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| Cameron vow to 'stop' tax changes | Cameron vow to 'stop' tax changes |
| (40 minutes later) | |
| Conservative leader David Cameron has vowed to "stop the government in its tracks" and make them think again over the axing of the 10p income tax band. | |
| Mr Cameron said he would fight in Parliament for compensation for those affected by the "disgraceful" move. | Mr Cameron said he would fight in Parliament for compensation for those affected by the "disgraceful" move. |
| Labour is facing a backbench rebellion over the axing of the 10p rate, as MPs return after a two week break. | Labour is facing a backbench rebellion over the axing of the 10p rate, as MPs return after a two week break. |
| The Treasury has hinted there could be measures to help low earners who are worse off, but not for several months. | The Treasury has hinted there could be measures to help low earners who are worse off, but not for several months. |
| Chancellor Alistair Darling is working on proposals that would offset some of the impact of the tax changes, but they would not come into effect until the autumn pre-Budget report at the earliest. | Chancellor Alistair Darling is working on proposals that would offset some of the impact of the tax changes, but they would not come into effect until the autumn pre-Budget report at the earliest. |
| 'Not good enough' | 'Not good enough' |
| On Sunday, Mr Darling ruled out a U-turn on axing the 10p tax rate, saying it would be "totally irresponsible" to "unravel...or rewrite" the Budget. | On Sunday, Mr Darling ruled out a U-turn on axing the 10p tax rate, saying it would be "totally irresponsible" to "unravel...or rewrite" the Budget. |
| He told the BBC he "would return" in future Budgets to help those hit by the move. | He told the BBC he "would return" in future Budgets to help those hit by the move. |
| He said the government had been helping low income families with children and pensioners and would "continue doing everything we can to help people on low incomes". | He said the government had been helping low income families with children and pensioners and would "continue doing everything we can to help people on low incomes". |
| 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 explainedClarke attacks Balls | 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 explainedClarke attacks Balls |
| But Mr Cameron said that was "not good enough". | But Mr Cameron said that was "not good enough". |
| He told BBC Breakfast: "I want them to help those people now and I am going to use every power I have got in Parliament to stop them and make them think again." | He told BBC Breakfast: "I want them to help those people now and I am going to use every power I have got in Parliament to stop them and make them think again." |
| He said the abolition of the 10p rate - announced by Gordon Brown last year in his final Budget as chancellor, as he unveiled a 2p cut in the basic rate of income tax - was a ploy to grab headlines. | He said the abolition of the 10p rate - announced by Gordon Brown last year in his final Budget as chancellor, as he unveiled a 2p cut in the basic rate of income tax - was a ploy to grab headlines. |
| "For a good headline, for one day's newspapers, he was prepared to attack some of the lowest paid people in our country," said Mr Cameron. | "For a good headline, for one day's newspapers, he was prepared to attack some of the lowest paid people in our country," said Mr Cameron. |
| The Tory leader stopped short of pledging to reinstate the 10p band if his party wins the next election, as he did not know how much money "there would be in the kitty". | The Tory leader stopped short of pledging to reinstate the 10p band if his party wins the next election, as he did not know how much money "there would be in the kitty". |
| But he added: "My chancellor would never introduce a Budget that singled out some of the lowest paid people in Britain and thwacked them with a great big tax charge. That's what Gordon Brown did and he should be thoroughly ashamed of himself." | But he added: "My chancellor would never introduce a Budget that singled out some of the lowest paid people in Britain and thwacked them with a great big tax charge. That's what Gordon Brown did and he should be thoroughly ashamed of himself." |
| The Tory leader said he wanted to work with the government to find a way of helping the 5.3 million low paid workers who have lost out. | The Tory leader said he wanted to work with the government to find a way of helping the 5.3 million low paid workers who have lost out. |
| Liberal Democrat deputy leader Vince Cable - who also wants compensation for low paid workers - said cuts in the main income tax rate should be "paid for by people at the top end of the income scale, not the bottom". | Liberal Democrat deputy leader Vince Cable - who also wants compensation for low paid workers - said cuts in the main income tax rate should be "paid for by people at the top end of the income scale, not the bottom". |
| 'Serious intent' | 'Serious intent' |
| The Conservatives plan to table amendments to the Finance Bill proposing compensation for low paid workers through tax credits or allowances, which they say would cost about £700m, not the £7bn the government claimed. | The Conservatives plan to table amendments to the Finance Bill proposing compensation for low paid workers through tax credits or allowances, which they say would cost about £700m, not the £7bn the government claimed. |
