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David Cameron pushed into early vote on marriage tax break David Cameron pushed into early vote on marriage tax break
(3 months later)
David Cameron has moved to head off a backbench revolt over tax incentives for married couples by announcing that the government will bring forward legislation by the end of the year.David Cameron has moved to head off a backbench revolt over tax incentives for married couples by announcing that the government will bring forward legislation by the end of the year.
As a backbench Tory campaign for an immediate vote gathers pace, No 10 confirmed the government would finally introduce the legislation in the autumn, paving the way for a coalition battle between Cameron, who passionately believes in strengthening marriage through the tax system, and Nick Clegg, who regards the move as antiquated. George Osborne, one of the most socially liberal Tory MPs, has little personal enthusiasm for the idea.As a backbench Tory campaign for an immediate vote gathers pace, No 10 confirmed the government would finally introduce the legislation in the autumn, paving the way for a coalition battle between Cameron, who passionately believes in strengthening marriage through the tax system, and Nick Clegg, who regards the move as antiquated. George Osborne, one of the most socially liberal Tory MPs, has little personal enthusiasm for the idea.
Under the coalition agreement, Cameron is entitled to introduce the measure in government legislation. This should be passed because the Liberal Democrats agreed in 2010 to abstain in any parliamentary vote on the issue.Under the coalition agreement, Cameron is entitled to introduce the measure in government legislation. This should be passed because the Liberal Democrats agreed in 2010 to abstain in any parliamentary vote on the issue.
But the Lib Dems are likely to strike a hard bargain because the measure could be costly and would have to be introduced in a finance bill that would be subject to agreement by the "quad" of senior ministers. Clegg will push for concessions, possibly an acknowledgement of an even speedier move towards reaching the Lib Dem ambition of raising the tax-free personal allowance to £12,000.But the Lib Dems are likely to strike a hard bargain because the measure could be costly and would have to be introduced in a finance bill that would be subject to agreement by the "quad" of senior ministers. Clegg will push for concessions, possibly an acknowledgement of an even speedier move towards reaching the Lib Dem ambition of raising the tax-free personal allowance to £12,000.
The prime minister is expected to use his speech to the Conservative party conference in early October to announce his marriage tax plans. The chancellor is likely to set out the plans in his annual autumn statement to parliament.The prime minister is expected to use his speech to the Conservative party conference in early October to announce his marriage tax plans. The chancellor is likely to set out the plans in his annual autumn statement to parliament.
A Downing Street source said: "We plan to bring forward government proposals for a married couples tax allowance before the end of this year."A Downing Street source said: "We plan to bring forward government proposals for a married couples tax allowance before the end of this year."
No 10's decision follows a failure by the Treasury to dissuade Tory MPs from backing an amendment to the current finance bill, tabled by the former children's minister Tim Loughton, which would change the law next spring. Cameron said the Loughton amendment was flawed as he appealed to Conservative MPs to hold fire on the grounds that he will introduce the measure through government legislation. Speaking in Islamabad shortly before flying to Kazakhstan, the prime minister said: "The point is that we are going to be putting in place the marriage tax proposal in law. We will be announcing plans for that in this parliament, quite shortly in fact.No 10's decision follows a failure by the Treasury to dissuade Tory MPs from backing an amendment to the current finance bill, tabled by the former children's minister Tim Loughton, which would change the law next spring. Cameron said the Loughton amendment was flawed as he appealed to Conservative MPs to hold fire on the grounds that he will introduce the measure through government legislation. Speaking in Islamabad shortly before flying to Kazakhstan, the prime minister said: "The point is that we are going to be putting in place the marriage tax proposal in law. We will be announcing plans for that in this parliament, quite shortly in fact.
"I haven't seen the amendment but I don't think that the amendment is in line with the plans that we have. The government is going to do this itself, very shortly, so I think we should let the government get on with it, itself.""I haven't seen the amendment but I don't think that the amendment is in line with the plans that we have. The government is going to do this itself, very shortly, so I think we should let the government get on with it, itself."
The government has been battling unsuccessfully to persuade Tory MPs not to back Loughton's amendment to the finance bill, which would come into force in the 2014-15 finance year if it were passed. Loughton said his amendment was designed to be helpful to the government. It would be relatively cheap because it would only be available to married couples and those in civil partnerships if they have at least one child at home under the age of five. The level of the transferable allowance would be decided by the chancellor subject to a parliamentary order.The government has been battling unsuccessfully to persuade Tory MPs not to back Loughton's amendment to the finance bill, which would come into force in the 2014-15 finance year if it were passed. Loughton said his amendment was designed to be helpful to the government. It would be relatively cheap because it would only be available to married couples and those in civil partnerships if they have at least one child at home under the age of five. The level of the transferable allowance would be decided by the chancellor subject to a parliamentary order.
No 10, which had said it would introduce legislation before the 2015 election, has now offered a firm commitment after David Gauke, the Treasury minister, failed to reassure Tory MPs when he said the legislation would be introduced "in due course". Loughton told the Daily Mail last week: "The phrase 'in due course' is meaningless." The prime minister opposes the amendment because it would make the change too hastily and would only be open to couples with young children. Cameron's original plan was to offer a £750 transferable allowance to all married couples, plus those in civil partnerships. Loughton said, in outlining his amendment, that a change was "long overdue". The former children's minister said: "It is long overdue for him to put our money where his mouth is and honour the longstanding Conservative pledge to restore a transferable married couple's tax allowance and send out a clear message that we value marriage and family socially and financially. More than three years on from our manifesto commitment to bring in a transferable tax allowance, ratified in the coalition agreement, it appears no nearer and the patience of many hardworking home based parents is being severely stretched."No 10, which had said it would introduce legislation before the 2015 election, has now offered a firm commitment after David Gauke, the Treasury minister, failed to reassure Tory MPs when he said the legislation would be introduced "in due course". Loughton told the Daily Mail last week: "The phrase 'in due course' is meaningless." The prime minister opposes the amendment because it would make the change too hastily and would only be open to couples with young children. Cameron's original plan was to offer a £750 transferable allowance to all married couples, plus those in civil partnerships. Loughton said, in outlining his amendment, that a change was "long overdue". The former children's minister said: "It is long overdue for him to put our money where his mouth is and honour the longstanding Conservative pledge to restore a transferable married couple's tax allowance and send out a clear message that we value marriage and family socially and financially. More than three years on from our manifesto commitment to bring in a transferable tax allowance, ratified in the coalition agreement, it appears no nearer and the patience of many hardworking home based parents is being severely stretched."
Josie Cluer, of the Don't Judge My Family group, which campaigns against the marriage tax allowance, said: "When the government has just slashed budgets by £11.5bn, families up and down the country will be outraged that the Tories can find over £500m to promote their fantasy [1950s] family: a married couple with a breadwinner and a homemaker.Josie Cluer, of the Don't Judge My Family group, which campaigns against the marriage tax allowance, said: "When the government has just slashed budgets by £11.5bn, families up and down the country will be outraged that the Tories can find over £500m to promote their fantasy [1950s] family: a married couple with a breadwinner and a homemaker.
"This actually penalises single parents, widow(er)s, couples who both work to make ends meet, couples who can't find work, and couples who choose not to marry. In modern Britain, great families come in all shapes and sizes, and government has no right to tell us what's best. In these difficult times, the government should be helping families, not judging them.""This actually penalises single parents, widow(er)s, couples who both work to make ends meet, couples who can't find work, and couples who choose not to marry. In modern Britain, great families come in all shapes and sizes, and government has no right to tell us what's best. In these difficult times, the government should be helping families, not judging them."
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