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Darling: I can't rewrite Budget Darling: I can't rewrite Budget
(about 2 hours later)
The chancellor has ruled out a U-turn on axing the 10p tax rate, saying it would be "totally irresponsible" to "unravel...or rewrite" the Budget now.The chancellor has ruled out a U-turn on axing the 10p tax rate, saying it would be "totally irresponsible" to "unravel...or rewrite" the Budget now.
But Alistair Darling told the BBC he "would return" in future Budgets to help those hit by the move.But Alistair Darling told the BBC he "would return" in future Budgets to help those hit by the move.
He said Labour critics of the change should look at it alongside tax credit, pensions and minimum wage changes - all of which helped lower earners. Critics should look at it alongside tax credit and pension changes which had helped lower earners, he said.
Mr Darling echoed David Miliband's call for Labour to show they are united. But leading Labour rebel Frank Field said promises of "something undefined" in the future did not go far enough.
And Conservative leader David Cameron said Mr Darling should "get off his backside" and get into the Treasury to rewrite his Budget.
Mr Cameron told BBC Radio 4's The World This Weekend that the Conservatives would be "trying to get the government to stop and think again" on a "pre-meditated tax grab" on 5.3 million people.
Stomach bugStomach bug
He rejected suggestions the 10p tax rate row was Labour's "poll tax moment" - the policy often blamed for hastening the end to Margaret Thatcher's time as Tory leader and PM. In his appearance on BBC One's Andrew Marr Show Mr Darling had rejected suggestions the 10p tax rate row was Labour's "poll tax moment" - the policy often blamed for hastening the end to Margaret Thatcher's time as Tory leader and PM.
And he said he thought Labour could win the next election "if we can show the determination to win" and show that they understood voters' concerns and show they had the right answers.And he said he thought Labour could win the next election "if we can show the determination to win" and show that they understood voters' concerns and show they had the right answers.
During his interview on BBC One's Andrew Marr Show Mr Darling also confirmed that he would be making a Commons statement on Monday about the Bank of England plan to swap £50bn of government bonds for mortgages. Mr Darling also confirmed that he would be making a Commons statement on Monday about the Bank of England plan to swap £50bn of government bonds for mortgages.
EFFECTS OF TAX CHANGES Winners: Most people/ with incomes of £18,000+Under £18,000 but aged 65+ and therefore eligible for higher personal allowancesUnder £18,000 but with young children and therefore eligible for child tax credits Losers: Under £18,000 and ineligible for working tax credits because under 25Retired early and therefore ineligible for higher personal allowancesPart-timer working insufficient hours to qualify for tax credits Different personal circumstances may affect final amountsSource: PWC Tax changes explainedSend us your commentsBank £50bn rescue 'needed'EFFECTS OF TAX CHANGES Winners: Most people/ with incomes of £18,000+Under £18,000 but aged 65+ and therefore eligible for higher personal allowancesUnder £18,000 but with young children and therefore eligible for child tax credits Losers: Under £18,000 and ineligible for working tax credits because under 25Retired early and therefore ineligible for higher personal allowancesPart-timer working insufficient hours to qualify for tax credits Different personal circumstances may affect final amountsSource: PWC Tax changes explainedSend us your commentsBank £50bn rescue 'needed'
And he likened the credit crunch and its fall-out to a stomach bug which had to be allowed to work its way through the system.And he likened the credit crunch and its fall-out to a stomach bug which had to be allowed to work its way through the system.
Earlier, Mr Miliband, the foreign secretary, warned in an article for the News of the World that Labour squabbling over the abolition of the 10p income tax rate raised the risk of electoral defeat. Earlier, Foreign Secretary David Miliband warned in an article for the News of the World that Labour squabbling over the abolition of the 10p income tax rate raised the risk of electoral defeat.
Mr Miliband praised Gordon Brown's "strong values and deep convictions" but said Labour was now the "political underdog" and would lose the election if people argued "among ourselves, failing to defend each other and our leader".
He was responding to unhappiness among some Labour MPs - including six ministerial aides - about the fact that people on low incomes without dependent children have been hit by the axing of the 10p starting rate for tax.He was responding to unhappiness among some Labour MPs - including six ministerial aides - about the fact that people on low incomes without dependent children have been hit by the axing of the 10p starting rate for tax.
