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| Version 6 | Version 7 |
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| Ministers face new 10p tax fight | Ministers face new 10p tax fight |
| (20 minutes later) | |
| The government is facing a fresh challenge from Labour MPs over its abolition of the 10p income tax band. | The government is facing a fresh challenge from Labour MPs over its abolition of the 10p income tax band. |
| In May, Chancellor Alistair Darling quelled a possible backbench rebellion when he announced a £2.7bn compensation package for those who lost out. | In May, Chancellor Alistair Darling quelled a possible backbench rebellion when he announced a £2.7bn compensation package for those who lost out. |
| But 21 MPs have signed amendments to the Finance Bill by two Labour MPs to help 1.1 million people not covered. | But 21 MPs have signed amendments to the Finance Bill by two Labour MPs to help 1.1 million people not covered. |
| The Tories are calling for ministers to bring forward their proposals to help the 1.1m, to be voted on by Parliament. | The Tories are calling for ministers to bring forward their proposals to help the 1.1m, to be voted on by Parliament. |
| The amendments, by two Labour MPs, are not likely to pass but could get enough support to embarrass the government. | The amendments, by two Labour MPs, are not likely to pass but could get enough support to embarrass the government. |
| 'Blunderbuss' approach | 'Blunderbuss' approach |
| It is unclear whether Speaker Michael Martin will call the amendments, tabled by North-West Leicestershire MP David Taylor and Birmingham Selly Oak MP Lynne Jones, for debate on Tuesday. | It is unclear whether Speaker Michael Martin will call the amendments, tabled by North-West Leicestershire MP David Taylor and Birmingham Selly Oak MP Lynne Jones, for debate on Tuesday. |
| Mr Taylor's amendment - signed by 21 MPs, 19 of them Labour - would introduce a taper mechanism into the £600 increase in personal allowances for income tax offered by the chancellor. | Mr Taylor's amendment - signed by 21 MPs, 19 of them Labour - would introduce a taper mechanism into the £600 increase in personal allowances for income tax offered by the chancellor. |
| This would ensure that all of those who lost out from the 10p change were compensated, it was added. | This would ensure that all of those who lost out from the 10p change were compensated, it was added. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| Dr Jones's plan would let people choose whether to opt in or out of the 10p rate. | Dr Jones's plan would let people choose whether to opt in or out of the 10p rate. |
| Mr Taylor told BBC Radio 4's Today programme that the compensation package announced by Mr Darling on 13 May had been a "blunderbuss" approach, £2bn of which had gone to people who had not lost out in the first place. | Mr Taylor told BBC Radio 4's Today programme that the compensation package announced by Mr Darling on 13 May had been a "blunderbuss" approach, £2bn of which had gone to people who had not lost out in the first place. |
| He said he hoped to get a commitment from the Treasury that all of those who lost out would be compensated within this financial year. | He said he hoped to get a commitment from the Treasury that all of those who lost out would be compensated within this financial year. |
| No changes | No changes |
| And he told the BBC later that more than 20 MPs had signed his amendment adding: "There is a similar number that have indicated they will back me in the lobbies if it comes to a division but I am hoping that the minister who responds will give reassurances that there will be full in-year compensation to the remaining 1.1m people." | And he told the BBC later that more than 20 MPs had signed his amendment adding: "There is a similar number that have indicated they will back me in the lobbies if it comes to a division but I am hoping that the minister who responds will give reassurances that there will be full in-year compensation to the remaining 1.1m people." |
| On Saturday, the Commons Treasury select committee criticised the chancellor's compensation package. | On Saturday, the Commons Treasury select committee criticised the chancellor's compensation package. |
| I find it difficult to see how they could now, in retrospect, get a simple coherent package to sweep everyone up Vince CableLib Dems | |
| It said it would make up the losses of most of the 5.3 million affected by the 10p decision, but leave 1.1 million of the poorest workers out of pocket by up to £120 a year. | It said it would make up the losses of most of the 5.3 million affected by the 10p decision, but leave 1.1 million of the poorest workers out of pocket by up to £120 a year. |
| Downing Street has indicated that no further changes were planned to income tax arrangements for this financial year. | Downing Street has indicated that no further changes were planned to income tax arrangements for this financial year. |
| Shadow chief secretary to the Treasury Philip Hammond said the Conservatives would put forward their own amendment to "force the government to come back to Parliament with a full report on proposals" to help the 1.1m. | Shadow chief secretary to the Treasury Philip Hammond said the Conservatives would put forward their own amendment to "force the government to come back to Parliament with a full report on proposals" to help the 1.1m. |
| He said their proposal would mean Parliament would vote on that package of measures at the time of the pre-Budget Report in the autumn, when Mr Darling will announce plans for future years. | He said their proposal would mean Parliament would vote on that package of measures at the time of the pre-Budget Report in the autumn, when Mr Darling will announce plans for future years. |
| Different groups | |
| And Vince Cable, Treasury spokesman for the Liberal Democrats, said the "key message" was that in future the government had to be clear, about which households benefit and which households lose out under tax changes. | |
| He said it was hard to see how the government could now come up with a way of "simple straightforward way" of compensating everyone who lost out under the 10p tax change, as they spanned different groups - from low-paid workers to some pensioners. | |
| "I find it difficult to see how they could now, in retrospect, get a simple coherent package to sweep everyone up. It would be nice if they could but I doubt that it's practical," he told the BBC. | |
| The chancellor's compensation package was produced after Labour backbenchers had threatened to block the Budget by preventing the Finance Bill passing through Parliament. | The chancellor's compensation package was produced after Labour backbenchers had threatened to block the Budget by preventing the Finance Bill passing through Parliament. |
| The decision to scrap the lowest 10p tax rate, made by Gordon Brown in his last Budget as chancellor in 2007, came into force in April this year - alongside a reduction in the basic rate of tax from 22% to 20%. | The decision to scrap the lowest 10p tax rate, made by Gordon Brown in his last Budget as chancellor in 2007, came into force in April this year - alongside a reduction in the basic rate of tax from 22% to 20%. |