This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/8137263.stm
The article has changed 16 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Darling speaks to 10p tax rebels | |
| (about 2 hours later) | |
| Chancellor Alistair Darling is meeting organisers of a planned Commons revolt over the abolition of the 10p starting rate of income tax. | |
| Ministers are facing a possible defeat later, with up to 30 Labour MPs threatening to join the opposition parties in demanding a rethink. | |
| The government announced a £2.7bn compensation package in the face of a similar rebellion a year ago. | |
| But former minister Frank Field says many low earners are still losing out. | |
| Mr Field and fellow Labour MP Greg Pope have threatened to block this year's entire Budget in a vote in the Commons on Tuesday. | |
| 'Worse off' | |
| 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. |
| But the government has defended the actions it has taken to support those people hit by the abolition of the 10p tax rate. | |
| The prime minister's official spokesman said: "The government believes that we have set out the best and most affordable way of providing support to lower and middle income households." | The prime minister's official spokesman said: "The government believes that we have set out the best and most affordable way of providing support to lower and middle income households." |
| The spokesman failed to answer questions over whether some people were still worse off as a result of the 2007 tax change which raised the starting rate of tax to 20p in the pound. | The spokesman failed to answer questions over whether some people were still worse off as a result of the 2007 tax change which raised the starting rate of tax to 20p in the pound. |
| '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. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| 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." |