THOUSANDS OF SOLIHULL RESIDENTS HIT BY TAX GRAB

3.21.29pm UTC (GMT +0000) Mon 14th Apr 2008

Solihull MP, Lorely Burt today hit out at the Chancellor of the Exchequer for bringing in tax changes that have increased income tax bills for thousands of residents across the borough.

On 6th April, Labour doubled the starting rate of income tax from 10p to 20p in the pound. Previously, a 10p rate was paid on the first £2230 of taxable income. As a result, instead of taking £223 in income tax on this portion of people's wages, the Government will now be taking £446.

Though the standard rate of income tax has been cut from 22p to 20p in the pound, a single person with no children would have to be earning over £18,500 to be better off under the tax changes.

Mrs Burt has pledged to support a motion by Liberal Democrat colleagues in parliament calling for the changes to be reversed.

Lorely Burt MP said:

"Thousands of residents on lower incomes in Solihull are now receiving sharply increased tax demands at a time when the economic downturn means that they are more stretched than usual.

"Those people who counted on Brown being more sympathetic to those on lower incomes than Blair must be sorely disappointed.

"I had hoped that Ministers might have come to their senses and announced a u-turn on this policy gaffe but they seem to be intent on pressing ahead with this deeply unfair change.

"Gordon Brown announced his tax grab a year ago. But in that time Labour has done nothing to reduce the impact of their tax demands. It seems the Government has totally lost touch with the reality of ordinary people's lives."

Notes

Those worst hit by the tax changes include:

• A single person with no children earning less than £18,500 will be a net loser, by up to £232 a year.

• People taking early retirement with a taxable income of less than £8,000 will lose, by up to £232 a year.

Liberal Democrat plans to cut the tax burden for those on low income include scrapping council tax and replacing it with a local tax based on ability to pay, and cutting the standard rate of national income tax by 4p in the pound, paid for by closing tax loopholes used by the wealthy and by increasing green taxes, such as the duties paid by the most polluting vehicles and those who travel in the most polluting aircraft.