Dundee LibDems say Labour still failing low earners (Dundee Liberal Democrats)

Dundee Liberal Democrats <info@dundeelibdems.org.uk>

Dundee LibDems say Labour still failing low earners

May 14, 2008 2:04 PM

Vince Cable MP

Dundee LibDems today (Wednesday 14th May) said the Labour Westminster government has failed miserably to properly compensate low paid workers who lost out when the 10p income tax rate was abolished.

Liberal Democrat Shadow Chancellor, Vince Cable MP said, "This Government's tax policy has descended into a complete farce.

"The abolition of the 10p rate was designed to help Labour win the election that never was. Now this by-election budget is designed to help them cling on to Crewe in next week's vote.

"The Chancellor is desperately trying to backtrack from the disastrous decisions of the Prime Minister but has still hasn't managed to get it right. This u-turn leaves 1.1 million of the lowest paid workers losing up to £100 each.

"We can have no confidence in either a Prime Minister or a Chancellor who continue to make tax policy on the hoof, while still leaving the poorest out in the cold."

Here in Dundee, LibDem City Councillor for Strathmartine, Cllr Helen Dick, added, "Even after the Chancellor's climbdown announcement, 1.1 million people earning between just over £6,500 and £12,800 will still lose out under Labour's doubling of the 10p rate.

"Of the 1.1 million people losing under Labour's current plans, some will still lose up to £100 per year.

"Of the £2.7bn spent on increasing the personal allowance, only around £630m - less than a quarter - will actually go to the 5.3 million people who lost out under the 10p rate, making it an extremely poorly targeted policy.

"Labour has completely failed low earners."