10p tax: Brown faces revolt
- 00:01:55
- ITN
10p tax: Brown faces revolt
Rebel backbench MPs are threatening to heap more embarrassment on Gordon Brown by blocking the whole budget over the 10p tax row. Former minister Frank Field is spearheading the cross-party bid to secure compensation for everyone left worse off by the controversial abolition of the 10p tax band. He has the support of 30 fellow Labour MPs as well as the Tories and Liberal Democrats. He and former Labour whip Greg Pope have tabled an amendment to the Finance Bill, which comes before the Commons later. It could force ministers to agree payments to the worst-off which would be a humiliating defeat for the Government. If passed, the amendment would force the Treasury to come up with detailed compensation proposals before the Commons would allow it to continue levying any income tax. Mr Field said: "This is the last chance for Labour MPs before the General Election to deliver justice to the 10p losers." Gordon Brown did away with the 10p starting rate in his last Budget as Chancellor, in 2007, to fund a 2p cut in the standard rate of tax. The change meant that anybody earning less than £18,500 a year saw their tax bills increase to fund cuts for those who are paid more.
ITN | July 7, 2009
