Dundee LibDems say Gordon Brown's reaction on abolition of 10p tax rate "thoroughly inadequate"

9.22.00pm BST (GMT +0100) Tue 22nd Apr 2008

Dundee LibDems say Gordon Brown's reaction on abolition of 10p tax rate "thoroughly inadequate"

Dundee LibDems today (Tuesday 22nd April) criticised as "thoroughly inadequate" Labour's announcement of a review into poverty, following backbench pressure over the abolition of the 10p Income Tax rate.

Liberal Democrat Leader, Nick Clegg MP, said, "After weeks of pressure from all sides, all this tired Government has been able to come up with is yet another review.

"The Treasury shouldn't need to 'consult stakeholders' to work out the impact of doubling the rate of income tax for people on low incomes.

"This is a desperate attempt to calm Labour MPs who are taking the blame from voters for Gordon Brown's decision to hit some of the poorest workers with a big tax rise for the sake of easy headlines."

Here in Dundee, LibDem City Council Group Leader, Cllr Fraser Macpherson, said, "As a result of the Budget those unable to claim tax credits or Pension Credit and earning less £18 500 are now seeing their income tax bill rise. These are those low earners who do not earn enough to gain from the 2p cut in standard rate Income Tax.

"Under the Budget changes five million low earners will be hit.

"These include low paid couples or single people who do not have access to Child Tax Credit, and older women in the 60-65 age bracket whose pensions or salaries will be taxed at a higher rate.

"The Labour Government claims that the losses for families will be offset by tax credits but there are complicated, means tested benefits which have sucked many into the bureaucratic nightmare of overpayments and underpayments.

"The Liberal Democrats questioned and opposed the tax changes when they were proposed a year ago.

"Labour has failed those on lowest incomes and instead of pointless reviews, Gordon Brown should act decisively on this issue."

Related Link:

Brown in crisis talks with Labour MPs as he battles 10p tax rebellion - The Scotsman.