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GORDON BROWN was warned last night that he faced a second election disaster unless he made further concessions in the row over the abolition of the 10p income tax band.
In the wake of Labour’s worst local election performance in 40 years and Boris Johnson’s historic triumph in London, the prime minister has been told that he now faces Labour’s first by-election loss to the Conservatives for 30 years.
Amid signs of Brown’s weakening authority, his party delivered the blunt message that unless he improves his performance by autumn, he could face a leadership challenge. One Labour minister said Brown had received a “final warning from the British people”.
Brown is meeting advisers at Chequers this weekend to devise a “relaunch” aimed at seizing back the political initiative. The prime minister and his aides are drawing up an urgent rescue strategy focused on restoring his reputation on the economy.
Among the sweeping changes being discussed are the scrapping or delaying of unpopular tax rises, including the planned 2 per cent rise in fuel duty due this autumn, and controversial rubbish taxes.
The Treasury is not ruling out an emergency statement on the economy to highlight the plans before the summer recess.
In television interviews today Brown is also expected to address public anger over food prices, promising to ensure supermarkets do not break competition laws.
Cabinet ministers were yesterday engaged in a mass ring-round of panicking backbenchers to shore up Brown’s sinking support.
Many are openly voicing concern that Labour cannot win the next general election while Brown remains in charge.
The prime minister will face further assaults from Labour critics this week as MPs return from the bank-holiday break to take stock of the party’s electoral humiliation.
Frank Field, who led the successful revolt against abolition of the 10p income tax band, which penalised millions of low-paid workers, warned that Labour would now be defeated in this month’s by-election in Crewe and Nantwich unless Brown issued urgent clarification on the tax issue.
Two weeks ago Brown promised he would compensate groups who lost out from the tax changes, but failed to provide details of the new benefits package. The lack of a clear statement left core Labour supporters confused and worried, prompting many to stay at home or vote Tory last Thursday.
Now the Labour rebels are to renew the pressure on tax by putting down a Commons motion on Tuesday calling for Brown urgently to issue details of the compensation package for low earners.
Field, a former welfare minister, said: “I find it incomprehensible that he cannot get a few sentences put together saying,
‘I am going to move every muscle in my body to find ways of making the package as comprehensive as possible and every bit of it will be backdated to April 5’.”
The last time the Conservatives took a Labour seat in a by-election was at Ilford North in 1978, a harbinger of their 1979 general election victory. They have not gained a single parliamentary seat in a by-election since 1982.
In the by-election on May 22, triggered by the death of Gwyneth Dunwoody, Labour is defending a majority of 7,078. In the past this would have been considered a safe seat, but Field says Labour will lose unless Brown acts fast.
“One of the big questions that the candidate will be asked is: what is the policy on 10p? And what is the candidate going to say?” Field said.
Downing Street sources said there were no current plans to give in to Field’s demand.
A draft Queen’s speech to be published this month is expected to include a new system of incapacity payments encouraging claimants to look for work, and to extend GPs’ surgery hours.
Few MPs want Brown to quit now, but if the party’s position deteriorates by the time of the annual conference in September, a leadership challenge will become more likely. Greg Pope, MP for Hyndburn, said: “Gordon is going to have to get his act together, otherwise things could be very different by the autumn.”
Ivan Lewis, the junior health minister, said voters had “plunged a dagger into the heart” of the Labour party, while John Denham, the universities secretary, said Brown faced an uphill struggle to appease “southern discomfort”.
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Not everything is going up - NuLabour is going down lead by Mr Brown
Mike, Gravesend, England
Hi Ashley of Hereford
The reason GB did not mention the over 65s is because in this last budget the Chancellor gave the over 65s a much higher personal tax allowance, which meant that those pensioners aged 60 to 64 were left out - about £4,000 pa less than the over 65s.
Dee, Mickleton, Gloucestershire
Have your say 20 March 2007 I posted the following :-
'One question which should be put to Mr Brown repeatedly until we get a clear and specific answer : " Where has all the money gone that you have taken off the taxpayers in your many stealth taxes since 1997 ???????" Since then more deceit!
Reg Parke, Larne, UK
If Brown actually got out and spoke to the Average Jo he would realise that it is not the economy that make most people incandescent - it's Iraq, Afghanistan, immigration and the total disregard this government has towards over-crowding and the cultural vandalism inflicted by his party.
