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Brown braced for 10p tax revolt Brown braced for 10p tax revolt
(about 7 hours later)
Prime Minister Gordon Brown is braced for a fresh backbench revolt over his 2007 decision to scrap the 10p bottom rate of income tax.Prime Minister Gordon Brown is braced for a fresh backbench revolt over his 2007 decision to scrap the 10p bottom rate of income tax.
A group of Labour MPs - led by Frank Field and Greg Pope - have threatened to block this year's entire Budget in a vote in the Commons on Tuesday.A group of Labour MPs - led by Frank Field and Greg Pope - have threatened to block this year's entire Budget in a vote in the Commons on Tuesday.
Both the Conservatives and the Liberal Democrats say they are backing an amendment tabled by the rebels.Both the Conservatives and the Liberal Democrats say they are backing an amendment tabled by the rebels.
Critics say millions of people on low incomes are worse off since the change.Critics say millions of people on low incomes are worse off since the change.
The rebels insist that as many as 30 Labour MPs could vote against the government.The rebels insist that as many as 30 Labour MPs could vote against the government.
'Toxic''Toxic'
The decision to abolish the 10% starter rate of income tax was included in Gordon Brown's final Budget as chancellor.The decision to abolish the 10% starter rate of income tax was included in Gordon Brown's final Budget as chancellor.
It came into force in April last year - alongside a reduction in the basic rate of tax from 22% to 20%.It came into force in April last year - alongside a reduction in the basic rate of tax from 22% to 20%.
The government headed off an earlier revolt in 2008 by promising compensation for those who lost out by the decision to scrap the lowest tax band, including larger personal tax allowances.The government headed off an earlier revolt in 2008 by promising compensation for those who lost out by the decision to scrap the lowest tax band, including larger personal tax allowances.
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But the rebels say that at least 1.3 million people are still worse off by more than £1 a week, with more out of pocket by less than £1 a week.But the rebels say that at least 1.3 million people are still worse off by more than £1 a week, with more out of pocket by less than £1 a week.
They say if their motion is passed ministers will have to produce proposals to ensure no person was worse off before the Commons would grant the government powers to continue levying income tax.They say if their motion is passed ministers will have to produce proposals to ensure no person was worse off before the Commons would grant the government powers to continue levying income tax.
Lib Dem Treasury spokesman Vince Cable said those on very low incomes were paying too much.Lib Dem Treasury spokesman Vince Cable said those on very low incomes were paying too much.
He added: "This is a situation that Gordon Brown has made even worse, despite the temporary measures he brought in to try to fix a problem of his own making."He added: "This is a situation that Gordon Brown has made even worse, despite the temporary measures he brought in to try to fix a problem of his own making."