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Govt survives Tory income tax challenge in Commons

29/04/2008

A Conservative amendment challenging the government's income tax banding changes was defeated in the Commons last night.

The Tories were seeking to reverse the abolition of the 10p rate but lost the vote by 307 votes to 262.

The government then successfully pushed through its proposals by 304 votes to 262, without opposition from Labour rebels placated by last week's U-turn on compensation for those left worse off.

Mr Field, the leading Labour rebel, maintained a heavy presence in the debate, however, not least when Liberal Democrat Jeremy Browne hailed him as the "star of the show".

The Birkenhead MP and former minister made clear the terms of the "agreement" he understood had been made between No 10 and No 11, including backdated compensation to April 1st this year.

But financial secretary to the Treasury Jane Kennedy, the government minister participating in the debate, was unable to confirm compensation for all groups would be backdated.