Oppose tax increases on the low-paid? I do - and I did!

Written by David Heath MP and published in Frome Standard on Fri 18th Apr 2008

I've had several letters and e-mails from local people over the last week or so asking me to oppose the abolition of the 10p income tax band. Of course I will, but then I did last year when it was announced, and I'm not sure why it's taken people a year to catch up.

The measure was introduced by Gordon Brown in his last budget as Chancellor last year. It wasn't noticed by David Cameron, which I don't criticise him for as it must be extraordinarily difficult to respond without notice and immediately to a budget statement. But it was picked up minutes later by Sir Menzies Campbell, belying the critical and personally-directed nonsense in the press at the time. And of course we voted against it.

Why? Because in order to balance the books and pay for a cut in basic income tax, there would be an increase in tax paid by those on the lowest income. And despite assurances that tax credits would remove the impact, anything up to five million who, because they are under twenty five, or don't have families, or are short of retirement age, don't get credits, will pay more tax.

It's odd and unfair to penalise the least well-off. It was wrong last year, and it's wrong now. Why has it taken so many people so long to work it out?