A rowdy session of Prime Minister's Questions was inevitably dominated by the climbdown in which the Government will compensate many of the losers from Gordon Brown's decision to abolish the 10p lower rate of income tax. If Brown thought that rushing it out just before PMQs would give him an easy ride, he was wrong.
True, his retreat was welcomed by Labour MPs and prevented a humiliating hail of bullets from his own side. Frank Field, leader of the Labour rebellion, has already withdrawn his amendment to the Finance Bill so the threat of a Commons defeat next Monday has been lifted.
But Brown still suffered some heavy blows at the hands of David Cameron, who dubbed the session "Prime Minister's U-turns" and left some bruises on the PM with some memorable phrases. The Tory leader said the U-turn showed a "massive loss of authority" and that Labour now realised the PM is "a loser, not a leader."
Labour backbenchers rallied round but there were some glum faces among ministers sitting alongside Brown on the front bench. Perhaps they were calculating how much damage has already been done. Until the last few days, Brown appeared to be in denial about the scale of the problem created by his final Budget and the scale of the Labour revolt.
Brown aides insist that Budget remains intact and the 10p rate will not be restored - and there is no guarantee that everyone who has lost out will get their money back. Yet the concessions are significant and there is no doubt that this is a major retreat.
In his letter to the
Treasury Select Committee, the Chancellor Alistair Darling makes clear
that compensation for pensioners aged 60-64 will be backdated to the
start of this financial year. For low paid workers who have lost out
(mainly those without children), Darling said the tax credit system
would be changed so that the average loss they suffered would be
restored. Under-25s could meanwhile be helped through a higher national
minimum wage.
The threat of a humiliating Commons defeat lifted, the PM went on the offensive by rubbishing the Tories' credentials as anti-poverty champions. But other problems still flash red on his radar screen - difficult local elections next week and the prospect of another big rebellion on plans to detain terror suspects for up to 42 days without charge. Expect a retreat on that too.
The Tories have been talking about a major defection coming soon - perhaps it will be Brown. He's certainly not a socialist any more.
Posted by: Gary | Wednesday, 23 April 2008 at 04:30 PM
My son lost a leg in Iraq. As a private soldier he gets less than £17,500 a year and is expected to pay for his food. He was on call for 24 hours a day for the time he spent in Iraq. Brown likes to talk "about the best Army in the world". He should have realised or been told that the young soldiers are amongst those who will loose money. Headley Hall used for rehabilitation wants to build a new swimming pool for use by patients. No goverment money is available, despite £120 billion being found to prop up Northern Rock and £130 billion spent on Social Services. I feel ashamed of my Country, and sorry for those who put their trust in Brown.
Posted by: alistair Stewart | Wednesday, 23 April 2008 at 04:34 PM
"New Labour's flag is dirty white.
Poor Gordon Brown had a big fright
shook to the core by 'pinion poll,
Frank Field's vote has chilled his soul
We'll change the country bit by bit
So nobody will notice it
And just to show that we're sincere
We'll spin and lie throughout the year"
The Red Flag, circa 2008
Posted by: Cynosarges | Wednesday, 23 April 2008 at 05:27 PM
I cannot believe that a supposedly interlectually gifted man called Gordon Brown(our Prime Minister)could have of behaved in such a despicable and underhanded manner.
To produce a flawed Budget is one thing but then to refuse to accept that he has made a mistake is the sign of someone who is seriously lacking in substance.
The people affected by this mans incompetance will not forgive him for letting them down.
Time to go Mr Brown
Posted by: Bernie, Suffolk | Wednesday, 23 April 2008 at 07:16 PM
I am 72 years old, and i receive state pension and a company pension which totals £18,000 per annum.at the end of this financial year I paid £1760 tax at 10p over my tax free allowance.
I will NOt receive any help with the conssesions announced to-day. Therefore my tax for this year will be increased by 100%. Good old Labour!!!
Posted by: leslie pollard | Wednesday, 23 April 2008 at 07:28 PM
It comes as no surprise that the 10p tax argument has had a turn around. Alastair Stewart who posted about his son in Iraq makes a very good point about the money raised to secure banks and shareholders but I will go further on another point. This debacle over the 10p tax is a slight of hand trick employed to make us all look in another direction while another underhanded move takes place. This is just nothing short of a game for the powers that be on the tax issue. The real issue that will cause more harm is the further integration with Europe and how much more money it will cost the tax payer. Very clever to try and turn our attention from a huge problem to a minor scuffle that will be old news by next month. Sorry to say it again Gordon but you are a criminal and many more people are begining to see what is happening in our society despite your little propoganda tricks.
Posted by: John Finningham | Wednesday, 23 April 2008 at 10:30 PM
finally a government whose not to scared to back down when they've made a mistake and listen to the people... I can't believe Cameron had used that as argument for him loosing authority, who wants a prime minister who doesn't behave in a democratic manner, yes he made a mistake and acted a little rash in the first place, but he resolved it, is David Cameron suggesting that he would stick to his guns every time the people disagree... nice :-)... theres one less vote.
Posted by: Hannah Smyth | Thursday, 24 April 2008 at 09:28 AM
I am a Briton living in Australia and draw your attention to Australia's ANZAC Day celebrations. Unlike Britain, Australians appear to know how to honour their servicemen and women. For a country that used to lead the world in fairness and compassion, Britain's descent into the "dark ages' in the way it treats some of it's citizens is a constant source of shame.
Posted by: Tony Atkins | Friday, 25 April 2008 at 03:29 AM
an elderly friend told me what the abolition of the 10p tax means to her.
It's one week's food bill, plus one week's electricity.
They would both like to thank Mr Brown for his concern over the fate of the wealthy in this country as they are obviously more deserving than they are!
Posted by: flipped | Friday, 02 May 2008 at 03:21 PM