10P TAX “WILL BE SORTED” PROMISES BROWN

22-04-2008

The Stirrer’s Westminster sources are confident Gordon Brown will head off a backbench revolt against the scrapping of the 10p income tax band. Yet despite the PM's pledge to deliver a compensation package, several West Midlands MP’s have signalled that they are willing to vote against the government.

Brown told a packed meeting of the Parliamentary Labour Party last night, “there is the political will to sort this out”. 

In other words, “trust me, and I’ll give you what you want - eventually!"

The Wolverhampton South East MP and junior Minister Pat McFadden recalled a similar furore a few years ago over a tax increase on pensions, when Tony Blair headed off a rebellion by promising to sort the issue later.

He argues that Prime Minister’s assurances should be seen in the same light.

“We can’t have a situation where Labour MP’s are voting down the Finance Bill”, McFadden argued.

“That would be damaging for the government, and it’s pointless because the PM has said he understands their concerns. 

“He’s willing to start a process where people can sit down and talk to Alastair Darling and Yvette Cooper.  But it’s quite a complex process and it won’t be finished next week.”

Rebel Labour MP Frank Field has tabled a motion demanding compensation for the losers in the deal – reckoned by some sources to amount to 5 million people.

He’s got the backing of Edgbaston MP Gisela Stuart who said, “people in my constituency on weekly pay packets are getting their wages through and they are already noticing the difference.

“We need to find a mechanism to compensate them, especially the under-25’s who have no children.  I meet parents on the doorstep who tell me those are one of the worst groups affected.”

Another potential rebel is the Perry Barr MP Khalid Mahmood who said, “A lot of people feel het up about this. 

“Frank Field accepts that we can’t rewrite the budget, but we need something to compensate that is deliverable to help the lowest earners.”

The Stirrer’s sources suggest that despite the anger of many Labour backbenchers, a deal will be done over the next few days and that Field will withdraw his troublesome amendment.

We shall see – but in any event, the episode highlights the curiously accident-prone nature of Brown’s Premierhship.

His determination to end child poverty and alleviate low wages have been among the great successes of Labour’s 11 years in office, yet he’s been tripped up by an act of meanness towards the worst-off in society.