Thousands in West Wiltshire suffer tax grab - Promise of jam tomorrow is not enough

9.01.00am BST (GMT +0100) Fri 25th Apr 2008

Gordon Brown

Liberal Democrats have attacked Government offers to compensate low income earners losing out under tax changes as "vague promises of jam tomorrow".

The doubling of the 10p income tax starter rate was announced last year but was put into operation at the start of April. Labour MPs voted for it in March, but then suffered a backlash from low income people whose tax rates were doubled by Gordon Brown.

Thousands of West Wiltshire residents have been hit hard by Labour's decision to double the 10p income tax starter rate. Labour MPs, having only just voted to put this tax rise into operation, suddenly started shouting about how terrible it was.

It is disappointing that they've caved in and agreed to back the Government's last minute offer of vague promises of compensation. All that is on offer is jam tomorrow. There are no details of how the compensation scheme will work.

Having previously been told there was no money in the kitty to reverse the tax rise, the Government has failed to explain how they will pay for the compensation scheme.

And as is so often the case with this government, we should not believe it until it happens. In the meantime, those on low incomes in our area continue to lose out whilst Gordon Brown's tax rises bite into pay packets and pensions.

It is staggering that in the same week as vague concessions for some of the lowest paid people in the country were dragged out of the Government, Gordon Brown's door to Downing Street was wide open for bankers to visit him and successfully argue for a £50 billion bailout from the taxpayer to keep the banking system afloat.

Yet again the Labour Government has turned its back on ordinary people.