This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7328725.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Minister defends income tax move | Minister defends income tax move |
| (about 2 hours later) | |
| A Treasury minister has defended the axing of the strting 10p income-tax rate - after 43 Labour MPs signed a motion saying it had been "damaging". | |
| Jane Kennedy said while she understood "a lot" of Labour Party members were "puzzled" at the move, it was a way to redirect help to low-earning families. | Jane Kennedy said while she understood "a lot" of Labour Party members were "puzzled" at the move, it was a way to redirect help to low-earning families. |
| When combined with all reforms since Labour came to power, "all families are better off", Ms Kennedy told the BBC. | When combined with all reforms since Labour came to power, "all families are better off", Ms Kennedy told the BBC. |
| The measure comes into force when the new UK tax year begins this Sunday. | The measure comes into force when the new UK tax year begins this Sunday. |
| It was announced in Gordon Brown's final Budget as chancellor, in March 2007. | It was announced in Gordon Brown's final Budget as chancellor, in March 2007. |
| He decided to reduce the basic rate of income tax from 22% to 20% at the same time as scrapping the lower 10% rate. | He decided to reduce the basic rate of income tax from 22% to 20% at the same time as scrapping the lower 10% rate. |
| At prime minister's questions on Wednesday, William Hague, the shadow foreign secretary, warned that five million low-income households would be worse off as a result of the changes. | At prime minister's questions on Wednesday, William Hague, the shadow foreign secretary, warned that five million low-income households would be worse off as a result of the changes. |
| A number of former ministers are among the 43 MPs to call on the current chancellor, Alistair Darling, to "correct this damaging change to the taxation system". | |
| 'Increased tax credits' | 'Increased tax credits' |
| "We do understand the concern," Ms Kennedy told BBC Radio 4's The World at One. | "We do understand the concern," Ms Kennedy told BBC Radio 4's The World at One. |
| "That's why so many Labour backbenchers are saying, 'How is it that we're doing this,' and, 'What are the reasons for doing it?' | "That's why so many Labour backbenchers are saying, 'How is it that we're doing this,' and, 'What are the reasons for doing it?' |
| "That's why it's important that I explain what the reasoning was behind the overall tax package." | "That's why it's important that I explain what the reasoning was behind the overall tax package." |
| She said even those who "lose out" because of this change "will have found that on average they are £505 a year, or £9.70 a week, better off overall, as a result of all of the changes that we've introduced since 1997". | She said even those who "lose out" because of this change "will have found that on average they are £505 a year, or £9.70 a week, better off overall, as a result of all of the changes that we've introduced since 1997". |
| The lowest fifth of taxpayers are around 12% better off because of all the reforms that were made since 1997 Jane Kennedy, Treasury minister | |
| People "will see that their weekly income is being affected by a number of things", she said. | People "will see that their weekly income is being affected by a number of things", she said. |
| "They will see that their tax credits will be increasing, particularly families with children are some of the biggest gainers as a result of the overall package." | "They will see that their tax credits will be increasing, particularly families with children are some of the biggest gainers as a result of the overall package." |
| And Ms Kennedy added: "The lowest fifth of taxpayers are around 12% better off because of all the reforms that were made since 1997." | And Ms Kennedy added: "The lowest fifth of taxpayers are around 12% better off because of all the reforms that were made since 1997." |
| She said the government would be ensuring the available resources would go "to the people who need them the most". | She said the government would be ensuring the available resources would go "to the people who need them the most". |
| Shadow chancellor George Osborne claimed there was "an open tax revolt in the Labour Party" which showed the government was "in disarray as a serious economic crisis looms". | |
| "Dozens of Labour backbenchers are publicly attacking the prime minister for the effect of the abolition of the 10p tax rate on the poorest," he added. | |
| "Gordon Brown's tax policy is falling apart." |