Another headache for Gordon Brown?
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From the BBC: Prime Minister Gordon Brown could face a fresh backbench revolt over his 2007 decision to scrap the 10p bottom rate of income tax. A group of Labour MPs – led by Frank Field and Greg Pope – are threatening to block this year’s entire Budget in a vote in the Commons on Tuesday. They say their amendment is also being supported by Tory leader David Cameron and the Liberal Democrats. Rebels say millions of people on low incomes are worse off since the change.
The decision to abolish the 10% starter rate of income tax was included in Gordon Brown’s last Budget as Chancellor. It came into force in April last year – alongside a reduction in the basic rate of tax from 22% to 20%. The government headed off an earlier revolt last year – by promising compensation for those who lost out by the decision to scrap the lowest tax band, including larger personal tax allowances. But the rebels say that at least 1.3 million people are still worse off by more than £1 a week, with more out of pocket by less than £1 a week. “Although the amounts are small, the principle of poorer people losing out remains toxic,” says BBC political correspondent Reeta Chakrabarti. The rebels claim as many as 30 Labour MPs could vote against the government. They say if their motion is passed ministers will have to produce proposals to ensure no person was worse off before the Commons would grant the Government powers to continue levying income tax.
Much as I’d like to believe that this will hurt Gordon Brown, I think it might have precisely the opposite effect. It is obvious that Gordon Brown has no quarms with burying this country even deeper into debt for purely political reasons, so surely he could take this uprising and turn it to his advantage by saying that he will do ‘whatever is necessary to help hard-working families’ and give Frank Field et al exactly what they want? Could be a bit of a PR coup, couldn’t it?
Witanagemot Blogs
“Could be a bit of a PR coup, couldn’t it?”
Difficult to say – it’d be yet another challenge to his authority. How many more of these can he take?
But yes, that needs to be weighed up against the ’scorched earth’ policy the government are now clearly following…
I tend to agree with Julia. He has had so many challenges to his authority that it is becoming death by 100 cuts (no pun intended).
What will probably happen on previous form is that Brown will blather and bluster about how he has already done “the right thing” refuse to engage with his critics and try and steamroller it through. That is until he realises that he is staring defeat in the face at which point the smell of burning rubber and the screech of brakes will be detectable from outer space as he caves in whilst simultaneously trying to claim that he is not caving in. And any possible political advantage from eventually doing what the rebels and the opposition want will be squandered.
Never underestimate Brown’s ability to turn an opportunity into a crisis.
So many relaunches, so many attempts to polish a turd…
Julia, it seems that he can take plenty more – unless you agree with Mike Smithson that Mandelson is arranging a dignified exit for Brown later this year….
Mark, I can see it happening, I really can.
Shaun, but what a shiny turd it is.
After a time the public makes up its mind about a PM. This has happened to Brown and the public’s opinion of him won’t be moved by stuff like this.
The only hurt will come from the remembrance that Brown has already said
A} No one will be worse off under the 10p rate change
B} Anyone who is worse off will be have their loss made up
c} Everyone will be compensated very quickly {this was the budget before last}
d} At the time 2007 Gordon Brown presented the 10p tax chop as a TAX CUT.
In fact The result was that while giving away £8bn in 2008/09 and £9.6bn in 2009/10, he will claw back £7.3bn and £8.6bn in those years.
Closer analysis also showed that while giving with one hand, he is taking money back with the other via a £2.35bn rise in National Insurance targeted at middle income families.
Frank Field just serves to remind everyone that Gordon’s words say one thing while his actions perform another.
This one’s going to be more than interesting – how is he going to head this one off at the pass?
The 10p tax fiasco has been an unedifying experience it is true. But this is just political micheif making of the highest order.
Cameron has to back it, or Labour will make hay with it later, especially if LFAT is right and Brown is lined up for an exit in the autumn. The Lib Dems will back it because they will never have to put any piece of legislation into power as they are wholly irrelevent.
It does the country no favours for the budget bill to fall at this time. There will be just another expensive round of Pork Barrel politics between Brown and tha Labour Backbenchers involved, the deficit will increase, and the tax rises in question will just be put off another year for the incoming government to impliment.
Huge tax rises are coming. The pain over the 10p tax band will be insignificant compared to that which will come. Everybody will feel it, no matter what their income. It is inevitable, we might as well suck it up and take the medicine now.
The real task when this pathetic term of office is over, is to change the agenda over what the state does and does not do, how big the state is and how much it costs to run.
Someone with the brains of Frank Field should be looking at that now, moving the agenda on so that the next election can be fought on real issues, not the propaganda issues his front bench collegues would like us all to concentrate on, (such as nasty homophobic tories).
I think we should force Gordon to serve another term and make him sort out his mess.
Why should another party have to pick this up and spend goodness knows how many years trying to get on top of a huge debt of Gordon’s making first as Chancellor and then as PM.
I think he knows he wont get in next time so has nothing to lose and in a couple of years labour will be able to turn round and blame whoever is in denying they are to blame and would have had it sorted! So, lets make them.