Labour tax bombshell is "reverse Robin Hood" - Randerson

12.00.00am BST (GMT +0100) Wed 23rd Apr 2008

Speaking ahead of an Assembly debate today (Weds) Welsh Liberal Democrat Finance spokesperson Jenny Randerson AM called on the Labour Assembly government to acknowledge the devastating effect of doubling the 10p tax rate on the poorest in Wales

Jenny Randerson AM said "The changes in the tax rate introduced by Gordon Brown have seen those on low incomes paying double on the first £2230 of taxable pay, with an increase from 10p to 20 in the pound. At the same time - the standard rate of tax has dropped from 22p to 20p in the pound making those with higher incomes better off.

"The Labour party in Westminster has dropped a tax bombshell.

"Figures show that 5.3 million taxpayers across the UK are worse off under the changes and could lose up to £232 a year.

"Labour are acting like a reverse Robin Hood, stealing from the poor to feed the rich. By taking money away from the poorest in society Labour has lost credibility as a 'progressive' or 'redistributive' party. Traditional Labour voters will not let this go by unnoticed, and Labour will pay at the ballot box next Thursday."

Notes:

The debate takes place this afternoon and has been tabled by the Welsh Liberal Democrats. The motion reads:

To propose that the National Assembly for Wales:

1. Notes with concern the effects of:

a) doubling the 10p income tax rate;

b) spiralling consumer debt;

c) the credit crunch; and

2. Believes these will have an adverse impact on the people of Wales and the Welsh economy.