The 10p tax band - an indefensible abolition
By guest author, Gwyn Prosser MP
If you’ve never made a mistake it’s likely you’ve never made anything and never done very much. The Labour Government has done lots of good things over the last 11 years to fight poverty, improve our public services and create a fairer society, but no one can deny that there have been some mistakes and errors of judgment made along the way - and my constituents have never been slow to bring these to my attention.
Up until now, I’ve always been able to put up some kind of credible defence for my Government even when I’ve felt that they were getting it wrong. But the consequences of abolishing the 10p tax band for low earners is – in my view – indefensible.
And it seems I’m in good company because neither the Prime Minister nor the Chancellor nor any member of the Government has yet offered a defence that would sound credible to the millions people who are already on low incomes and are now having to pay more tax. That’s not what Labour should doing and that’s why I’ve told my Whip that I’ll be voting for any appropriate amendment which has a prospect of redressing the problem.
Gwyn Prosser is the Labour MP for Dover & Deal

During the life of this government the low paid minority have been more than looked after compared to those of us on average earnings. So reduction of the basic rate from 22% to 20% is more than wellcome and I would point out that 24 million of us will benifit from the changes. If the low paid want more money, do what I do, work longer hours, or go to night school and get educated.
Posted by: Anthony J | Monday, 21 April 2008 at 01:29 PM
This comment is a insult to the public as people have good jobs but do not get the pay that is deserved. And for you being a well educated person you need to know how to spell benefit!!!
Posted by: MICHAEL B | Monday, 21 April 2008 at 03:34 PM
Anthony J - I don't know where you get your figures from, about the 24 million who will benefit. Anyone earning less than £18500 will be worse off if the 10p rate is abolished. You may be interested to learn that many skilled people, some of whom have Masters degrees, are earning below that margin, and are unable to get paid overtime. Do you know, that research scientists in many parts of the country are earning less than £18500. Nursing and care staff can also fall into this bracket.
I would be interested to know what what you are employed as.
Posted by: AndyUK | Monday, 21 April 2008 at 03:34 PM
I agree with you andy me and the wife have incomes of less than £18500 each and will be affected by the 10p rate being abolished and we both have good jobs I work for the Jobcentre plus and my wife works at the hospital.
Posted by: MICHAEL B | Monday, 21 April 2008 at 03:46 PM
Substituting a figure of 22% with 20% is a generally accepted as a reduction. Why then is the substitution of 10% with 20%, when used in precisely the same context, is almost universally referred to as an abolishment? It is no such thing! The media in general would do well to stop using either of the words 'abolished' or 'axed' and call it what it is - an increase of 100%, aka 'doubling'. And, by the way, please do not forget that not only modestly paid young folk are affected, a good many 60-65 year olds are too.
Posted by: Brian H | Monday, 21 April 2008 at 06:13 PM
It is nothing more than theft stopping the 10p tax band
the M.P.s are all alright with their pay and all the extras they claim
the sad part is this will increase the conservites chance to win the next election
Posted by: Jonathan | Monday, 21 April 2008 at 06:31 PM
20% income tax for the lowest paid....Just wait for the 20% VAT rate comming soon...to pay for the bank bail outs whilst trash like Rupert Murdoch and the Al-Fayed family pay bugger-all on their massive british operations says it all: let's tax the poor until their pips squeak...
Posted by: reeza | Monday, 21 April 2008 at 09:13 PM
All the money I get from my pension and savings fall into the 10% bracket. My tax is therefore being increased by 100% this year. I am in my seventies.
Posted by: Mrs B Buchanan | Monday, 21 April 2008 at 09:22 PM
"let's tax the poor until their pips squeak..."
Sounds like a plan.
Posted by: Mike Knight | Monday, 21 April 2008 at 09:29 PM
Where do you think the government is getting the money to nationalise the banks debts? The low paid of course!
Posted by: flipped | Monday, 21 April 2008 at 09:46 PM
Anthony J - the low paid haven't done especially well out of this government and certainly not if they don't have children as they don't generally receive tax credits. NI contributions have increased, and tax allowances have only been increased in line with inflation, not earnings, so they are paying tax on a higher proportion of their earnings.
New Labour has not been good to the low paid. They've either taxed them more or have created a poverty trap with high effective marginal tax rates (via tax credit withdrawal) if they have children.
AndyK, however, is wrong about this change hurting nurses. The starting salary for nurses is above £19k and most earn considerably more than that.
