crunch.
Mr Brown said: "We've had excessive risk-taking and at the same time we've now got risk aversion.
"The real problem is that because there was a lack of disclosure, because there was all these off-balance-sheet activities nobody quite knew what was happening.
"It was wrong to have off-balance sheet activities and it's right that all these losses be declared. The quicker that is done the better for the financial system."
Asked whether a change in government was necessary from time to time, Mr Brown replied: "I think governments need to refresh themselves."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.He was making the "right long-term decisions", he added.