Julia challenges Chancellor over 10p tax rate solution

5.55.00pm BST (GMT +0100) Wed 14th May 2008

Local MP Julia Goldsworthy challenged Chancellor Alistair Darling over his failure to fully compensate all those who lost out through the abolition of the 10p tax rate, during a debate in Parliament yesterday.

Ms Goldsworthy questioned the Chancellor during his statement to the House of Commons, in which he announced proposals attempting to undo the damage done by his abolition of the 10p tax rate.

Under the measures announced, 80% of those who originally lost out will be fully compensated, but 1.1m of the lowest earners in the country will continue to lose out.

Ms Goldsworthy pressed Mr Darling over why these 1.1m people are still being left worse off and why he had decided that they were the "least deserving poor" and should not be fully compensated.

Commenting, Julia Goldsworthy MP said:

"While I welcome the news that the Government has finally taken some action to compensate those who lost out through the abolition of the 10p tax rate, I am extremely concerned that over a million of the poorest people in the country will continue to lose out.

"The Government must take immediate action to fully compensate all those who lost out through their badly thought-through tax changes. Hard-working, low-paid people should not have to suffer any longer from this Government's incompetence.