» Monday, April 7, 2008

Income Tax

Put that David Cameron had vowed to challenge the abolishment of the 10p income tax band, the PMS said that it was not for him to respond specifically to David Cameron. More generally, it was the Prime Minister’s view that we set a stable course by going ahead with the Government’s policy to cut the basic rate of income tax by 2p in the pound to 20%; that we go ahead with our proposals in last year’s Budget and this year’s Budget, to raise child benefit and Child Tax Credits; that we went ahead with proposals to raise the pensioner tax allowance that was also an integral part of last year’s Budget as well as widening the Working Tax Credit.

Asked for a comment on the Select Committee report, the PMS said that the Treasury had been responding to that yesterday. As we had made repeatedly clear with regard to the 10p rate, the reform we made to the 10p rate was an integral part of last year’s Budget; that Budget included a reduction by 2% of the basic rate of income tax from 22% to 20%, which would benefit millions of people.

Asked whether the Prime Minister was satisfied with the take-up rates for tax credits, the PMS replied that the Government always wanted to ensure that those people entitled to tax credits and benefits received them. The Treasury and HMRC had been conducting intensive work in recent months and years in order to publicise the availability of the working tax credit and to ensure as many people as possible that were entitled to it, claimed it.

Put that people had been expecting changes around the edges, the PMS reiterated that this was a coherent package of reforms that resulted in a simplification and reform of the tax system, at the core of which was a 2% reduction on the basic rate of income tax, increases in pensioner tax allowances and an increase in tax credits to channel some of the money back to the lowest paid.

Asked if there was anything planned to help childless couples, the PMS said that these were matters that got addressed in the usual way by the Chancellor in the pre-Budget report and the Budget. A significant amount had been done to help both childless people and people with children, through the significant expansion in support for these groups since 1997.

Asked whether the Whips were worried about the issue and whether the Prime Minister would be meeting with MPs himself, the PMS said that the Prime Minister kept in touch with his parliamentary colleagues and others all the time. This was a normal part of him undertaking his responsibilities. As and when the Prime Minister got asked about the subject, he would be more than happy to explain the Government’s position.

original source.

Briefing took place at 11:00 | Search for related news


  1. The Prime Minister does not address the fact that millions of people on low wages who do *not* qualify for Working Tax Credits struggling to meet day to day expenses who will lose money in their pay packet that they can ill-afford because of abolition of the 10p rate of tax. I would like to know how exactly is the government planning to help “childless couples”? There are plenty of childless singles who are losing out too, Prime Minister, but don’t they count in the Brave New Labour World?

    I’m sure the Prime Minister must be so proud of the fact that he leads a Labour party that blatently robs the poor to pay the rich.

    Comment by catface — 10 Apr 2008 on 11:40 pm | Link
  2. I am one of many single ,low-paid people working hand-to-mouth in retail;we will all be poorer by this scrapping of the 10p band.There is a feeling amongst my fellow workers as to why bother work at all, why not just go on the ‘dole’. This is a very cruel budget especially by a so called labour government.

    Comment by deborah scollan — 11 Apr 2008 on 9:34 pm | Link
  3. To have learned that Labour have now abolished the 10p tax band is another cheap shot at the lower paid. I am married, no children and am on a low income. I constantly hear how Labour have “helped” the lower earner yet how is it that when i apply for working tax credit i am told that i am above the bracket?!? Now i face losing money from my wages which at this moment in time (like alot of people) i can ill afford to lose, what with the rising cost of living, fuel, food etc. All the while the rich/poor divide is ever increasing as yet again if you earn a good wage you will benefit!! To me and my husband it seems that if you have kids – great enjoy the benefits as they are given out freely. But to be married/single and childless the attitude from Laobur seems to be “TOUGH LUCK”. I suggest that the Prime Minister lives in our situation for 1/2 months and tells me how we are supposed to carry on living like this – or should we just go back to living in a cave???

    Comment by Yvonne Morrish — 21 Apr 2008 on 11:49 am | Link
  4. I am one of Britains low paid i have children but they are all grown up. I have calculated that i will be £13 a month worse off that is £156 a year. I am already struggling to make ends meet.I am worse off than probably someone claiming benefits. I dont smoke i rarely go out socialising i enjoy the occasional glass of red wine and i cant afford to buy new clothes very often. With the new tax i wont be able to do any of these thing.

    It is completely unfair I work hard all week and pay my taxes surely there has to be something wrong with a Government who says your already poor but lets make you poorer to help wipe out poverty. Seems to me someone has not done their sums.

    Comment by Lesley Tyrer — 21 Apr 2008 on 12:50 pm | Link
  5. lets stop moaning and do something about it.this government is awful and is letting its average joes suffer.hit them where it hurts and make sure you go to the polling station.the government doesnt seem t think its accountable anymore for ts decisions,always passing the buck.LETS GET THEM OUT!

    Comment by james griffiths — 31 May 2008 on 2:13 pm | Link

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