Government leaving Guildford residents in the dark over tax U-turn

5.20.58pm BST (GMT +0100) Thu 24th Apr 2008

Gordon Brown was threatened with a major backbench revolt over his plans, which increased the burden on the least well-off

Parliamentary spokesperson Sue Doughty has expressed concern that vulnerable Guildford residents are being left in the dark following Gordon Brown's 10p tax rate U-turn.

From 6th April, Labour doubled the starting rate of income tax from 10p to 20p in the pound. Previously, a 10p rate was paid on the first £2230 of taxable income. Gordon Brown has now been forced into offering concessions to those set to lose out but there is confusion about who will be eligible for this additional help.

Commenting, Sue Doughty said:

"Gordon Brown's tax changes are now in total disarray.

"Already, thousands of Guildford residents are set to be up to £232 a year worse off because of the abolition of the 10p tax rate. Is this really the best way to tackle poverty?

"In a last-gasp attempt the Government has cobbled together a set of half promises which will not even be properly revealed for another seven months. Guildford residents deserve to know exactly how Gordon Brown's tax plans will affect the money in their pockets.

Under the tax changes announced earlier this month:

• A single person with no children earning less than £18,500 will be a net loser, by up to £232 a year.

• People taking early retirement with a taxable income of less than £8,000 will lose, by up to £232 a year.

Liberal Democrat plans to cut the tax burden for those on low income include scrapping council tax and replacing it with a local tax based on ability to pay, and cutting the standard rate of national income tax by 4p in the pound, paid for by closing tax loopholes used by the wealthy and by increasing green taxes, such as the duties paid by the most polluting vehicles and those who travel in the most polluting aircraft.