Gordon Brown’s well received Labour Party Conference speech mentioned how he felt ‘stung’ by the reaction to the abolition of the 10p tax rate and he pledged that ‘where I've made mistakes I'll put my hand up and try to put them right’.
This month, basic rate taxpayers earning between £6,035 and £40,835 will start benefiting from the increase in the personal allowance announced following the abolition of the 10p rate. According to the Institute of Fiscal Studies this gives £120 to ‘almost all' of these basic rate taxpayers. The first £60 is included in the September pay packet - which is currently being received by taxpayers - with subsequent payments of £10 for the rest of the tax year.
Although not a huge sum, the money arrives at a time when many are feeling the pinch of higher food and energy prices. Will the public feel that the payments combined with the Prime Minister’s words of contrition do enough to make amends?