1.1 million still losing out in Chancellors by-election budget - Alcock

11.28.00pm BST (GMT +0100) Fri 16th May 2008

Local Liberal Democrat Parliamentary Spokesperson for Oldham West & Royton, Mark Alcock has accused the Government of panicking over plans to tackle the 10p tax cut fiasco by rushing in measures.

"Clearly this action has been driven more by panic over the prospect of Labour losing the Crewe and Nantwich by-election next Thursday, than by a clearly thought out policy. This is illustrated by the fact that this u-turn still leaves 1.1 million of the lowest paid workers, many in Oldham Borough, losing up to £100 each." This is a short-term fix for one year only, said Mark Alcock.

In the Oldham Chronicle on Wednesday 14th May, the Labour MP for Oldham West and Royton Michael Meacher MP said: ..."I am sure that this is the right thing to do. It virtually compensates everyone and it is a huge relief to the Labour party and the package is universally welcomed."...

Mark Alcock said, "1.1 million people earning between just over £6,500 and £12,800 will still losing out under Labour's doubling of the 10p rate."

"I don't believe that the many residents of Oldham Borough who are low paid and losing £100 each will agree with Mr Meacher."

"This leaves you with no confidence that this Labour Government knows what it is doing"

Ends

Notes to Editors:

1. Even after today's announcement, 1.1 million people earning between just over £6,500 and £12,800 will still lose out under Labour's doubling of the 10p rate.

2. Of the 1.1 million people losing under Labour's current plans, some will still lose up to £100 per year.

3. Of the £2.7bn spent on increasing the personal allowance, only around £630m - less than a quarter - will actually go to the 5.3 million people who lost out under the 10p rate, making it an extremely poorly targeted policy.

4. This additional spending will mean that net government borrowing for this year will rise to £45.7bn, a 6% increase from what was predicted two months ago and a 50% increase from what was estimated just one year ago.