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Brown's tax changes in disarray as Government forced into u-turn
Labour MPs today called off their revolt over the abolition of the 10p income tax rate after Alistair Darling promised to compensate poor households who will lose out. The Chancellor said he would use the minimum wage, tax credits and winter fuel payments to compensate the estimated 5.3 million families who will suffer financially from the abolition of the 10p rate. Changes, he said, would be backdated to April 2008. Frank Field responded by saying he would withdraw his rebel amendment that had attracted the signatures of 45 Labour MPs and threatened Gordon Brown with his first Commons defeat as prime minister. Both Nick Clegg and David Cameron raised the issue at Prime Minister's questions today. Nick said that the lowest earners were being made deliberately worse off by the Government's tax changes, and criticised Labour for doing the job of the Tories.
