Press releases > 10% Tax Rate
Budget - Bring Back 10% Tax Rate  (March 10th 2008)

North Thanetís MP, Roger Gale, is calling on Chancellor Alistair Darling to re-introduce the 10% tax band when he makes his budget statement on Wednesday.

Speaking at the House of Commons today (Monday 10th March) the MP said:

"I have just received a letter from Work & Pensions Minister Mike OíBrien asking me to help explain to my pensioner constituents how they can claim all of the benefits that they are entitled to.

In the same post I have received letters from pensioners on modest occupational and State retirement pensions pointing out how much worse off they will be when the new tax bands come into force.

On All Fools Day, perhaps appropriately, the lowest tax band will rise from 10% to 20%.  This is going to mean an increase in taxation for those at the bottom end of the scale while those earning £40,000 a year will be getting on for £500 better off!  We are all aware that the Chancellor takes, through income tax and stealth taxes, far too much of our money but to penalise some of those on the most modest incomes cannot be right.

I wrote to the Chancellor about this in mid-February. I have yet to receive a reply but I will happily settle for a re-adjustment in the Budget statement.

While on the subject of Give and Take I would also like to see the Gift Aid contribution restored to its former level of 28%.  The Treasury's cut to 22% is going to make a significant difference to the amount of money available to charities for work at home and overseas.  We know that the Chancellor is strapped for cash and is either going to have to borrow more or tax more to fill the "black hole" created by Gordon Brown but hitting some of the oldest and poorest in the country cannot be a proper response."

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