Darling faces renewed challenge over 10p tax band
Chancellor Darling is facing a renewed challenge from rebel Labour MPs over the scrapping of the 10p tax band
Several Labour backbenchers are believed to support amendments to the finance
bill to help 1.1m people who the government’s £2.7bn compensation package fail
to cover after the 10p income tax band was abolished.
The amendments, by two Labour MPs, are unlikely to pass but could get enough
support to embarrass the government, the BBC News reports.
Last Saturday, the Commons Treasury select committee criticised the
chancellor’s compensation package, saying it would leave 1.1m of the poorest
workers out of pocket by up to £120 a year.
The amendments, tabled by North-West Leicestershire MP David Taylor and
Birmingham Selly Oak MP Lynne Jones, signed by 15 other Labour MPs, would
introduce a taper mechanism into the £600 increase in personal allowances for
income tax offered by chancellor Alistair Darling.