HOLMES CRTICISES CHANCELLOR FOR FAILING TO RECOMPENSE EVERYONE EFFECTED BY 10p TAX RATE - 13-05-2008

Speaking in Parliament this afternoon Paul Holmes, Liberal Democrat MP for Chesterfield challenged the Chancellor over his continued failure to recompense all those lowest earners hit by the abolition of the 10p Tax Rate.

Paul told the Chancellor:

"I welcome your partial attempt today to undo the damage inflicted on the poorest by the previous Chancellor [Gordon Brown] but I note that at least 1.1 million of the poorest, including many in Chesterfield, will still lose out."
"Can I ask again the question I put three weeks ago?"
"Why did the Government take over a year to realise the damage their tax plans would do?"
"Did they not analyse the figures last year and know what was going to happen to 5.3 million low earners?"
"Or was it a cynical belief that they could do what they liked to the poorest and they would still vote Labour?"

Speaking afterwards Paul said:

"Under today's plans the Chancellor himself admitted that 1.1 million of the lowest earners would still lose out financially. That the others would receive only an average level of compensation via having their tax allowance increased and that NO ONE would receive any money back at all until next September."
"This is still not acceptable. These are the poorest people. A few pounds a week can make all the difference to how they manage their budget. And yet they will get not a penny back until 6 months after the Government took money away from them."
"I will continue to campaign for a full refund to these people who are the most in need."

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