Income tax band changes

As parliament returns following its spring break ministers are being forced to confront growing disquiet over the 10p income tax band abolition.

The move was originally announced by Gordon Brown in his last Budget as chancellor in 2007, alongside a cut in the 22p rate to 20p and the introduction of a raft of new tax credits.

It came into force last week and opposition politicians – and now Labour MPs – are challenging it, claiming up to five million people could lose out as a result.

Approximately 70 Labour MPs and six ministerial aides are said to be upset by the changes and the government could face defeat on the issue in the near future.

Former minister and Labour backbencher Frank Field will table an amendment to the finance bill next week, ensuring the Commons will vote on the issue.

There are now reports chancellor Alistair Darling is seeking to reach a compromise on the new income tax regime, as pressure continues to grow ahead of the parliamentary vote.

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