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07/07/2009
10p Tax Row Rumbles On
Rebel Labour MPs are preparing to muster backbench support in a bid to block the entire Budget, in protest at the decision to scrap the 10p bottom rate of income tax.
Prime Minister Gordon Brown is likely to face-down a fresh revolt over the contentious 2007 tax policy.
Labour's Frank Field and Greg Pope said they would attempt to block the Budget in the Commons today, after both the Conservatives and Lib Dems backed an amendment brought forward by the MPs.
Opponents to the tax sanction claim millions of people on low income are now worse off.
According to rebels, around 30 Labour backbenchers have pledged to vote against the government.
Mr Brown has defended actions taken to support those affected by the policy.
A spokesman for the Prime Minister told BBC News: "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 would not be drawn on the suggestion many have not benefited from the tax change.
The decision to raise the starting rate of tax to 20p in the pound formed part of Mr Brown's last Budget as Chancellor.
It came into force in April last year - in addition to a reduced basic rate of tax from 22% to 20%.
Several concession were made early last year, in a government attempt to appease those suffering most.
Around 1.3 million have lost almost £1 per week since the new taxation policy was introduced, opponents have said.
Lib Dem Treasury spokesman Vince Cable said: "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."
(PR/JM)
Prime Minister Gordon Brown is likely to face-down a fresh revolt over the contentious 2007 tax policy.
Labour's Frank Field and Greg Pope said they would attempt to block the Budget in the Commons today, after both the Conservatives and Lib Dems backed an amendment brought forward by the MPs.
Opponents to the tax sanction claim millions of people on low income are now worse off.
According to rebels, around 30 Labour backbenchers have pledged to vote against the government.
Mr Brown has defended actions taken to support those affected by the policy.
A spokesman for the Prime Minister told BBC News: "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 would not be drawn on the suggestion many have not benefited from the tax change.
The decision to raise the starting rate of tax to 20p in the pound formed part of Mr Brown's last Budget as Chancellor.
It came into force in April last year - in addition to a reduced basic rate of tax from 22% to 20%.
Several concession were made early last year, in a government attempt to appease those suffering most.
Around 1.3 million have lost almost £1 per week since the new taxation policy was introduced, opponents have said.
Lib Dem Treasury spokesman Vince Cable said: "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."
(PR/JM)
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Chancellor Gordon Brown has announced a 2% cut in the basic income tax rate from April 2008 in his eleventh Budget. However, he has also scrapped the 10p lower band, which has prompted critics to claim that most people will not be any better off. The Chancellor also announced that corporation tax would be reduced from 30p to 28p.
Basic income tax rate cut in Brown's eleventh budget
Chancellor Gordon Brown has announced a 2% cut in the basic income tax rate from April 2008 in his eleventh Budget. However, he has also scrapped the 10p lower band, which has prompted critics to claim that most people will not be any better off. The Chancellor also announced that corporation tax would be reduced from 30p to 28p.
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The rising burden of taxes is leading to UK businesses losing their competitive edge, the Confederation of British Industry has warned. The CBI launched an attack on 'stealth taxes', which it said where being introduced by the government under the guise of tax revenue protection or 'anti-avoidance' measures.
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VAT Slashed In Pre-Budget Report
Drinkers, smokers and drivers will fill the 'economic void' expected to be created by today's widely anticipated 2% VAT reduction - through increased taxation, it has been announced. Presenting his pre-Budget report to the House of Commons, the Chancellor unveiled radical plans to slash VAT from 17.5% to 15% for 13 months.
VAT Slashed In Pre-Budget Report
Drinkers, smokers and drivers will fill the 'economic void' expected to be created by today's widely anticipated 2% VAT reduction - through increased taxation, it has been announced. Presenting his pre-Budget report to the House of Commons, the Chancellor unveiled radical plans to slash VAT from 17.5% to 15% for 13 months.
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Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
