TUC says thanks

14/05/2008

The Trades Union Congress (TUC) has thanked the Chancellor for offering compensation to those worst affected by the government's recent abolition of the 10p tax rate.

Its decision to stop the levy brought widespread condemnation and may have contributed to Labour's recent poor local election results.

"We welcome the chancellor's statement today. He has done what he had to do to undo the damage caused by the abolition of the 10p tax band," TUC general secretary, Brendan Barber, said.

New tax rates were introduced on April 1st, which cut the basic rate of tax from 22p to 20p and abolished the 10p starting rate.

Mr Barber noted that any tax system will have to be paid for but advised the chancellor to look elsewhere for his funds.

He suggested "rather than take it from hard pressed public services or the pledge to end child poverty," he should look to the wealthy and loopholes they use to avoid paying.

Lower-paid workers are facing rising costs with inflation now at three per cent, according to the latest figures from the Office for National Statistics.

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