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Brown under fire over income tax climbdown

23/04/2008

Gordon Brown faced a sustained attack from David Cameron following the government's income tax rate change "U-turn".

Mr Cameron said the prime minister had suffered a "massive loss of authority" after chancellor Alistair Darling announced plans to compensate those losing out from the scrapping of the 10p income tax starting rate this morning.

The Tory leader said "panic concessions" had been introduced only because Mr Brown had been "frightened of losing the vote" on Frank Field's rebel amendment next Monday.

"Doesn't this climbdown tell us all you need to know about this government?" he asked.

"It is always about politics, not about policy. It's always about calculation, not about conviction. It's always about his self-interest, not his national interest."

In response Mr Brown sought to contrast the Conservatives' plans for £10 billion of tax cuts, hurting the poor, with Labour's record in government of increasing tax credits, benefits and the minimum wage.

"The choice is very clear – between a Conservative party that would cut the incomes of the poor and a Labour party that would increase them" he said.

"I know what side the country is on."

Mr Brown also attacked the Conservatives for their own inconsistency on the 10p starting rate, which was supported by the leading opposition party in 2006.

"They are the 'no', 'don't know', 'yes' party – they cannot make up their mind what they want to do," the prime minister added to cheers from the government backbenches.

"We have been consistent in our desire to tackle child poverty."

Mr Cameron responded scathingly, describing the "pathetic figure" cut by the prime minister.

"He is making these changes because he thought he'd lose the vote – he's not making these changes because he thinks they're right."