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3.49pm: Darling - Individual tax allowance up £600 but (IT SEEMS) for just one year - to £6,035.
3.49pm: Highlights of George Osborne's response:
- "Humiliating" for the Chancellor to have to make the tenth emergency statement since becoming Chancellor
- "Humiliating" to have to introduce a mini-budget to compensate for Gordon Brown's tax con Budget of 2007
- This is less like a considered statement from a Chancellor - more like a cynical press release in the middle of a by-election campaign
- What are the long-term plans to compensate people? This is just a one-off measure - like the pre-election council tax discount.
3.55pm: Vince Cable welcomes the statement but attacks Darling for not giving him or George Osborne any pre-notification of the announcement. He asks how many people will NOT be fully compensated by this move and urges the Chancellor to reconsider giving a rebate to people.
3.58pm: Frank Field apologises to the Prime Minister for what he said at the weekend about Mr Brown.
4.05pm CONSERVATIVEHOME'S VERDICT: Cynical? Yes. Related to the by-election? Yes. Forced upon Labour? Yes. Even more borrowing? Yes. The right thing? On the face of it, Yes. As Lord Forsyth advocated some weeks ago: Raising the personal tax allowance was the right response to this issue. The Tories should have recommended this option weeks ago, too. We should now press for these higher thresholds to be made permanent. It is right that as many low income people as possible are taken out of the tax system.
4.30pm: Nick Robinson's take: "Labour MPs are happier than they have been for weeks and the Tories, for the first time in a long time, look wrong footed."
4.43pm: Download PDF of full statement from George Osborne.
4.49pm: Guido welcomes Labour's "unfunded tax cut"!
4.52pm: TaxPayers' Alliance's response: "This 10p saga has been a mess from the beginning and this is a poor attempt to fix it. Large numbers of people on low incomes will still lose out, and even those the Chancellor says will be compensated are simply being given their own money back. It is a sorry state of affairs when taxation is pushing millions of families to the brink and the Government struggles to even make up for its own bad decisions. People urgently need Alistair Darling to make serious reductions in the tax burden, but at the moment he barely seems capable of tinkering around the edges.”
5.30pm: ThreeLineWhip: The Tories should have listened to Forsyth on 10p tax
5.59pm: From George Osborne: "What he didn’t tell us was that 1.1 million low earners on between £6,635 and £13,355 will still be worse off, by up to £112 a year. So the poorest people will still lose out."
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