| They are also considering backing an amendment by Labour rebel Frank Field, calling for a compensation package. | They are also considering backing an amendment by Labour rebel Frank Field, calling for a compensation package. |
| HAVE YOUR SAY This extra tax is going to add more strain on my limited financesJim, GlasgowSend us your comments | HAVE YOUR SAY This extra tax is going to add more strain on my limited financesJim, GlasgowSend us your comments |
| Shadow Chancellor George Osborne, speaking on BBC Radio 4's Today programme, called for a cross-party effort to force a government U-turn. | Shadow Chancellor George Osborne, speaking on BBC Radio 4's Today programme, called for a cross-party effort to force a government U-turn. |
| Mr Field, a former Labour minister, has said Treasury promises of "something undefined" in the future do not go far enough and has warned the government it will "get a real feel of just how serious our intent is" as ministers return from their two-week break. | Mr Field, a former Labour minister, has said Treasury promises of "something undefined" in the future do not go far enough and has warned the government it will "get a real feel of just how serious our intent is" as ministers return from their two-week break. |
| But he stressed he did not want to "scupper" Mr Darling's Budget. | But he stressed he did not want to "scupper" Mr Darling's Budget. |
| "None of us, as far as I know, are calling for a scrapping of the Budget, I don't think that that is serious politics," he told BBC News. | "None of us, as far as I know, are calling for a scrapping of the Budget, I don't think that that is serious politics," he told BBC News. |
| And he said he did not want the issue to turn into a vote of confidence in Gordon Brown's premiership. | And he said he did not want the issue to turn into a vote of confidence in Gordon Brown's premiership. |
| "It is absurd to escalate it in this way. For some members of the government to blow this up into 'this will be a vote of confidence' - it is nothing of the kind." | "It is absurd to escalate it in this way. For some members of the government to blow this up into 'this will be a vote of confidence' - it is nothing of the kind." |
| More than 70 Labour MPs have signed Commons motions criticising the abolition of the 10p rate - enough to overturn the government's majority and in the process deal a major blow to Mr Brown's authority. | More than 70 Labour MPs have signed Commons motions criticising the abolition of the 10p rate - enough to overturn the government's majority and in the process deal a major blow to Mr Brown's authority. |
| But it is not known how many of them will join Conservative and Liberal Democrat MPs next Monday, when MPs will get their first chance to vote on the 10p tax band. | But it is not known how many of them will join Conservative and Liberal Democrat MPs next Monday, when MPs will get their first chance to vote on the 10p tax band. |
| Strength of feeling | Strength of feeling |
| Mr Brown has already persuaded one ministerial aide not to quit in protest over the issue and offered reassurances to potential backbench rebels. | Mr Brown has already persuaded one ministerial aide not to quit in protest over the issue and offered reassurances to potential backbench rebels. |
| His spokesman refused to concede that people will be worse off as a result of the plans. | His spokesman refused to concede that people will be worse off as a result of the plans. |
| "When you undertake significant tax reform of the kind that was undertaken in the Budget, of course that's going to affect different groups in different ways," he said. | "When you undertake significant tax reform of the kind that was undertaken in the Budget, of course that's going to affect different groups in different ways," he said. |
| Speaking at the Scottish TUC conference, the prime minister said: "I know there is a debate about 10p taxation," but he urged delegates to see it in the wider context of Labour's fight against poverty. | Speaking at the Scottish TUC conference, the prime minister said: "I know there is a debate about 10p taxation," but he urged delegates to see it in the wider context of Labour's fight against poverty. |
| MPs will get a chance to voice their concerns later when they debate the Finance Bill in the Commons, although there is not expected to be a vote on the 10p rate at this stage. | MPs will get a chance to voice their concerns later when they debate the Finance Bill in the Commons, although there is not expected to be a vote on the 10p rate at this stage. |
| Ministers will also be able to gauge the strength of feeling in the Labour ranks, when MPs gather for the regular meeting of the Parliamentary Labour Party. | Ministers will also be able to gauge the strength of feeling in the Labour ranks, when MPs gather for the regular meeting of the Parliamentary Labour Party. |
| The tax change 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 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 measures which came into force this month. Child benefits, state pensions and tax credits have all gone up. | It is part of a range of measures which came into force this month. Child benefits, state pensions and tax credits have all gone up. |
| 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. |