Rebel Labour MP Frank Field has vowed to continue to fight against the government if low earners affected by the removal of the 10p tax band are not properly compensated.
Although prime minister Gordon Brown had agreed to compensation covering the average losses to be backdated to April 1, Field told MPs they could ‘take this measure again in our own hands’ at a later stage if not satisfied, according to BBC News.
MPs passed the finance bill clause implementing the tax changes by 304 votes to 262 late yesterday, after a Conservative amendment to the bill, which could have restored the 10p tax rate in 2009, was defeated.
Jane Kennedy, financial secretary to the Treasury, told MPs the government was seeking to assist households on a low income ‘in the next few days and weeks’.
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