Downing Street Says

Put that some members of the Labour Party felt that the abolition of the 10p rate of tax had a detrimental effect for those on a low income, the PMS explained that this was part of an overall tax simplification and reform package in last year’s Budget that included significant increases, particularly in working tax credit, to help those people on low pay.

Asked if that meant that people on low pay would not be worse off as a result of the change brought in by the Prime Minister, the PMS replied that people on low pay were significantly better off as a result of the tax and benefit changes that the Government had made since 1997.

Put that at least 3 or 4 people in the Labour Party had said that it was a big mistake, the PMS replied that journalists would not expect him to comment on Party matters and reiterated that since 1997 people on lower earnings were significantly better off as a result of the Government’s tax and benefit policy.

Asked about the effects of the 2007 Budget, the PMS repeated that since 1997 people were significantly better off; the 2007 Budget had been a major reform of the personal tax system, perhaps the most significant reform of personal tax for at least 10 years and included significant increases in tax credits, specifically to help those people on lower incomes.

Put that that meant people were better off, the PMS said that that question was going over old ground and that he was not sure what new fact the journalist was trying to establish or extract.

Put that people were now actually experiencing real effects rather than it just being something academic, the PMS replied that no one was trying to suggest that it was an academic thing at all; it was a very significant announcement made in a Budget last year. Since 1997 people on low incomes were significantly better off and there had been significant increases in tax credits to help people on low incomes in last year’s Budget.

Asked if the Prime Minister was minded to look at tax again, the PMS replied that these were matters for the Chancellor and the Treasury.

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» Tuesday, April 1, 2008

Tax

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