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The decision to axe the 10p starting rate of income tax is being felt "very heavily" ahead of next month's local elections, David Blunkett has said. It should be possible to offer a "one-off rebate", the Labour MP and former home secretary added. He told the BBC that he prayed voters would be guided by local, rather than national, issues. Mr Blunkett said many of the lowest earners had "lost out in much larger numbers than ever predicted". Elections take place on 1 May for 149 councils in England and Wales. MPs' concerns Gordon Brown, in his last Budget as chancellor last year, decided to end the 10p starting rate of income tax, while reducing the basic rate from 22p to 20p in the pound. This came into effect earlier this month. Dozens of Labour backbenchers have expressed concerns that the change is hitting people who are under 65, have no children and earn less than £18,500 a year. The Conservatives and Liberal Democrats have also accused the government of increasing taxes on the lowest paid. Mr Blunkett told BBC Radio 4's The World at One: "They [tax changes] are small to those people who are doing very well. "They are disproportionately large to those that might be losing two, three, four pounds a week and that really does matter." 'Enormous gains' He added: "In my particular patch it is felt very heavily, but I think people are still giving the government the benefit of the doubt and they will be voting on local issues, at least I pray they do. "I think we've just got to put a picture together, a programme together that demonstrates the enormous gains that have been made by people [under Labour]." Mr Blunkett said: "The people who have lost out in much larger numbers than ever predicted are those who do not have children and not reached 65 and I think we owe them something." He ruled out simply reversing the change, adding: "But I think it might be possible to do a once-off rebate or to indicate that this would be dealt with in the pre-Budget statement in the autumn and give people an understanding that we feel for them, that we are on their side". But Business Secretary John Hutton said: "We have made these changes now." He added that Chancellor Alistair Darling constantly kept the tax system under "careful review".
I reckon they are going to take a huge hammering in the local elections, lets just hope people get off their arses to vote
I fear that is going to be the case, I dread to think what else they can bollix up with this country over another decade.
Hound makes a good pint tho
Hound makes a good pint tho… what is there to sell off now?
Quote from: Barman on April 17, 2008, 11:39:54 AMHound makes a good pint tho… what is there to sell off now? Now they've done it to Northern Rock I'd say anything they can get away with nationalising and then flogging off to asset stripping companies.
But would you really want to buy something the government has had its little patty paws on?
Not if they've decided to nationalise it, which given some of the comments we've made lately could happen.
QuoteHound makes a good pint tho