Oxford Don, Oxford, UK
For 10 years Brown was happy to take the credit, even though it was entirely due to benign global markets and absolutely nothing to do with him. In fact, it was DESPITE his flawed policies. However, now that the financial landscape is not quite so kind, it's the GLOBAL downturn and not HIS fault !
Robert Grant, Bath, UK
Another thing that people and commentators dont seem to have noticed is the sinking pound which causes food and fuel prices in the UK to soar. The good ship GORDO will therefore get another hit below the waterline when people return from their holidays on the Costas later this year.
Mike Griffiths, Anglesey, UK
So Gordon, if you are listening, call a general election. Then things can only get better...
Paul, West Midlands, UK
Gordon Brown is the Arthur Daley of politics, who would buy or accept polices from a second hand prime minister.
David Rumsby, Croydon, United Kingdom
Brown does not seem to understand that he is responsible for the economic mess of this nation; it is not just the 10p starting rate of taxation but the various and nefarious stealth taxes that have punished the poorest and lowest paid and those on fixed incomes over the last decade.
Kenneth Armitage, Suffolk, England
I'm a working single parent on low income. I don't take any benefits, because the questions youhave to answer are humiliating. I won't take the 10% tax benefit 'compensation package' either. Why should I answer personal questions to get my own money back.? Gordon, go!
D Duquet, London, UK
It isn't just the tax etc. There is an underlying frustration in the land: overregulation (eg the Data Protection Act, Health and Safety); bullying by government of soft targets(eg parking fines, fines for not filing tax returns on time); failure to tackle more serious crime and the like
Colin Ashley, Cumbria, UK
Don't think Brown and Co. will give us (low paid workers) back what they have stolen from us to give to the better off . I am £43 a month worse off (£516 a year) while my overpaid managers are hundreds of pounds a year better off. This is Brown's poll tax! he always knew what he was doing.
Ian, london,
I watched Gordon Brown on the Andrew Marr show this morning and he continually pledged himself to work for the hard working British people.By taxing the life out of us.Is there a Government that is going to save money instead of spending as if there is no tomorrow
Archie McLachlan, East Kilbride, Scotland
I have been a life long labour voter and I really feel the part has lost its direction. This view is wholly based on the scrapping of the 10p tax band. I think labour has lost touch and Brown dithers and cannot lead. The liberals will have my next vote unless Labour sorts out their act.
Gareth Jenkins, Pwllheli, UK
The hidden crime is the effect the 10p tax issue that this will have on low paid workers with no children, like myself. if we are to claim back what we have lost you can bet your last penny it won't be easy. However the panicked public will now vote Conservative forgetting they are just the same....
veronica aldous, Croydon, UK
Gordon Browns big mistake was to claim that his Dad was better than our Dad. Unfortunately we couldnt vote for his Dad.
Brian Christley, Abergele , UK
labour a spent force, conservatives following the blair blueprint for power with an accompanying policy vacuum. lib dems, c'mon, lets be serious.. Where is the creative alternative in british politics? and by this i dont mean one that advocates hate...
zugerman, zurich, switzerland
Brown is unelectable as Prime Minister and the good folk of Fife may decide they can no longer tolerate him as MP. The New Labour Project destroyed what was the Labour Party and they are so arrogant and detached from the effects of their policies they cannot comprehend the anger against them.
Paul, Coventry,
Just seen GORDO on Andrew Mars' BBC 1show this morning.
He cannot grasp that people do not want to rely on the state for eveything - from tax credits to pension credits to child trust funds. We are not a nation of form fillers and suplicants. Now they have spent it all & there's no money left.
David Nammory, Liverpool,
We seem to have forgotten what regan and Thatcher found by reducing taxes. Innovation went up and revenues exploded. The fiscus had lots of money. Instead of the stragle hold that Gordon Brown is loading onto Britain we need less taxes. Less taxation attracts business. Over taxation strangles.
Jas, Alders, UK
Never mind ' Listen and learn ': Listen and LEAVE !
