Brown facing fresh 10p tax fight

06/07/2009

MPs are ready to rebel over changes to the tax system affecting low-income Brits, it has been claimed.

Some Tory, Liberal Democrat and Labour MPs are thought to be unhappy about the abolition of the old 10p income tax band and the merging of those who previously paid 10p and 22p in the pound into a new 20p rate.

The members, including former Labour minister Frank Field, believe that this has led to many poor people being even worse off than before.

Figures cited by the rebels suggest that over 1.3 million people are at least £1 a week worse off - and that a total of 3.5 million have lost money as a result of the change.

If the vote goes the rebels' way, the government's entire Budget could be blocked from passing.

Mr Field told the Independent: "If enough Labour members show resolve, then all the 3.5 million losers from the 10p decision will at last get justice.

"Most of them are Labour voters; 3.5 million people is half the Labour vote at the 2005 election. So MPs can vote to save their seats."

The Commons vote is scheduled to take place tomorrow.

Tags; Income Worries and Debt, Recent Graduate Debt, Young Family Finances, Credit Card Lifestyle,

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