BROWN BRACED FOR ANOTHER REBELLION OVER THE 10p TAX RATE

Today, the Prime Minister Gordon Brown faces yet another backbench revolt; however it is unclear how many Labour MPs will be prepared to go into Lobbies with the Tories and the Liberal Democrats. But the rebels insist that there are as many as 30 Labour MPs who are prepared to “stick to their principle”, and vote against the government. 

Backbench Labour MPs have gradually gained more power in times; the most notable victory was when they supported the Liberal Democrats over the Gurkhas. Now, the Government are braced for a fresh backbench revolt over his 2007 decision to scrap the 10p bottom rate of income tax.  

A group of Labour MPs - led by Frank Field and Greg Pope - have threatened to block this year’s entire Budget in a vote in the Commons on Tuesday.  

Both the Conservatives and the Liberal Democrats say they are backing an amendment tabled by the rebels.  

Critics say millions of people on low incomes are worse off since the change.  

The decision to abolish the 10% starter rate of income tax was included in Gordon Brown’s final Budget as chancellor.  

It came into force in April last year - alongside a reduction in the basic rate of tax from 22% to 20%.  

The government headed off an earlier revolt in 2008 by promising compensation for those who lost out by the decision to scrap the lowest tax band, including larger personal tax allowances.  

But the rebels say that at least 1.3 million people are still worse off by more than £1 a week, with more out of pocket by less than £1 a week. 

They say if their motion is passed ministers will have to produce proposals to ensure no person was worse off before the Commons would grant the government powers to continue levying income tax.  

Liberal Democrat Shadow Chancellor, Vince Cable said those on very low incomes were paying too much.  

Vince Cable added: “This is a situation that Gordon Brown has made even worse, despite the temporary measures he brought in to try to fix a problem of his own making.” 

The Liberal Democrats have already promised that they would cut tax for everyone on low and middle income, the Leader of the Liberal Democrats, Nick Clegg said recently: “These plans will give money back to the people who really need it at the time when they need it most. 

“It is time to end the unfairness that sees big businesses and the wealthy treating taxes as something to be easily avoided, leaving everybody else to pay out.

“For too long governments have been letting companies stash their money in offshore tax havens while taxpayers are left to foot the bill.

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