Backtracks on the 10p tax rate

  €dstowe 16:52 13 May 08
Locked

click here

"Chancellor Alistair Darling has put up the personal tax allowance by £600 - meaning anyone earning up to about £41,350 will gain £120 this year."

RUBBISH!!! What it means in fact is that those folk will have £120 less taken away from them than they would have done under the previous scheme.

  Cymro. 16:58 13 May 08

The government have certainly got themselves in a mess about this one. I dare say that they are now trying to bluff us all with statistics.

  newman35 17:04 13 May 08

Watching on TV, Darling kept failing to answer the question "What about the 1.1 million poorest who will STILL be over a £100 worse off".
Just kept pluffering about "average" better off.
Shocking - but poor guy is only paying for His Master's mistakes.

  newman35 17:06 13 May 08

Oh and ther's a by-election somewhere isn't there!!!

  bstb3 17:08 13 May 08

from the same article, they are borrowing more to fund this move. If that is the case, why not simply reinstate the 10% band and keep the 20% as the next band up? The first £60 of the £120 is being paid in September, so who gets to keep the interest on the £60 in the meantime (peanuts I know, but still).

This allowance adjustment, by their own admission, doesnt help everyone (about 20% of the people affected arent fully compensated) whilst some people are over compensated.

Just more of a muddle now than it was before it seems to me. Designed to sound good ("here have £120") rather than being a concrete solution perhaps?

  Cymro. 17:18 13 May 08

When you used the title "Backtracks on the 10p tax rate" for this posting you were very right. But backtracking is something that no politician likes to do and so will try to put a gloss the situation at all costs.

  lisa02 18:36 13 May 08

They've made a mess of the income tax system. Why can't they just re-implement the 10% bracket?

  Stuartli 21:03 13 May 08

It must have been as plain as the nose on his face to Brown that dropping the 10p tax band would hit the lowest paid the hardest.

At the time, however, he appeared to tried to avert potential criticism of the subject by announcing income tax had been cut by 2p - from 22p to 20p - at the very end of his Budget speech.

Little did the Labour MPs who cheered him to the rafters at the time realise just how much damage would be caused to their party as a result of the public's backlash.

  realist 21:18 13 May 08

In the full Commons' statement Darling says of the 60-64 age group:

"They also receive the additional £50 Winter Fuel Payment for this year, which I announced in the Budget"

Ahem,... yes, but that was supposed to offset increased fuel costs, not compensate for government bungling and double-dealing!

  lofty29 22:15 13 May 08

and do not forget that the winter fuel allowance in not per person, in the case of a married couple they get half each.Also nothing has been done for the over 65's re the abolition of the 10pence rate, many are still going to be worse off

  WhiteTruckMan 22:18 13 May 08

1-this measure is only for this year. what happens next year?

2-they had to borrow the money anyhow to do it this year, so that just puts things in a deeper hole further down the line. (unless they borrow it from northern rock)

Perhaps they will do the same again next year, in the realisation that the tories will be the ones who have to sort the mess out after the next election!

WTM

This thread is now locked and can not be replied to.

Surface Pro (2017) vs Surface Pro 4

20 groundbreaking 3D animation technologies coming to Siggraph 2017

iPad Pro 12.9 vs Surface Pro 5