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Labour backbencher slams changes to income tax

Labour MP Gwyn Prosser
Labour MP Gwyn Prosser

A Kent Labour MP says Government plans to scrap the 10 pence income band are indefensible.

Dover and Deal MP Gwyn Prosser is among a growing number of backbenchers who have criticised the move, saying it risks making some of his lowest-earning constituents worse off.

Mr Prosser was among several Labour MPs who signed an Early Day Motion condemning the changes but that was withdrawn last week.

The MP said the Government had failed to offer any assurances it would take steps to safeguard the interests of low earners and pensioners.

Anyone earning between £5,200 and £18,000 stands to lose out, depending on whether or not they are eligible for tax credits. Critics say many do not.

Mr Prosser said: "In most areas of government policy, I have constituents coming in to see me to say they are going to be adversely affected and I am able to put it into context and defend it.

"But not in this case.

"When someone writes to me and tells me they have done everything the Government has asked of him and got back into work but now faces paying more tax, I cannot argue with him."

Despite raising the issue several times with ministers, including the Chancellor Alastair Darling, nothing had been done, he added.

"I applaud what the Government has done in helping people back to work but the facts are that single people and some pensioners are being stung unfairly and that is not what a Labour government should be doing," he said.

Ministers were wrong to expect people would accept they should pay more just because overall, more people were better off, he added.

"You cannot tell a pensioner who is worse off that he or she must look at things in the round," he said.

Asked if he intended to vote against the government when the measure comes back to the Commons, Mr Prosser said: "I would have some difficulty in voting with it."

A report published by the Treasury Select Committee on Monday warned the "main losers" could be deprived of as much as £232 a year.

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