R.M., London, England
We need a General Election not another speech from Mr Brown. Tax on Tax. Gordon never learned that the British are great innovators and this needs marshalling. Margaret Thatcher and Regan reduced taxes and increased the Governments income. Gordon just hasn't learned he is wedded to high TAXATION .
Jas, Alders, UK
Report that the Government has said low-paid workers and pensioners aged 60-64 would recieve compensation backdated to the start of the financial year when the change comes into effect...................What about pensioners 65 and older?
Ashley, Hereford, UK
So instead of being able to stand up and count ourselves as honest, hard working tax-payers, it is proposed that those of us on low wages will be in receipt of a benefits package? What does that do for morale and self-respect? Bad enough to have limited income without having to line up to receive benefits when you have struggled to be independent and contribute to society. Well done Labour, you know how to kick a dog when he is down.
Christine, london, uk
Am I daft? If the treasury get rid of the 10p tax band and then compensate those who suffer then what is the point in doing it?
Tom, huddersfield, uk
Brown loves to spend our hard working taxes -
The 10p tax - Will the people on benefits also get a reduction - at least we work for it!!
The DWP site shows that Brown spent £1,226 BILLION in benefits over the past 10 years and £1.5 billion on Legal Aid to immigrants - Plus all the rest wasted.
Margaret, Bristol, UK
The maths are simple Gordo. To recompense 100% those affected by the 10p rate abolition will cost more than leaving it in place. The reality is you callously taxed the poor out of spite, ignorance or just plain incompetance. Whichever, the country has you marked and theres no where to run anymore.
Mike, Alicante, Spain
I don't think it's actual policies that are the problem for Brown. I'm affected by the 10p issue but I don't mind too much because I know I'm not poor. His problem is the continual spin, sleight of hand, selective use of data and quotes, lack of transparency, etc. I can't trust someone like that.
Phil Jones, Swansea, UK
forget the 10p tax band. Start worrying about PFI and the amount of oil and gas revenue that has been wasted over the last ten years. Its also about time somebody started to ask questions about the money being spent on 'consultants' and who they are.
There is a stink of corruption about this gov.
johnerog, Blaenau Gwent, wales
When will you voters wake up to the fact that voting labour votes for hight taxation!!!
brian, sutton coldfield, UK
i'm a pensioner. I had an increase 3.64 per week on my pension. The tax on my small private pension went up by 16.91 per month, which is 3.90 per month, so I am 26 pence per week worse off. The richest 100 under Brown have had their wealth increased by 15%. Thank you Mr Brown
D.Davies, Torremolinos, Spain
Blair killed off the Labour Government, well before Brown took over. If the Labour Government think that by replacing him they will then become re-electable then they've got another think coming. We're fed with over taxation and reneged promises by overpaid and grasping politicians. Goodbye Labour!
Trevor Dee, Torbay, UK
Initutive is killed by over taxation. This is why we need another government to look at things afresh. Thatcher & Regan did. If you kill the Goose then forget about tax. When an innovator like Dyson is leaving because of tax we better think. Save fuel:
www.toamazing.com/fuelcell4 truckers.html
Jas, Alders, UK
labour are rightly indignant over the 10p issue, but do not forget the abolition of student grants,the massive additional spending on a scottish parliament building and the higher pro rata ,spending on the scots.
while the pension raid by brown is an issue that affects everyone with a uk pension.
john haydon rowe, javea,
The 10 p tax band is no red herring. It means that my pension has gone down £20 per month and I cannot afford that at all.
But worse is the arrogant bullying way that this government went on to say it will not be changed.
I still dont know what is to happen!
Edwin Allan Robson, DERBY,
Mr Brown would not have tax us so much of he stopped giving the EU£12 billion a yr for 13 yrs 95%of which is unnacounted for according to EU auditors. He destroyed £100 billion pension ind., Tax on tax for fuel, spent £100 billions saving aMortgage Bank, couldnt give Rover a few millions. Brown Go!
Jas, Alders, UK
No matter if you are rich or poor, for just how much longer can we indure a tax system that is so unfair?
Clive, Dartford, UK
Fiddling around making concessions to those hit by loss of the 10p tax band will just make a complicated tax/welfare system worse. I bet the concessions will be one-off payments designed to buy off his critics. He cld and shd just raise tax allowances. Last budget shd be cancelled and start again.
