Jaimie Kaffash

Tax Hack

A blog by Jaimie Kaffash, Accountancy Age’s tax reporter

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The 10p con comes back to haunt Brown

03 Apr 2008

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Gordon Brown's move to abolish the 10p rate of income tax, which, it became quickly clear, was the great con of his last budget, is coming back to haunt him.

MPs have signed an early day motion against the move, which takes effect this week.

The motion says:

That this House notes that, despite assurances to the contrary, many people are being made worse off by the abolition of the 10 pence tax rate; notes with concern that this is having a disproportionate impact on people who can ill afford to be made worse off; accepts that this was not the intention of the Government but is dismayed at the response to the plight of those adversely affected; and calls on the Chancellor of the Exchequer to bring forward measures to correct this damaging change to the taxation system.


The only thing I would disagree with in it is the the suggestion that it 'was not the intention of the government'.  Gordon and his Treasury acolytes would have to have been fairly silly not to realise that abolishing the rate to pay for a cut in the basic rate effectively meant charging the poor so the middle class would be better off.

Ben Brogan of the Daily Mail has the political background to the EDM, signed by 30 MPs, here.

Despite the calls from MPs, I fear that there's no money left to correct the mistakes made by Brown in his time as chancellor.

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