Aid urged after 10p tax rate cut - News in brief - Evening Standard
       

Aid urged after 10p tax rate cut

The Government has been urged to introduce measures to help millions of low-paid workers affected by the abolition of the 10p tax rate.

The TUC warned that the impact of the tax regime on low paid employees, combined with generous tax breaks enjoyed by the super rich, was causing "huge resentment" among ordinary workers.

Compensating 5.3 million workers who have lost out as a result of this week's changes would cost the Treasury £550 million, estimated the union organisation.

Speaking to the North West TUC in Liverpool, TUC general secretary Brendan Barber said: "Across the UK, people's finances are being squeezed by rising food, energy and borrowing costs. And earlier this week, millions of low-paid workers were dealt a further blow by the abolition of the 10p tax rate.

"Global economic turbulence has left the Treasury with little room for fiscal manoeuvre, but the £550 million needed to help those who have been hit hardest by this week's tax changes could easily be raised by closing a well-known tax scam.

"When it is so clear that the growing numbers of super-rich are not paying their fair share of tax, it is not surprising that average and low-earners resent any increase in their tax bills.

"The danger for progressive politics is that this leads people to question the fairness of our tax system, which in the longer term risks undermining the pensions, benefits and decent public services that depend on fair taxes."

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