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Brown admits 'mistakes' over tax | Brown admits 'mistakes' over tax |
(30 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 | 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 these 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 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. |
'Learning' | |
Earlier, Brown told BBC Radio 5 Live: "If I have been accused of not listening in the past, I'm listening and I'm learning all the time. | |
"I think one of the things about this job is you learn all the time from the difficult decisions you have got to make." | |
Asked whether he had a "presentational problem" and was less able to give a "human answer" to a question than predecessor Tony Blair, he said: "My job is to work every day on behalf of the people of this country. | |
"I think people are less interested in the theatre of it and and less interested in the personalities." | |
On Tuesday, Bank of England governor Mervyn King called for an end to excessive City pay packages and blamed the City and its bonus culture for the credit crunch. | |
'Quicker the better' | |
Mr Brown told Today: "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. | "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." | "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. |