MP says no to tax change

Apr 24 2008 by Emma Pengelly, Rhymney Valley Express

RHYMNEY Valley MP Dai Havard has rebelled against the government by signing an amendment to the Finance Bill in relation to the proposed abolition of the starting 10p tax rate.

The MP is fighting against the proposal, which would leave single people who have no children and are earning under £18,000, or work less than 16 hours a week, worse off.

He said: “I agree that the negative effects of this change for those individuals not compensated in other ways is not right and needs to be put right.

“The government needs to deal with the effects of taking it away.

“There are a number of ways of putting it right, such as increasing personal allowances and one-off payments.

“But these are complex matters to change and the debate on what to do and how to do it is changing all the time at present.”

Feeling confident that the government is under pressure to listen to opposition to the change, he added: “The government looks set to lose the vote and the amendment will then have to be converted.”

Mr Havard also criticised the government for failing to act quickly enough.

“The government has promised to do something about it at the end of the year or next year,” he said.

“But these people need the money now – they need to be protected now. Promises for the future are all well and good, but they are not good enough.”

Amendments to the Finance Bill have been tabled and are likely to be voted upon on Monday, April 28.