Downing Street Says » Income Tax

» Tuesday, May 6, 2008

Income Tax

Asked to clarify the Government’s position on the issue of the abolition of the 10p income tax threshold, the PMS said that the Government’s position was set clearly in the letter that Alastair Darling sent to the Select Committee on the 23rd April. The letter had stated that the Government would be doing further work in the run-up to the pre-Budget report. The letter said very clearly that we would be bringing forward proposals in relation to low-income households at the time of the pre-Budget report and that we would expect to bring forward proposals in relation to pensioners in advance of that.

The formal position was as set out in Alastair Darling’s letter and that had not changed. The Government would continue to set out its position on the 10p income tax issue in different forums and to different audiences, as the Prime Minister had done at the weekend and that would continue over the weeks ahead.

Asked if there would be any announcement on the issue before the 22nd May when there was a by-election, the PMS said that these were really matters for the Treasury to continue to consider in terms of their detailed implementation of how they would set out and take forward the issues in the Chancellor’s letter. The formal position remained as set out in the Chancellor’s letter.

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Income Tax

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