James Duddridge, MP for Rochford and Southend East, is “astounded” by the Prime Minister’s U-turn today on plans for tax changes that would see the lowest paid residents in Southend hit the hardest.
Implementing changes originally announced in the 2007 Budget while Gordon Brown was still Chancellor, the Government has been planning to put forward legislation on Monday to abolish the 10p tax rate so that all taxpayers pay at least 20p on every £1 they earn. Following huge opposition, including from his own Labour MPs, the Prime Minister today announced that compensation will be available for some of those affected.
Speaking after Prime Minister’s Question Time, James said:
“I’m absolutely astounded by the Prime Minister’s U-turn today, but I have to say I’m not surprised. His tax strategy is falling apart and there has been an open tax revolt in the Labour Party.
“Clearly the Government is in disarray as a potential economic crisis looms.”
The Government still plans to abolish the 10p tax rate and James will be voting against the necessary legislation on Monday. Without any compensation, the changes would mean that 1 in every 5 families will be worse off, and the amount lost by each family would be anything up to £446.
James said:
""On April 6th many cleaners, waiters, and shop assistants saw their tax rate double overnight. By abolishing the 10p tax rate the Government specifically targeted the poorest families in the country at a time when the costs of food, fuel and mortgages are already rising.
""It is evident that many families in Southend and Rochford will be hit hard by the tax rise and there’s no guarantee that the compensation package will be good enough. I think the Government will receive a nasty shock on May 1st when local people have a chance to tell Gordon Brown exactly what they think of this tax hike.”
23 April 2008