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The Prosser Perspective.... a weekly column from Dover and Deal MP Gwyn Prosser

1 May 2008

If you’ve never made a mistake it’s likely you’ve never made anything and never done very much.

The Government has done lots of good things over the last 11 years to fight poverty, improve public services and create a fairer society but no one can deny that there have been some mistakes along the way and my constituents in Dover & Deal have never been slow to bring these to my attention.

I don’t always agree with them of course but up until the argument over the 10p tax band I’ve always been able to put up some kind of credible defence for Ministers even when I’ve felt that they were getting it wrong. For instance, I thought Tony Blair was getting it very wrong when he wanted to support the invasion of Iraq and that’s why I felt forced to vote against my own Government and against going to war. However, despite my strong opposition I was still able to appreciate the other side of the argument - but not so with the damaging 10p decision.

The consequences of abolishing the 10p tax band for low earners without countermeasures was – in my view – indefensible and it seems I’m in good company because not a single Minister has been able to offer a defence that would sound credible to those of my constituents who are already on low incomes and are now having to pay more tax.

I first raised my concerns last year, as did other labour MPs and we were of the opinion that the Government would respond to our lobbying pressure and find a way of correcting or ameliorating the damage during this years Budget but no improvement was forthcoming and after raising our continuing concerns directly with the Prime Minister and having failed to solicit a favourable response, we tabled a further Parliamentary motion.

I didn’t join the Labour Party to support higher taxes for lower earners, it’s not what Labour should be doing and that’s why I signed up to the motions calling for compensatory measures.

When the Labour back bencher, Frank Field tabled his amendment I told the Chief Whip and the First Secretary to the Treasury that I’d be opposing the Government and voting for the rebel amendment unless Ministerial assurances were given that the problem would be redressed.

I’m very pleased that the Chancellor has now seen fit to provide such assurances and my colleagues and I did not have to vote against the Government after Monday’s debate. No one expected that the 10p tax band would be reinstated and both the Tory and Lib Dem Front benches made it clear that they would not do so either.

But the issue is not wholly resolved. We need to see and approve the details of the compensation package before the Finance Bill is passed and if it falls short of expectations Minister’s know that we will have another opportunity to express our opposition when the Bill comes back to the Commons in June – which is likely to focus their attention.