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| Version 10 | Version 11 |
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| Basic rate taxpayers to get £120 | Basic rate taxpayers to get £120 |
| (10 minutes later) | |
| Chancellor Alistair Darling has put up the personal tax allowance by £600 - meaning anyone earning up to about £41,350 will gain £120 this year. | Chancellor Alistair Darling has put up the personal tax allowance by £600 - meaning anyone earning up to about £41,350 will gain £120 this year. |
| Mr Darling's £2.7bn tax cut for this year came as part of measures to help those hit by the 10p tax rate's axing. | Mr Darling's £2.7bn tax cut for this year came as part of measures to help those hit by the 10p tax rate's axing. |
| He told MPs he would lower the level at which 40p tax is paid - so higher earners do not gain from the change. | |
| Tory George Osborne accused Mr Darling of "cynicism". Lib Dem Vince Cable feared it was a "short-term gimmick". | Tory George Osborne accused Mr Darling of "cynicism". Lib Dem Vince Cable feared it was a "short-term gimmick". |
| "Let no-one be fooled why you are making this statement today - not because you wanted to.... but because this divided, dithering and disintegrating government are panicking in the face of the Crewe and Nantwich by-election," the shadow chancellor said. | "Let no-one be fooled why you are making this statement today - not because you wanted to.... but because this divided, dithering and disintegrating government are panicking in the face of the Crewe and Nantwich by-election," the shadow chancellor said. |
| 'Fairest way' | 'Fairest way' |
| Mr Darling said the change was the "fairest and most effective way" to help those who lost out from the scrapping of the 10p tax rate. | Mr Darling said the change was the "fairest and most effective way" to help those who lost out from the scrapping of the 10p tax rate. |
| For future years our aim is to continue the same level of support for those on lower incomes and I shall bring forward proposals to do this at the Pre-Budget Report Alistair DarlingChancellor In full: Darling statement | For future years our aim is to continue the same level of support for those on lower incomes and I shall bring forward proposals to do this at the Pre-Budget Report Alistair DarlingChancellor In full: Darling statement |
| He said it meant 22 million people on low and middle incomes will gain an additional £120 this year. | He said it meant 22 million people on low and middle incomes will gain an additional £120 this year. |
| The money will come via a £60 lump sum in September pay packets, followed by a £10 monthly increase until the end of the year. | The money will come via a £60 lump sum in September pay packets, followed by a £10 monthly increase until the end of the year. |
| "At a cost of £2.7bn, I will increase the individual personal tax allowances by £600 to £6,035 for this financial year, benefiting all basic rate taxpayers under the age of 65," he said. | "At a cost of £2.7bn, I will increase the individual personal tax allowances by £600 to £6,035 for this financial year, benefiting all basic rate taxpayers under the age of 65," he said. |
| Of the 5.3 million households which had lost out, 4.2m will receive as much or more than they lost when the 10p starting rate of tax was axed. | Of the 5.3 million households which had lost out, 4.2m will receive as much or more than they lost when the 10p starting rate of tax was axed. |
| Field apology | Field apology |
| Mr Darling added: "The remaining 1.1m households will see their loss at least halved. | Mr Darling added: "The remaining 1.1m households will see their loss at least halved. |
| "In other words, 80% of households are fully compensated, with the remaining 20% compensated by at least half. | "In other words, 80% of households are fully compensated, with the remaining 20% compensated by at least half. |
| "And in addition, 600,000 people on low incomes will be taken out of income tax altogether." | "And in addition, 600,000 people on low incomes will be taken out of income tax altogether." |
| Frank Field MP apologises to Gordon Brown | |
| Mr Darling said the measures would be funded through borrowing so as not to take money out of the economy while it was slowing. | Mr Darling said the measures would be funded through borrowing so as not to take money out of the economy while it was slowing. |
| Ex-minister Frank Field, who had led the rebellion against the scrapping of the 10p tax rate, welcomed the announcement and apologised for his remarks about the prime minister in a BBC interview on Sunday. | Ex-minister Frank Field, who had led the rebellion against the scrapping of the 10p tax rate, welcomed the announcement and apologised for his remarks about the prime minister in a BBC interview on Sunday. |
| "Over the weekend I allowed my campaign to become personal. I much regret that and I apologise without reservation," he said. | "Over the weekend I allowed my campaign to become personal. I much regret that and I apologise without reservation," he said. |
| Union welcome | Union welcome |
| Mr Darling replied: "It is not every day that honourable members have the courage to say what you said and it's appreciated." | Mr Darling replied: "It is not every day that honourable members have the courage to say what you said and it's appreciated." |
| Meanwhile, the unions welcomed the chancellor's tax allowance changes. | Meanwhile, the unions welcomed the chancellor's tax allowance changes. |
| Paul Kenny, general secretary of the GMB, said: "The prime minister and chancellor are to be congratulated for listening to the public and changing tack on this." | Paul Kenny, general secretary of the GMB, said: "The prime minister and chancellor are to be congratulated for listening to the public and changing tack on this." |
| Dave Prentis, general secretary of Unison, said: "This is a very welcome move. It shows that the prime minister is listening to the concerns of low paid workers who have lost out by the abolition of the 10p rate." | Dave Prentis, general secretary of Unison, said: "This is a very welcome move. It shows that the prime minister is listening to the concerns of low paid workers who have lost out by the abolition of the 10p rate." |
| Tony Woodley, joint leader of Unite, added: "Reconnecting with Labour's social conscience in this way is a major step towards reconnecting with voters generally." | Tony Woodley, joint leader of Unite, added: "Reconnecting with Labour's social conscience in this way is a major step towards reconnecting with voters generally." |