Donna Walker, Effingham, England
The Brown TAX, TAX, TAX, chickens are coming home to roost with a vengeance.
Neil, Gloucestershire, England
All this wasted effort about "Listening" and "a fight back". The electorate have said "go now!" not "we are putting you on notice". Labour were finished when they appointed the hugely unpopular Harperson as Deputy Leader and then who does Brown put up first to defend them....he just doesnt get it
Ken, Derby, Uk
Can you hear the sound of the deck chairs being rearranged on the Titanic? The reason that GB is unpopular is that he has treated the middle classes as a cash cow, milking every penny he could via indirect taxation. This was always going to be the case...student loans, pensions, NI, 4x4, stealth tax
Mike, Cheltenham, UK
http://www.communigate.co.uk/ne/revoltingpensioner/index.phtml
No more to be said !
Visit this site for UK Pensioners Grumbles.
B.W.Moore. Mr., Stockton on Tees, UK
Whilst i agree that the fuel tax and 10p tax band abolition are big issues, I don't think you can honestly campaign for their abolition unless you state how you will make up the deficit, or state which depts the cuts in spending will come from.
Reducing benefits for the workshy and the skivers on long term incapacity comes to mind, but Labour unlikely to do this.
Rees, Aberdare,
Governments always forget that they should take extra care in increasing tax
on things that affect us all especially when the increase is deemed unnecessary on an already overtaxed commodity
Time and again, they forget that motorists are voters too.
So if they increase duty on petrol and road tax we all feel it and we know the best way to compain about it.
And thats what happened last Thursday!
The 10p tax band removal is just an enormous red herring
Jonathan , Didsbury, Gt Manchester
Gordon is strangling the life out of the very source of all his tax money THE PEOPLE !!!!
mike, brodgend, mid glamorgan
The sooner he and his inept champagne socalist Governmnet go the better.New Labour: Taking from the poor to give to the ultra rich.
R Moseley, Birmingham, UK
The message was coming from the voters that they were disliked the abolishing the lower 10p Tax, the cost of living and this was very loud and clear from the people. After all, it was a protest vote from the people who has disliked the direction we are moving after 11 years in power.
Jose, London, UK
This by-election is for Labour's 203rd safest seat.
If The local results were repeated at an election this seat (and 45 safer seats) would fall to the Tories.
Hence the Blitz organised to 'fight back'
John Wood, Hull, UK
Everything Mr Brown announces involves extra,hidden, tax.
The 10p tax level is just another example and not the main issue.
Give the country a break and show leadership start wih capping tax on fuel
Mike, Gravesend, England
Poor old gordon he has painted himself into a corner on tax with his lack of vision he cant blame blair cos he has gone so its all down to brown and we have just seen the public response.
To save any dignity at the 2010 election brown must go and a caretaker put in to manage the defeat.
mitch, Wolverhampton, England
Absolutely right, Thomas Goodey:
a) There was never any successful Field 'revolt'. He collapsed too soon and everyone can see that Field is either naive or is a plant.
b) Labour is delusional if they think the reason for their drubbing is restricted to abolition of the 10p tax rate;.
Edwin, Bucharest,
The scrapping of the 10p tax band is New Labour's poll tax. The population will not stand for another army of civil servants to manage the "concessions". Simpler for Brown to acknowledge his mistake and repeal the new changes. The rebellion will not abate until the band is reinstated in full.
Dwight Vandryver, Scholar Green, Cheshire, UK
Everything Mr Brown announces involves extra tax.
The 10p tax level is just another example and not the main issue.
Give the country a break and show leadership start with capping tax on fuel
Mike, Gravesend, England
Macuistean, I will be glad once Scotland is kicked out of the Union. That will pretty much guarantee Conservative governments
Wilbur Watson, Bangor, Wales
NuLabour started to thieved from the British people in 1997 when they removed the tax credit from pension funds.
They have continued their thieving ways right up to May 1st and beyond.
NuLabbour will never change and it is a great pity it has taken the British public so long to discover this.
Mike O' Connor, Plymouth, uk
I look forward to a General Election. We in Scotland have a great government waiting to govern our country as an independent state. Good luck England with your choice.
