Row over 10p tax is set to affect elections
Apr 22 2008 by William Green, The Journal
LABOUR could lose political control of Northumberland as the axing of the 10p income tax rate threatens to derail its local election campaign.
Blyth Valley’s Labour MP Ronnie Campbell yesterday warned it was touch and go whether his party would maintain longstanding control of Northumberland or see the Tories take charge in what would be a political earthquake.
On public reaction to scrapping of the 10p tax rate, Mr Campbell said: “It has been negative and it hasn’t been very good for the Labour Party. It is affecting the local voting although it shouldn’t be because it is a local vote.
“National decisions do affect local elections and people should be thinking who is going to control their destiny in Northumberland.”
Mr Campbell predicted the result would be very close and deals would have to be done to get a working council, potentially between independents and the Conservatives.
The MP added that he would be happy if Chancellor Alistair Darling provided help next year for low-paid workers predicted to lose out from the tax changes, accepting an overhaul was not possible this year.
Mr Campbell’s comments came as one minister privately admitted the situation was a nightmare after being handled in a clumsy way, while Labour MPs warned it had become a damaging factor in local elections amid continuing unhappiness among party backbenchers.
Conservatives are also hoping to win North Tyneside Council, although Northumberland could yet be subject to no overall control with the public set to vote in a new countywide unitary authority within weeks. Durham City MP Roberta Blackman-Woods said the 10p tax rate row would have a negative impact, but stressed that Labour had good candidates in place for the new County Durham unitary council.
She will back proposals expected to be tabled by ex-minister Frank Field requiring compensation for low-paid workers who will lose out unless ministers act amid widespread concern about tax changes.
“I want a package in place that is going to compensate those people affected in some way and that is what we are going to press for this week and if there is no package in place, I will vote for Frank Field’s amendment,” said Dr Blackman-Woods. The Labour MP acknowledged there had been Government movement, after the Chancellor signalled potential future help.
Look at wider benefits, say ministers
MINISTERS have urged voters to look beyond the scrapping of the 10p tax band and see wider benefits introduced by Labour.
Junior Housing Minister Iain Wright, MP for Hartlepool, said the move appeared superficial but stressed that people had to look more broadly at this and previous Budgets and future intentions.
He pointed to a cut in the basic income tax rate from 22p to 20p, the lowest in 75 years, alongside increases in tax credits and allowances at which people have to start paying tax.
North East Minister Nick Brown echoed his colleague’s comments, adding that the 10p rate introduced by Labour was always a transitional measure to help the poorest while tax credits and the cut in basic income tax were introduced.
Brown will sort out problems
PRIME Minister Gordon Brown yesterday promised Labour MPs he would "sort out" problems with the abolition of the 10p rate of income tax, as he fought to fend off a backbench rebellion.
Mr Brown assured backbenchers he was listening to their concerns over the impact of the change on the poorest households at a time of rising food and fuel prices.
Less than two weeks ahead of key local elections on May 1, the PM said the party had a "responsibility to unite" and to show the electorate that "we get it".
Mr Brown told the gathering: "I understand how difficult it is when food prices and fuel prices are rising.
"It is difficult out there and I understand that. People want to know we get it and understand their anxieties."
