The abolition of the 10% income tax rate was included in the 2007 Budget proposals but will be introduced this April.  Without a corresponding increase in the tax allowance from April, this means that low income earners  will pay the new standard rate of 20% on a greater proportion of their income from that month.

For those only paying 10% currently this will mean a big reduction in their income in addition to the increase in council tax most have to pay.

It is appalling that those on low incomes will lose, whilst those on higher incomes will gain from these latest tax changes. Once again under this government the gap between rich and poor will get wider 

Gordon Brown has moved to quell a backbench revolt over the abolition of the 10p income tax band amid fears it will hit some low-paid families. Mr Brown has assured former Labour whip Greg Pope - who tabled a Commons motion calling for action which was signed by 43 Labour MPs – that he will look again at the impact of the changes. This comes after Licensing Minister Gerry Sutcliffe criticised alcohol tax rises in this year’s Budget, although he later backtracked, saying, peculiarly, “my comments do not accurately reflect my views”. Health Minister Ivan Lewis recently criticised Gordon Brown’s style of government. Commentators have suggested that the Government is in disarray.

The income tax changes made by Gordon Brown in his last Budget represent a tax cut for the wealthy dressed up as a tax cut for the poor. Liberal Democrats pointed that out on the day they were announced. It seems Labour MPs have taken more than a year to wake up to it. The daily splits and disagreements within the Labour parliamentary party, even at ministerial level, are a sign of the growing disarray and sheer absence of competent management in Gordon Brown’s administration.