Macuistean, Isle of Tiree, Scotland
Keep your nerve Gordon and we'll be okay.
andy McPherson, London, United Kingdom
Keep your nerve Gordon and we'll be okay.
andy McPherson, London, United Kingdom
They still dont get it, 10 p isn't the issue, its one of many but the issue is that no one voted for him as the prime miinister outside the labour party. He isnt our leader, he should ask the electorate for a mandate for him to implement his vision for the uk. Until he does he will continue to fail
James, Southampton,
Labour will not lose the election for Crewe and Nantwich on the 10p tax issue. It will lose it on mass immigration into the town and the fact that if you check on the jobcentre plus site nearly all the advertised jobs are now on or just above the minimum wage as a result .
Larry, Crewe, Cheshire
The British public have had a gut fool of the ever increasing tax take and weve said a collective enough is enough! If he thinks bringing back the 10p tax rate will be enough to placate everybody then he is wrong. Theres the fuel duty to contend with along the new road tax and stamp duty.
John, London,
Gordon, you have lost the plot. The people have have had there say and you are no longer fit to rrule the country. Do the right thing and call a genreal election.
Gordon must realise that the tax payers of this country pay his salary and he is a public servant he must act on what they say.
John, Wolverhampton, UK
The 10p tax row will be NOTHING compared to the ticking time bomb of the new road tax system that starts 2009.
Labour's core supporters tend not to drive new low emission company cars. They'll be furious with huge increases in road tax (mine 50%).
Brown is about to shoot his other foot...
Ted, UK,
joevery labour MP seems to think they lost because of the 10p tax rate. Non of them acknowledge lying about inflation, their expenses, state of the economy etc. I could write a book, tories are no better though. If you dont vote it affects your credit rating, so WE the public cant win. Lib Dem it is
John Pickle, london,
Brown thinks it is just about the economy what about gun crime. knife crime, asylum seekers not being able to deport terroists the human rights act, petrol, food and many other things the man has the face of failure and can not be trusted
John, Carlisle, England
i dont like gorden brown but you have to remember all the things that labour have sought to achieve whilst in power and all of them relate to the poorest in society: accidentally the conservatives handed over an economy with promise which actually kick stated the 2000 boom.
grs, newmarket, uk
The media keeps on peddling the line that Labour's election defeat is a 'final warning' when its no such thing. Its the beginning of the end, Brown is gradually being given the sack and nothing will change that fact. The time for listening, for concessions and election winning passed 6 months ago,
John Pickworth, Blackpool, UK
Brown is an unpleasant personality, visually and character-wise and can never win the English vote. Superficial as this may seem, the voter has also understood the truth about his profligacy with the excellent economy he inherited , his tendency to hide, dither and spin; and to harbour grudges.
Brian Watson, VERWOOD, Dorset, UK
I wonder what those backbenchers that pushed out Tony Blair thinking he was a liability and will cause them to lose their seats think now...
KTC, Edinburgh,
The Labour meltdown isn't going to be pretty to watch, although it's now gone too far to reverse.
Let's hope Gordon doesn't do the country too much irreversible damage as he tries to cling on to power.
Rob, B'ham, UK
The recent spat of punitive tax measures should be first up on their agenda. £25 a day congestion charge = the back of Ken Livingstone, 10p income tax abolition, road tax DOUBLED to over £400 in 2010....etc etc.... will see the back of the rest of them.
Richard Gooch, London, UK
What's this nonsense? "Frank Field.. led the successful revolt against abolition of the 10p income tax band, which penalised millions of low-paid workers". Untrue. The revolt has not succeeded. The band is not abolished. Most of the low-paid workers continue to be penalized. Promises, only promises!
Thomas Goodey, Cuxton-upon-Medway, England
Cut the obscene 75% duty level on petrol and diesel, stop the wholly punitive road tax increases sneaked in in the last budget, restore the 10p tax rate, stop finding £billions to shore up private banks and cap the Olympic black hole budget at £10 billion- Just for starters!!- Then Go!!
Mark C, reigate, uk
A challenge for the leadership from inside the Labour Party is not what the people want or deserve. Brown should do the honourable thing and call a General Election. The sooner the better for us all.
Chris, Norwich,
erm ... TAXI FOR BROWN !!!!
J McM, GATESHEAD,