Press Release
Government Compensation Package Over 10 Pence Tax Rate
A threatened backbench rebellion on the abolition of the 10p rate of tax, forced Chancellor Alistair Darling, into offering a major concessions to Labour MPs who were planning to derail the Government’s Finance Bill. In a last gasp attempt to avoid defeat the Chancellor promised to conduct a review, compensate people who are losing between £2 and £4 a week and ensure the payments due would be backdate. Local MP Tom Clarke was among several Labour MPs willing to back an amendment that would have wrecked the Finance Bill.
Tom Clarke said: “I had taken to Westminster real life examples of hard working people in my constituency who were worse off financially. The evidence I had in my possession was irrefutable overwhelming and sufficiently convincing for me to take a tough stance in support of people on low incomes”
The MP was asked why the Amendment to the Finance Bill demanding compensation was withdrawn, he replied, "I stated last week that I was willing to vote for the amendment and the Government would be very wise to reconsider their position. I could not have supported the abolition of the 10 pence rate unless I was convinced that those people in the lowest income bracket were not going to suffer financially. The commitment given by the Chancellor to conduct a review demonstrated that the Government had in fact listened not only to my representations, but that of other Labour MP’s. This will take the form of a Treasury Committee Inquiry. The Government have changed their minds and have moved their position substantially in respect of the compensation measures that will be introduced to offset the abolition of the 10 pence rate. This is a decision which I welcome, and now await the details of when and how the compensation measures will be implemented.”
The MP concluded:” The two main groups that need help are low paid workers without children, and pensioners under 65. I am committed to keeping my constituents updated as and when the details of the compensation package unfold.