SNP MSP Bob Doris has today welcomed Gordon Brown's pledge to 'look again' at the impact of his decision to increase taxes for over 40,000 of Glasgow's poorest workers, but condemned the cut which will affect over 324,000 workers Scotland wide from Sunday April 6th.

Faced with a rebellion by 30 Labour MP's who signed an EDM by Greg Pope MP criticising the abolition of the 10 pence lower rate Gordon Brown gave his 'look again' assurance. As a result the EDM has today been suspended.

Mr Doris has highlighted figures showing 324,000 people in Scotland or 12% of all Scottish tax payers paying only the 10% rate, will see their tax double this week when the UK Government puts up taxes for low earners from 10% to 20%.
 

Research by the Institute of Fiscal Studies shows those earning up to £18,500 per annum will lose out.

The tax hike, put in place by Gordon Brown, comes into effect in the same week the SNP delivers on its promise to freeze council tax and to cut prescription charges.

Mr Doris, Regional MSP for Glasgow and member of the Local Government and Communities committee which is currently looking into poverty issues in Scotland said;

"Words from Gordon Brown are cheap but his decision to abolish the 10 pence rate from this Sunday will be very costly for over 40,000 of the lowest paid Glaswegians and 324,000 people Scotland wide. Despite Brown's words this tax hike will go ahead. The Labour rebels have been bought off very cheaply indeed.

"This New Labour policy is all about giving tax cuts to the wealthy at the expense of poor families across the country. Whilst the Scottish Government is looking at tackling child poverty and attempting to meet the 2020 target to eradicate it, the UK's Labour Prime Minister has taken action which could make matters far worse.

"This tax hike from Brown and Darling  will effect the most needy and vulnerable. This appalling tax on the poor must be reversed. I condemn it and its time Scottish Labour MP's do the same. Only 2 Scottish Labour MP's bothered to sign the rebel Early Day Motion and unsurprisingly no Labour MP from Glasgow has signed it. Yet again they have failed to stand up for the people of Glasgow.

"Only last weekend Wendy Alexander tried to claim Scottish Labour were socialists. I think somebody better sit her down in a quiet room and explain the concept to her. Socialists don’t attack low earners. Only by returning all tax raising powers to Scotland can our citizens escape New Labour's right wing agenda which targets the poor".

Notes:

• In the 2007 budget Gordon Brown scrapped the 10% starter rate of income tax from April 6th 2008. The 10% rate applied on the first £2,230 earned above the income tax allowance (£5,225 in 2007).
• At the same time the 22% tax rate was reduced to 20%.
• Scrapping the 10% rate will raise £8.6 billion. · Cutting the 22% rate by 2% will cost £9.6 billion
• According to the Institute for Fiscal Studies those earning between £5435 and £18500 will lose out.