Co-op MPs join income tax revolt

A COMMONS Early Day Motion critical of Gordon Brown’s decision when he was Chancellor to scrap the 10p income tax rate has been signed by a number of Labour/Co-op MPs.

The change, announced in last year’s Budget, has only come into effect now and critics say the measure will leave many childless low income households worse off. 

The EDM — tabled by Labour back bencher Katy Clark and supported by dozens of MPs — highlights a report compiled by the Child Poverty Action Group, among others, and urges the Government to change the tax regime to ensure that people under 60 and earning less than £18,500 are not penalised by the new arrangements.

Signatories of the all-party motion include Co-op-sponsored MPs Ian Davidson, David Drew, Linda Riordan, Ken Purchase, David Taylor, Jim Dobbin, Doug Naysmith and Andy Reed as well as former minister Glenda Jackson and one-time Labour leadership candidate John McDonnell. 

And rebel MPs have been supported by the influential Treasury Select Committee, chaired by Labour/Co-op MP John McFall.

A report by the committee confirmed that the changes would leave many low income childless households worse off and said the people affected are “an unreasonable target for raising additional tax revenues”.

It is understood that Labour critics of the move to end the 10p income tax band will table an amendment to the Finance Bill when it is discussed in the Commons later this month. 

Meanwhile a separate Commons EDM has paid tribute to lifetime co-operator and socialist Sir Richard Knowles who died recently at the age of 90.

The EDM, tabled by Birmingham MP Richard Burden and signed by Labour/Co-op MPs Ken Purchase, Jim Dobbin, David Taylor, David Lepper, David Drew and Doug Naysmith, pays tribute to Sir Richard’s contribution to the transformation of Birmingham and applauds his “unceasing commitment to the ideals of the Co-operative and Labour movements” and his “tireless campaigning for social justice and local democracy”.

Other signatories include former ministers Clare Short, Geoffrey Robinson and Gisela Stuart and current Home Office minister Liam Byrne, all Midlands MPs.