10p Tax Band

All Parties have myths about themselves and myths are really important for mobilising the activists during general elections.  One of the central myths of the Labour Party is that it cares about the poor. 

Of course, while I use the word myth, myths have some real identity; and with the Government abolishing the 10p tax rate, and not compensating the millions upon millions of lower paid workers who lost out under this move, really showed the Labour Party here in Parliament in a new light.  With almost no organisation at all, enough Labour Members of Parliament convinced the Government that this was a Rubicon they were unwilling to cross.  As a result, the Government made major concessions. 

The sad fact is, that although they came up with £2.7 billion of taxpayers’ money to finance a compensation scheme, the scheme left at least half of those affected inadequately compensated.  So that campaign will return when we get our next chance; and that next chance is in the budget this year.

On 7th July 2009, Frank tabled a motion to the Budget saying that it cannot be passed until the 10p losers have been compensated.  This amendment was defeated by the Government and brings Frank's two-year campaign on the issue to a close.  Labour has made a clear gesture away from what many believe to be the issue at its heart, protecting and advancing the interests of those who have the least in life.