GORDON Brown was under fire from Labour colleagues today over his decision to scrap the 10p starting rate for income tax.
The decision - one of the last the Prime Minister made as Chancellor - came into force yesterday.
It was criticised by an influential House of Commons committee as an `unreasonable' way of funding the government's other spending priorities. MPs say poorer people with no children will be penalised.
Graham Stringer, Labour MP for Manchester Blackley, joined the chorus of disapproval this morning when he described the decision as `incomprehensible'.
Mr Stringer added that the level of discontent expressed at a recent meeting between Labour MPs and Mr Brown over the issue had been `unprecedented'.
"It is incomprehensible that a Labour government should be making people who are working for around £18,000 a year worse off," he told the M.E.N.
But other Labour sources rallied round the Prime Minister after the Conservatives and Liberal Democrats tried to exploit splits over tax.
One source said he MPs' meeting had expressed only `a low murmur of concern'.
A report by the Commons Treasury Committee - warning that low paid workers without families would be hardest hit - was expected to fuel rebellion on the Labour backbenches.
But business secretary John Hutton ruled out a rethink of the measure. Mr Hutton insisted that scrapping the 10p rate had been part of a `balanced package' which had left families with children `significantly better off'.
He said: "We are talking in the worst case scenario about half a per cent of net income being the maximum loss."
John McFall, chairman of the Commons committee, said: "It seems strange that the abolition of the 10p starting rate of income tax disadvantages mainly low-income households."
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Brown under fire over 10p tax
April 07, 2008

Showing comments 1 to 25 and replies | View All
M C Spanner (07/04/2008 at 11:53)
I am sure that uncle Gordon wasn't looking to benefit me and the extra tax he is taking by messing around with the NI upper limits next year will prove that. but to take money out of the pockets of hard working folk for a cheap election gimmick is one step too far for most.
What is the point of taking a lower paid job when your paypacket is being burgled again. No wonder so many people lounge around collecting their benefits and laughing. No wonder the only applicants for unskilled jobs are either unemployable or from poorer EU countries.
Chuck a congestion charge from 2013 and then watch the government claim that they are helping people out of poverty.
PW, Manchester (07/04/2008 at 12:36)
M C Spanner (07/04/2008 at 12:55)
I am from middle England. The joy of being from Middle England is we are generally educated and working hard to better ourselves. I believe the government like to call it the coping classes.
The trouble is that this slight of hand is of barely any interest to us. The too low 40% band, the increases in NI, Fuel, Cigars (And Cigs) Wine, Spirits and Real Ale, changes to CGT to remove the 10% band, Non Dom Taxes, increases in IPT and flight taxes have more than negated the minimal increase from this tax fiddle.
Add that to taxes raised in the name of environmentalism such as new VED bands, Company Car Tax changes, Increased LEL Corporation rates and you can see why middle Income is abandonning this man in droves.
What I can't understand is why he is now trying to attack the working classes through the tax system. Is he trying to set some record for the lowest ever number of Labour seats. I doubt even Mrs Thatcher was this unpopular, even in the mining towns she affected.
Guten Tag (07/04/2008 at 12:55)
didarunna2spain, Tarragona Spain. (07/04/2008 at 13:58)
Mike S, Manchester (07/04/2008 at 14:04)
Cut to the next day when people had done their homework over night and realised that it actually meant that the poorest workers on the 10% bracket (over 2,000,000 people) effectively have their taxes double, and even people on higher rate tax will only save roughly £20 per month maximum (not much when you're already paying £1,000+ a month tax), which will disappear anyway when the higher NI thresholds come in.
The "Super Chancellor" Gordon Brown spent 10 years crippling this country and now Alistair Darling seems to be getting blamed for it all (although I can't abide him either). That and Ed Balls's reply when David Cameron responded to the latest budget stating that Britons were being taxed the most they had ever been - he said "so what?". They all need to go.
dessie, manchester (07/04/2008 at 14:04)
bye bye mr brown and take your shambles of a government with you, your time is up!!
Come-On-City. Paris, France. (07/04/2008 at 14:56)
The Bobelesque, MANCHESTER (07/04/2008 at 14:57)
Surely time for them to go!
Come-On-City. Paris, France. (07/04/2008 at 15:32)
"Hit the lowest paid and weak the hardest so we can give tax breaks to millionaires.
What a shameful country this as become."
vera angry (07/04/2008 at 17:03)
So can some one here explain, slowly as I obviously miss a lot, where this figure comes from and is it meant to represent the real low payed ? .
A minimum wage set at £6 per hour, 40 hour week = £12,480, even without kids this is a pittance.
I do not want to see employers moaning about the costs of paying a decent wage, if you can not pay a good wage then you can not afford to employ a worker, do the job yourself or cut your profits.
As for this government, their values bear no resemblance to the true labour, which appears to be dead.
The original PM became involved with "New labour" specifically for the top job, to feed his ego and pocket, and not for the good of the people, he has this in common with the bulk of politicians, local and other, hence the "so what" attitude.
How about we pay politicians the minimum wage, perhaps then we may get people that want to job for the right reasons and not their own egotistical and financial greed.
gladioli, openshaw (07/04/2008 at 17:40)
selfexiled (07/04/2008 at 18:50)
Saint, Middleton (07/04/2008 at 20:43)
The tax evaders and VAT fraudsters are small fry ... it's the super rich who deposit large sums of money in off-shore accounts to avoid paying tax that hits hard, and as per usual it's the honest workers who make up the shortfall by paying more tax, it's always been like this because of the greedy upper classes that have got the country in it's pocket.
We should be more like the Germans - a no-nonsense approach. They basically bribed a German accountant to give the names of people stashing money abroad and rounded them up, one of them was a German M.P.
Mark Thatcher, cash for honours, oil, weapons sales, pharmacuticals etc etc etc.
mumto1, manchester (07/04/2008 at 21:17)
Im getting further and further into poverty not out of it, all the statistics are massaged to make them appear better.
My vote will deffinately not be going to Labour next time, and neither will about 100 of my friends and family, if we feel this way how many others do too?
anthony, Accrington,Lancashire (08/04/2008 at 08:05)
alvinlwh (08/04/2008 at 10:57)
ace, manchester (08/04/2008 at 11:38)
The Bobelesque, MANCHESTER (08/04/2008 at 11:44)
ace, manchester (08/04/2008 at 11:46)
ace, manchester (08/04/2008 at 12:20)
M C Spanner (08/04/2008 at 12:29)
I think that should read makes the rich poorer and the poor work harder.
ace, manchester (08/04/2008 at 13:08)
The rich in britain never gets poorer mate. our whole system is built on making the very rich richer that is why the poor pay more in taxes .they cannot get offshore accounts etc.I know a lot of wealthy people who pay very little tax. they buy homes all over the globe .And yet i know people who work in hotels who actually pay a fortune in taxes.. This country is built for the wealthy helped by the politicians..
M C Spanner (08/04/2008 at 15:35)
All your nonsense is just pure jealousy. This should be a country where all get richer. The more effort and risk you put in the more you get out. There should be no shame in having a bob or two. If you chose not to take a risk, not to study or not to work hard, don't bleat about others who have.
Come-On-City. Paris, France. (08/04/2008 at 16:50)
I dont know what else to say. Are Labour trying to get voted out?