Rebel MPs issue ultimatum on 10p tax

Labour MPs warned last night prime minister Gordon Brown has until the end of
the week to offer immediate compensation to low-paid workers who have been
disadvantaged by the abolition of the 10p tax rate or his budget will be
rejected by Parliament.

At a private meeting yesterday with more than 50 Labour MPs, chancellor
Alistair Darling promised sweeteners, planned for the autumn’s pre-budget
report, would take effect immediately rather than next year, as determined by
HM Treasury,
The Daily Telegraph reports.

But Darling acknowledged last night that, despite making further
concessions, he had failed to win over any significant numbers of the rebels,
led by Frank Field.

Field has tabled an amendment to the finance bill, demanding ministers take
measures to ‘ensure no person is worse off’ because of the 10p income tax rate’s

Further reading:

PM tries to calm troubled tax waters

story in The Daily Telegraph

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