Press Release
MP On Collision Course With Government Over 10 Pence Rate
Tom Clarke MP is determined to stand up for people on the lowest incomes by supporting an amendment to the Finance Bill, in the absence of a Government alternative. There is outrage that the abolition of the 10 pence tax rate will financially devastate those on the lowest incomes. This week the local MP is returning to Parliament armed with ‘real life examples’ of constituents who are financially losing up to four pounds a week.
Mr Clarke said: “I am not going into parliamentary technicalities but put simply, the status quo is not an option, and yes this could mean that I will be voting for an amendment, instead of the Government. I don’t take such decisions lightly. The Government has an outstanding track record of helping low income households whether it is pensioners or families with young children, and that fact should not be lost on people. However, I have evidence from constituents that the abolition of the 10 pence tax rate will punish them severely. Unless the Government clearly changes course on this issue it will be impossible for me to support them. Even at this eleventh hour I would urge the Government to put in place a fairer system of taxation that doesn’t punish low income people”.
When asked why he has chosen to vote against the Government the MP said: “Look a few pounds a week to a person on a healthy income is not a great deal of money, it is not unusual to give that amount of money as a tip when out for a meal. When it comes to standing up for some of the poorest constituents a few pounds can be the difference between whether a person can have a meal or not. I am willing to vote for an amendment but the Government would be very wise to reconsider their position”.
The MP added: “The vast majority of people will in fact be better off because of income tax changes; the rate has been reduced from 22 pence to 20 pence. Taking into consideration both the abolition of the 10 pence rate and the reduction to 20 pence the offset is not sufficient in every individual case. There are people who are losing out financially. That is why I want to see a package of measures - by way of compensation – to ensure that no person is worse off, especially not constituents on low incomes”.
The MP concluded: “I have no wish to raise expectations that the Government will definitely change their position. What I am perfectly clear about is that I will not support the abolition of the 10 pence rate unless I am convinced that those people in the lowest income bracket are not going to suffer financially”.