Local MP Michael Connarty welcomes announcement from Chancellor, Alistair Darling on Increasing Tax Free Allowances

As one of those who proposed the amendment to compensate people who lost out following the abolition of the 10% tax band in the 2008 Budget, Michael Connarty MP for the Linlithgow and East Falkirk constituency, has welcomed the latest announcement by the Government to increasing Tax Free Allowances. He is delighted that many people within his constituency will now benefit from these new measures.

Michael said, “Sometimes you have to just stand firm on your principals. I did not ask to be elected to Parliament to cut the incomes of the less well off members of my constituency to give tax cuts to the better off. The 50 Labour Members who campaigned for compensation were quite firm in our resolve that only a full compensation package properly back dated to cover any losses suffered in this financial year, would be acceptable to us. I see it as a mark of the strength and moral position of the Prime Minister, Gordon Brown, that he was willing to accept that the Treasury had not worked through the full consequences of the decision to abolish the 10p tax rate and that the correct moral thing to do was to promise full back dated compensation for those on low incomes who had not been given other compensation through the tax system, child benefit, allowances or pensions. The reduction in the standard rate of tax to 20p and the other changes in the Budget mean that 4 out of 5 people are better off and I am happy to support this now that poorer members of my constituency are not having to lose out as a consequence. I am particularly pleased that the Government have responded to my personal suggestion that we look at changes to the minimum wage for young workers. I think the full minimum wage should be paid to everyone who is 18 years and over”.