The decision to scrap the 10p rate left Gordon Brown facing one of the worst crises of his premiership earlier this year as Labour MPs rebelled and forced him to spend £2.7 billion on a package of tax cuts to compensate people who lost out.
Results of a recent survey of public opinion conducted by Philip Dunne reveal that over 60 per cent of those asked are in favour of cutting taxes to stimulate the economy. But, over 80 per cent said the government was wrong to scrap the 10p rate, which cast further economic misery on the poorest for the sake of a “tax cutter” headline.
Last week, the Commons Treasury Select Committee on which Mr Dunne sits but which has a majority of Labour MPs, demanded that more be done to compensate the remaining 1.1 million people who lost out. They include some of the country’s poorest taxpayers, who will still lose on average £120 a year under current plans.
This week MPs made a final attempt to amend the Finance Bill to deliver more targeted compensation. Ministers blocked those moves, but told rebel Labour MPs that help could be given to some of those that stand to lose out. Jane Kennedy, a Treasury minister, told MPs that the Government will put forward new compensation plans in the autumn.
Philip Dunne commenting said: “This budget has unravelled on a scale unprecedented under any previous British Chancellor. Gordon Brown and the Government’s reputation lies in tatters after this fiasco. We still don’t know what compensation the Government will be offering the country’s poorest taxpayers and will have to wait until autumn now to find out.”
‘Philip’s Panel’ is a quarterly online opinion survey by Philip Dunne, MP for Ludlow. The survey covers topical local and national issues: http://www.tellphilip.com/
Filed under: MPs | Tagged: Ludlow, Philip Dunne, Shropshire, Taxation
