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| Version 2 | Version 3 |
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| Byers attacks 'cynical' tax move | Byers attacks 'cynical' tax move |
| (1 day later) | |
| Former cabinet minister Stephen Byers has criticised the new 50p rate of income tax and called for "clarity" over Labour's future direction. | Former cabinet minister Stephen Byers has criticised the new 50p rate of income tax and called for "clarity" over Labour's future direction. |
| He told fellow MPs the change had been introduced for "cynical political reasons" and would do long-term damage to the country and the party. | He told fellow MPs the change had been introduced for "cynical political reasons" and would do long-term damage to the country and the party. |
| There were "mixed messages" over how long the 50p rate for those earning over £150,000 would stay, he said. | There were "mixed messages" over how long the 50p rate for those earning over £150,000 would stay, he said. |
| The Tories have said the move signals the "death knell" of New Labour. | The Tories have said the move signals the "death knell" of New Labour. |
| A 50p rate for earnings over £150,000, being brought in from next April, was a key part of Wednesday's Budget. | A 50p rate for earnings over £150,000, being brought in from next April, was a key part of Wednesday's Budget. |
| The Tories say Labour has broken a key manifesto pledge from 1997, 2001 and 2005 not to increase income tax, meaning the end of the New Labour project started under Tony Blair's leadership. | The Tories say Labour has broken a key manifesto pledge from 1997, 2001 and 2005 not to increase income tax, meaning the end of the New Labour project started under Tony Blair's leadership. |
| 'Tactical manoeuvring' | 'Tactical manoeuvring' |
| During a Commons debate, Mr Byers - a leading Blairite - conceded it had been the "most difficult" Budget for a Labour chancellor to bring forward since 1997 and that Alistair Darling had done an "excellent job" under the circumstances. | During a Commons debate, Mr Byers - a leading Blairite - conceded it had been the "most difficult" Budget for a Labour chancellor to bring forward since 1997 and that Alistair Darling had done an "excellent job" under the circumstances. |
| But the 50p rate failed to recognise that the UK needed entrepreneurs to create wealth and would make the UK less attractive internationally, he went on. | But the 50p rate failed to recognise that the UK needed entrepreneurs to create wealth and would make the UK less attractive internationally, he went on. |
| If a handful of ageing pop stars and money-grubbing bankers leave the country as a result, I say good riddance Kelvin Hopkins, Labour MP | If a handful of ageing pop stars and money-grubbing bankers leave the country as a result, I say good riddance Kelvin Hopkins, Labour MP |
| It would only be paid by 350,000 people, which was not enough of a "broad base" to raise significant sums of money, Mr Byers added. | It would only be paid by 350,000 people, which was not enough of a "broad base" to raise significant sums of money, Mr Byers added. |
| The Institute for Fiscal Studies had raised doubts that it would raise any revenue at all, he said. | The Institute for Fiscal Studies had raised doubts that it would raise any revenue at all, he said. |
| Before last week's Budget, the government had promised to introduce a 45p rate from 2011. | |
| Mr Byers told MPs: "The only sensible conclusion to draw is that when one looks at the fact it's being brought forward to April 2010 - probably just a few weeks away from a general election - and that it's targeting a very small number of taxpayers - that this proposal, the 50p rate proposal, has more to do with political positioning and tactical manoeuvring than a principled and strategic approach to taxation and the raising of revenue." | Mr Byers told MPs: "The only sensible conclusion to draw is that when one looks at the fact it's being brought forward to April 2010 - probably just a few weeks away from a general election - and that it's targeting a very small number of taxpayers - that this proposal, the 50p rate proposal, has more to do with political positioning and tactical manoeuvring than a principled and strategic approach to taxation and the raising of revenue." |
| 'Regret' | 'Regret' |
| Some had suggested the rate was an "elephant trap" for the Tories, Mr Byers, a former transport secretary, said. | Some had suggested the rate was an "elephant trap" for the Tories, Mr Byers, a former transport secretary, said. |
| "It's a trap which is so large and well signposted that even the most myopic old tusker would have little difficulty in avoiding it." | "It's a trap which is so large and well signposted that even the most myopic old tusker would have little difficulty in avoiding it." |
| Some Tories would be upset that it was not being opposed by their party, the former transport secretary said. | Some Tories would be upset that it was not being opposed by their party, the former transport secretary said. |
| "I believe it should be opposed because in the long run it will be something which will be damaging for both the Labour Party and the economy," he added. | "I believe it should be opposed because in the long run it will be something which will be damaging for both the Labour Party and the economy," he added. |
| Mr Byers, MP for North Tyneside, said: "I think we will regret for many years to come as a Labour Party that a manifesto pledge on tax is to be broken in this particular way and broken literally a few weeks before a general election." | Mr Byers, MP for North Tyneside, said: "I think we will regret for many years to come as a Labour Party that a manifesto pledge on tax is to be broken in this particular way and broken literally a few weeks before a general election." |
| It could be delayed to July next year - after an election - to honour the pledge, he argued, adding: "But we aren't doing that. We are doing that, I believe, for cynical political reasons which simply won't work in our interests." | It could be delayed to July next year - after an election - to honour the pledge, he argued, adding: "But we aren't doing that. We are doing that, I believe, for cynical political reasons which simply won't work in our interests." |
| He said: "I think the chancellor is clear that for him it is a short-term measure which for him will not be a permanent fixture of a tax regime. | He said: "I think the chancellor is clear that for him it is a short-term measure which for him will not be a permanent fixture of a tax regime. |
| "There are other members of the cabinet who are saying other things. And I think we need clarity as members of the Labour Party as to the direction in which we are going, we need clarity from senior cabinet ministers." | "There are other members of the cabinet who are saying other things. And I think we need clarity as members of the Labour Party as to the direction in which we are going, we need clarity from senior cabinet ministers." |
| But Labour MP Kelvin Hopkins welcomed the proposed 50p tax rate and condemned the "pathetic and contemptible" criticism of it by the "mega rich". | But Labour MP Kelvin Hopkins welcomed the proposed 50p tax rate and condemned the "pathetic and contemptible" criticism of it by the "mega rich". |
| He said: "If a handful of ageing pop stars and money-grubbing bankers leave the country as a result, I say good riddance. | He said: "If a handful of ageing pop stars and money-grubbing bankers leave the country as a result, I say good riddance. |
| "My concerns are about the jobless and the poor who will really suffer from this recession." | "My concerns are about the jobless and the poor who will really suffer from this recession." |