The tax change, announced when Gordon Brown was chancellor last year but which came into force this month, means people who would have paid income tax at the lowest, introductory 10% rate will now have to pay the 20% rate.The tax change, announced when Gordon Brown was chancellor last year but which came into force this month, means people who would have paid income tax at the lowest, introductory 10% rate will now have to pay the 20% rate.
It is part of a range of changes which come fully into force in the new tax year. Child benefits, state pensions and tax credits have all gone up.It is part of a range of changes which come fully into force in the new tax year. Child benefits, state pensions and tax credits have all gone up.
'Economic incompetence''Economic incompetence'
The Commons Treasury committee has said childless single people earning under £18,500 will lose up to £232 a year.The Commons Treasury committee has said childless single people earning under £18,500 will lose up to £232 a year.
On Saturday, Downing Street dismissed calls for a rethink over the abolition of the 10p rate, and denied it would offer concessions to critics.On Saturday, Downing Street dismissed calls for a rethink over the abolition of the 10p rate, and denied it would offer concessions to critics.
During his Sunday interview Mr Darling said it would be "totally irresponsible" to "unravel or rewrite the Budget. The financial year has already begun".During his Sunday interview Mr Darling said it would be "totally irresponsible" to "unravel or rewrite the Budget. The financial year has already begun".
Shadow chancellor Geroge OsborneShadow chancellor Geroge Osborne
"What I can say though, is that I intend in future Budgets to return to this subject... look at what we have done for the last 10 years... this government has a commitment to helping people on low incomes.""What I can say though, is that I intend in future Budgets to return to this subject... look at what we have done for the last 10 years... this government has a commitment to helping people on low incomes."
He said the lowest third of earners had been the biggest gainers from the package of changes and said he had also added another £1bn of help for low-earning people with children in last month's Budget.He said the lowest third of earners had been the biggest gainers from the package of changes and said he had also added another £1bn of help for low-earning people with children in last month's Budget.
MPs will get a chance to vote on the 10p tax issue the week after next, when ex-minister Frank Field plans to table an amendment to the Finance Bill calling for compensation for those affected.MPs will get a chance to vote on the 10p tax issue the week after next, when ex-minister Frank Field plans to table an amendment to the Finance Bill calling for compensation for those affected.
Mr Field told BBC News 24 on Sunday he welcomed Mr Darling's recognition of the problem - but said he thought the promise of help in a year's time would not be enough to win over those concerned about the change.
'Belated conversion''Belated conversion'
Shadow chancellor George Osborne told the Andrew Marr Show that they wanted to put "maximum pressure on the government" over the 10p tax rate. Mr Field told BBC News 24: "The idea that somehow we'll do something undefined in the future to protect the poorest people in work, just is not on for most Labour backbenchers.
"We know thanks to the pressure we exerted earlier this year on issues like capital gains tax that if you push this chancellor enough, he gives way and I think it is manageable to come up with a tax package that protects those on low incomes," he said. "This is a core belief for us and my guess is once we're back tomorrow morning in the Commons the government will get a real feel of just how serious our intent is not to vote against our core belief to protect the poorest."
"They shouldn't be the people who are paying the price for the government's economic incompetence." Shadow chancellor George Osborne told The Andrew Marr Show: "We know, thanks to the pressure we exerted earlier this year on issues like capital gains tax, that if you push this chancellor enough, he gives way."
He said that Mr Brown's government "feels like a government that has lost its way and lost touch with people". "I think it is manageable to come up with a tax package that protects those on low incomes... they shouldn't be the people who are paying the price for the government's economic incompetence."
Liberal Democrat treasury spokesman Vince Cable said: "The doubling of the 10p rate of tax is a £7bn tax grab from some of the poorest in society.Liberal Democrat treasury spokesman Vince Cable said: "The doubling of the 10p rate of tax is a £7bn tax grab from some of the poorest in society.
"The belated conversion of Labour backbenchers to oppose this tax rise is welcome, but it does raise questions of where were they on this issues last year." "The belated conversion of Labour backbenchers to oppose this tax rise is welcome, but it does raise questions of where were they on this issue last year."