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MP 'to quit government over tax' MP 'to quit government over tax'
(about 1 hour later)
A junior member of the government has told colleagues she is going to resign in protest at the abolition of the 10p tax rate, the BBC has learned.A junior member of the government has told colleagues she is going to resign in protest at the abolition of the 10p tax rate, the BBC has learned.
Angela Smith, parliamentary private secretary (PPS) to Chief Secretary to the Treasury, Yvette Cooper, told them she was leaving her post.Angela Smith, parliamentary private secretary (PPS) to Chief Secretary to the Treasury, Yvette Cooper, told them she was leaving her post.
PPS is an unpaid position seen as the first rung on the government ladder.PPS is an unpaid position seen as the first rung on the government ladder.
Gordon Brown has come under pressure from Labour MPs who fear axing the 10p rate will hit low-income people. Asked about criticism of the tax move, Gordon Brown said: "I'm sticking to the job and I'm getting on with the job."
The prime minister has come under pressure from Labour MPs who fear axing the 10p rate will hit people on low incomes.
Sheffield Hillsborough MP Ms Smith has previously been extremely loyal.Sheffield Hillsborough MP Ms Smith has previously been extremely loyal.
'Porridge'
The Lib Dems and Conservatives both said the government was "unravelling".The Lib Dems and Conservatives both said the government was "unravelling".
The prime minister, who is in the US on a three-day trip, also came under fire earlier from Labour peer Lord Desai who said: "Blair was like champagne and caviar. Brown is more like porridge or haggis. He is very solid, very nourishing but not exciting."The prime minister, who is in the US on a three-day trip, also came under fire earlier from Labour peer Lord Desai who said: "Blair was like champagne and caviar. Brown is more like porridge or haggis. He is very solid, very nourishing but not exciting."
Constituents' anger
On Wednesday, Chancellor Alistair Darling said the government needed to "sharpen up" its message to voters.On Wednesday, Chancellor Alistair Darling said the government needed to "sharpen up" its message to voters.
More than 70 Labour MPs have signed at least one of three Commons motions calling for action on the abolition of the 10p rate of income tax. More than 70 Labour MPs have signed at least one of three Commons motions calling for action on the abolition of the 10p starting rate of income tax.
The decision to scrap the lowest rate was announced in last year's Budget, when Mr Brown was still chancellor, as was the decision to cut the basic rate of income tax from 22% to 20% and increase tax credits. The decision was announced in last year's Budget, when Mr Brown was still chancellor, as was the decision to cut the basic rate of income tax from 22% to 20% and increase tax credits.
It is a pity that it has taken Angela Smith a full year to react to Gordon Brown's callous decision Nick Clegg, Lib DemsIt is a pity that it has taken Angela Smith a full year to react to Gordon Brown's callous decision Nick Clegg, Lib Dems
But it has only just come into force and Labour MPs have been contacted by constituents angry at the impact the decision is having.But it has only just come into force and Labour MPs have been contacted by constituents angry at the impact the decision is having.
Earlier this month the Commons Treasury committee said childless single people earning under £18,500 would lose up to £232 a year.Earlier this month the Commons Treasury committee said childless single people earning under £18,500 would lose up to £232 a year.
The government says the abolition to the 10p rate was an integral part of last year's Budget in which "millions of people" benefited from the decision to slash the basic rate of income tax.The government says the abolition to the 10p rate was an integral part of last year's Budget in which "millions of people" benefited from the decision to slash the basic rate of income tax.
It has said it will lead to "a significant increase" in pensioner tax allowance, a widening of the working tax credit and increases in child benefit and child tax credit.It has said it will lead to "a significant increase" in pensioner tax allowance, a widening of the working tax credit and increases in child benefit and child tax credit.
'Tax con''Tax con'
For the Conservatives, shadow chancellor George Osborne said: "Gordon Brown's government is unravelling by the hour.For the Conservatives, shadow chancellor George Osborne said: "Gordon Brown's government is unravelling by the hour.
"Yesterday, the chancellor of the exchequer said the government needed to sharpen up its act."Yesterday, the chancellor of the exchequer said the government needed to sharpen up its act.
"Today a senior Labout peer has, in his own words, stabbed the PM in the front, and now a member of the government is to resign because Gordon Brown's tax con is hitting Britain's poorest families.""Today a senior Labout peer has, in his own words, stabbed the PM in the front, and now a member of the government is to resign because Gordon Brown's tax con is hitting Britain's poorest families."
Liberal Democrat leader Nick Clegg said: "Gordon Brown's government is starting to unravel before our eyes as Labour MPs see the full extent of the prime minister's betrayal of the most needy in our society.Liberal Democrat leader Nick Clegg said: "Gordon Brown's government is starting to unravel before our eyes as Labour MPs see the full extent of the prime minister's betrayal of the most needy in our society.
"But it is a pity that it has taken Angela Smith a full year to react to Gordon Brown's callous decision when we warned the government of its consequences on the very day it was announced in the Budget.""But it is a pity that it has taken Angela Smith a full year to react to Gordon Brown's callous decision when we warned the government of its consequences on the very day it was announced in the Budget."