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Revolt grows on Brown's 10p tax and fuel duty
Joe Murphy01.07.08
The Labour revolt over Gordon Brown's 10p tax band blunder reignited today as 21 backbenchers signed a motion attacking the Government.
The MPs argue that the Treasury is still failing to help the most vulnerable people hit by the abolition of the low-paid tax bracket last year.
They say 1.1 million taxpayers remain up to £120 a year worse off despite Alistair Darling's £2 billion bail-out unveiled in his emergency "mini budget" this spring.
The 21 MPs are backingan amendment to today's Finance Bill by Labour MP David Taylor, which would introduce a taper mechanism into the £600 increase in personal allowances for income tax offered by the Chancellor.
Treasury minister Kitty Ussher has hinted that more cash would be on its way this autumn in the pre-Budget report. She said: "The action that we took a few weeks back was the bringing forward of part of the pre-Budget package."
The threatened rebellion came as Business Secretary John Hutton denied reports that he was leading a Cabinet revolt against planned rises in fuel duty.
Several other ministers had reportedly urged Mr Darling to drop immediately a 2p-a-litre rise in tax in a bid to quell anger at the price of fuel.
The Cabinet unease emerged as lorry drivers threatened to bring London to a standstill tomorrow. Protest group Transaction 2007, backed by the Road Haulage Association, plans the biggest fuel protests so far.
Lorries will be lined up along the A40 Westway in the morning and convoys of 10 to 30 lorries will drive into Parliament Square for 10.45am before leaving along Victoria embankment.
Drivers are feeling desperate with unleaded petrol at about £1.20 a litre and diesel at £1.32 or more after huge rises in the global cost of oil.
Hauliers' leader Andy Boyle said: "The price of fuel is forcing many out of business. Tomorrow's protest will represent a last-ditch attempt at making their voice heard."
The 2p fuel tax rise had been due to start in the spring but was shelved until October. Mr Darling has already signalled he will cancel it altogether if oil prices show no relief in September.
One minister said: "We won't get any credit if we wait until the autumn."
But an aide to Mr Darling told the ministers to "get on with their own jobs".
Reader views (3)
We have had 35 years to prepare for the end of cheap plentiful oil following the first crisis in 1973. However, instead of preparation we have done the complete opposite we had 200 years of coal to produce our electricity but a petty war with miners destroyed this and instead gas has been wasted in producing electricity.
We spent a fortune on privatising railways we already owned instead of a program to electrify them. A process which would have released diesel for use by those groups like lorries, fishermen and farmers who could have received the oil which the railways still use.
Ruth Kelly has recently seen the light for electric railways, problem is if the government changes at the next election how long will the conservatives take to see the light?
A change of government will only put back those who were responsible for the wasted chances so not much hope then.
At least the Sun newspaper wont need its "Will the last person to leave turn out the light!" headline as there wont be a light left on to switch off.
- Melvyn, Canvey Island, Essex
Fuel is so expensive yet again tomorrow thousands of gallons will be used by hauliers travelling to the capital.
- Colin, barking essex
On checking the price of this commodity, which is made up as follows:- Duty 50.35p Product 37.35p VAT 17.13p and retailer/delivery 10.17p, please note that these figures relate to the cost of unleaded @ 115.0p.
It should also be noted that we have to pay VAT on the duty as well, interesting?
- John Cole, Chichester UK
