Commenting on the Chancellor’s plans to compensate low paid workers who lost out when the 10p income tax rate was abolished, Liberal Democrat Shadow Chancellor, Vince Cable said:
“This Government’s tax policy has descended into a complete farce.
“The abolition of the 10p rate was designed to help Labour win the election that never was. Now this by-election budget is designed to help them cling on to Crewe in next week’s vote.
“The Chancellor is desperately trying to backtrack from the disastrous decisions of the Prime Minister but has still hasn’t managed to get it right. This u-turn leaves 1.1 million of the lowest paid workers losing up to £100 each.
“We can have no confidence in either a Prime Minister or a Chancellor who continue to make tax policy on the hoof, while still leaving the poorest out in the cold.”
Sunday 25 May 2008
10p tax: promise of jam tomorrow is not enough
Liberal Democrats in west Oxfordshire have attacked Government offers to compensate low income earners losing out under tax changes as “vague promises of jam tomorrow”.
The doubling of the 10p income tax starter rate was announced last year but was put into operation at the start of April after Labour MPs voted for it in March. Since then, Labour MPs have suffered a backlash from low income people whose tax rates were doubled by Gordon Brown.
Thousands of residents in West Oxfordshire have been hit hard by Labour’s decision to double the 10p income tax starter rate. Labour MPs, having only just voted to put this tax rise into operation, suddenly started shouting about how terrible it was.
It is disappointing that they caved in and agreed to back the Government’s last minute offer of vague promises of compensation. All that is on offer is jam tomorrow. There are no details of how the compensation scheme will work. Having previously been told there was no money in the kitty to reverse the tax rise, the Government has failed to explain how they will pay for the compensation scheme.
Those on low incomes in continue to lose out whilst Gordon Brown’s tax rises bite into pay packets and pensions.
It is staggering that in the same week as vague concessions for some of the lowest paid people in the country were dragged out of the Government, Gordon Brown’s door to Downing Street was wide open for bankers to visit him and successfully argue for £50 billion bailout from the taxpayer to keep the banking system afloat. There is something seriously wrong when a Labour Government turns its back on ordinary people.
The doubling of the 10p income tax starter rate was announced last year but was put into operation at the start of April after Labour MPs voted for it in March. Since then, Labour MPs have suffered a backlash from low income people whose tax rates were doubled by Gordon Brown.
Thousands of residents in West Oxfordshire have been hit hard by Labour’s decision to double the 10p income tax starter rate. Labour MPs, having only just voted to put this tax rise into operation, suddenly started shouting about how terrible it was.
It is disappointing that they caved in and agreed to back the Government’s last minute offer of vague promises of compensation. All that is on offer is jam tomorrow. There are no details of how the compensation scheme will work. Having previously been told there was no money in the kitty to reverse the tax rise, the Government has failed to explain how they will pay for the compensation scheme.
Those on low incomes in continue to lose out whilst Gordon Brown’s tax rises bite into pay packets and pensions.
It is staggering that in the same week as vague concessions for some of the lowest paid people in the country were dragged out of the Government, Gordon Brown’s door to Downing Street was wide open for bankers to visit him and successfully argue for £50 billion bailout from the taxpayer to keep the banking system afloat. There is something seriously wrong when a Labour Government turns its back on ordinary people.
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