Posted by: PJ | Monday, 21 April 2008 at 10:27 PM
Anthony J (01.29pm 21 April)
Anthony, are you one of those who would like to see the bosses paying less tax than their office cleaners ? Not everyone in society possesses the guile and rapacious spirit required to exploit the many tax avoidance schemes, and thus avoid paying their equitable share. I feel you should defer a little more toward the hard working and under paid 'masses' in this country.
ps. Not sure which night school YOU attended, although suggest you check out (sic) wellcome and benifit !!!
Posted by: John | Monday, 21 April 2008 at 11:33 PM
Brown's political epitaph will read : 10p TAX CRISIS ? WHAT 10p TAX CRISIS ? TELL THEM TO EAT CAKE
Posted by: Jack | Monday, 21 April 2008 at 11:50 PM
Gwyn -
Any wavering Labour MP's this week will now know how Mugabe's opponents must feel. It is hardly democracy if your conscience is not allowed to vote. For the Whips to coerce a supporting vote with threats of a fallen Government, is tantamount to saying 'charity begins at home'. Mind you, self interest, and an arrogant disregard for the 'little' people, is what started this sorry business in the first place ?
Old Chinese proverb : Be not disturbed at being misunderstood ; be disturbed at not being understanding
Posted by: john | Tuesday, 22 April 2008 at 12:15 AM
PJ - I would challenge you to go around nursing homes in the country, and find a majority of nurses (and I use that term deliberately), earning more than £18500. You may be correct in saying that SRN?SEN are earning that, but they do not make up the whole picture.
We are now living in a totally immoral country, where the leadership and elite treat us with contempt.
I was ashamed and disgusted to see Gordon Brown sucking up to the potential candidates in the US, we have nothing to thank the US for. They are probably the main reason why we need to pay more tax, to fund the illegal war in Iraq.
Posted by: AndyUK | Tuesday, 22 April 2008 at 01:04 PM
I have worked many long hours during my working life. My pitiful personal pension will now be even more pitiful with the abolition of the 10p tax.
Posted by: Anne | Tuesday, 22 April 2008 at 11:48 PM
As a higher rate taxpayer with children, the tax changes benefit me - they give me a bit more disposable income. Yet two low-earning (in full-time work) members of my family will struggle further to make ends meet! How could anyone with a social conscience consider this fair? People on low incomes have already been hardest hit by the increases in food and energy prices since these expenses form a larger proportion of their income. And frankly, I am fed up with Gordon Brown trying to excuse this 10% tax rate abolision by talking about family tax credits or pension credits. There are plenty of people on low incomes who do not have children, and they are just as valuable to society as anyone else. They should not be crippled by these tax changes and alienated further.
...and why is this issue just being talked about now, when it was known last autumn? Are politicians just unintelligent? Or is it that they just didn't really care until they realised it could lose them their seats?
Posted by: Lisa Speight | Wednesday, 23 April 2008 at 01:02 PM
I work, and have always worked full time. I am bringing up a child on my own and am considering, as many people I know, of doing a second job to make ends meet. Although how I will be able to needs some thought. I keep hoping that one day I will actually be able to save to provide for my sons education but with so many price increases my income is only just covering my expenses. Being White and British (in the minority) does not help! Why do we give so much away to immigrants and yet cannot look after our own. We are taxed, then taxed and taxed again.Oh and my employer has advised me to stop paying into my pension fund to release some extra funds!
Posted by: Dawn | Wednesday, 23 April 2008 at 02:29 PM
The scrapping of the 10% tax band will make me worse off than at any time since I took early retirement from BT in 1992. Taking ER was necessary as I was bringing up my granddaughter (becoming a single parent in the process) but as I was lucky enough to have a BT pension, I qualified for no help from the state other than child benefit. I used my nest egg to retain a reasonable standard of living for the two of us, making this last until I reached 60 and picked up the state pension; at the same time the child benefit ceased and my income tax increased, making my state pension worth only two weeks out of the four. Last year I reached 65 and received the increased personal allowance - but only after advising the Tax Office myself. This latest blow is only one of a long line seemingly designed to penalise people in my position, we who have worked all our lives with no state handouts. I don't pretend to understand what the new proposals re 10% tax on savings mean, but am confident they will be of no benefit to me whatsoever. I feel better for having let off steam and look forward to the next election !
Posted by: Gill | Monday, 28 April 2008 at 03:10 PM