|
|
16 Nov 2009
Downing Street has confirmed prime minister Gordon Brown has been forced into retreat over tax relief for child care following a "petticoat revolution" on Labour's back benches.
He was said to be "listening" to warnings the proposal to scrap the relief in favour of free places for some over twos could turn into as big a fiasco as scrapping the 10p tax rate.
A spokesman said formal proposals will be announced in the Pre Budget Report, seeking to square the circle between Mr Brown's Labour Conference announcement that the existing relief attached to company provision of vouchers is poorly targeted and a decision since to allow the care voucher system to continue.
There is speculation this could mean restricting the relief to the standard rate of income tax.
Since such a climb-down will severely limit the funds available for providing more free places.
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
Do we want mothers to work?
Removing/reducing the already modest voucher benefit will tip the financial balance for some. Leaving the workforce entirely for a few years is already the cheapest short term option but not a long term solution for individuals or the economy. Has Darling calculated the tax loss of stay-at-home mums?
Posted by: Andrew Owen, 17 Nov 2009 | 00:00
Child care vouchers
I can't imagine why it is not seen as discriminating against children to allow some free childcare and refuse others because their parents work? If GBrown makes childcare free, I think the tax paying parents who fund it should get priority.
If you work and have 3 schooling kids, you'll have to wake early and prepare packed lunches because you can't afford school diners for 3, but the idle mums who clog school gates in the mornings don't have to wake early because Gbrown prefers to pay for their kids alone.
Fairness? Or equality for the kids?
Posted by: UA, 19 Nov 2009 | 00:00