Pasty Tax And Granny Tax To Be Challenged By Labour In the Commons

PA/Huffington Post UK  |  By Posted: 8/04/2012 07:18 Updated: 8/04/2012 09:05

Labour will attempt to defeat the "granny tax", the "pasty tax" and the abolition of the 50p tax by calling a series of Commons votes, it has said.

Shadow chancellor Ed Balls insists it is not "too late" to reject the unpopular Budget measures and is calling on disgruntled coalition MPs to back the party's bid.

In an article for The Sun on Sunday Mr Balls said "it's not right and it's not fair" that the highest earners will benefit from the reduction in the top rate of income tax while millions of pensioners will be left worse off by Chancellor George Osborne's measures.

He is also demanding a Government rethink on the "daft" plans to impose 20% VAT on pasties and other hot food.
Mr Balls wrote: "There are two Budget decisions that aren't too late to stop.

"The £3 billion tax rises on pensioners - the so called granny tax - which George Osborne announced last month does not kick in until next year.

"Nor does the £3 billion handout which he announced for people earning over £150,000, when he cut the 50p top rate of income tax.

"That's a tax cut of over £40,000 for 14,000 millionaires.

"How out of touch are David Cameron and George Osborne if they think millions of pensioners who've worked hard all their life should have to pay more tax next year so that millionaires can pay less?"

He added: "And we'll demand that the Government thinks again on its daft plan to slap 20% VAT on pasties, sausage rolls and even hot cross buns - and other things which have traditionally been VAT-free, including caravans and building work on churches."

The Chancellor insists no pensioner will lose cash as a result of the scrapping of age-related allowances.
But the Treasury acknowledged that 4.5 million pensioners would lose out in real terms as a result of the decision to phase out the relief.

Under the Chancellor's plans, the allowances will be withdrawn for new pensioners from April next year while existing pensioners will have their allowances frozen at £10,500 for the over-65s and £10,660 for the over-75s until overall tax thresholds catch up with them.

Labour is tabling a series of amendments to the Finance Bill later this month. Parliament has to approve the Budget before George Osborne's changes can be enacted.

Labour was mocked when many of its MPs missed a vote last month on the move from a 50p levy on the highest earners to a 45p rate.

But the party insists that vote would have wiped out all income tax and is instead attempting to force a vote on removing the new rate.

Mr Balls added: "The Government's economic policies are failing. From this week working families are paying the price.
And next year pensioners will be hit hard as millions are asked to pay more, so that millionaires can pay less.

"Tory and Lib Dem MPs who are still in touch with what life is like for their constituents should admit Cameron and Osborne have got it wrong this time.

"They should vote with us to stop the granny tax before it's too late."

The National Pensioners Convention (NPC) announced it will stage a demonstration to coincide with the age-related allowances debate on April 19.

Dot Gibson, NPC general secretary, said: "The Chancellor's decision to freeze the age-related personal tax allowances in the Budget has completely backfired. We have been inundated by pensioners who are disgusted that those on around £11,000 a year will no longer get additional reductions in their tax - whilst those earning £150,000 or more will see their tax bills reduced.

"This is seen by many as the last straw - coming on top of cuts to the winter fuel allowance, changes to the way pensions are uprated and crumbling care services. Pensioners feel they are being asked to bail out the super rich - and it's simply not fair."

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Labour will attempt to defeat the "granny tax", the "pasty tax" and the abolition of the 50p tax by calling a series of Commons votes, it has said. Shadow chancellor Ed Balls insists it is not "too...
Labour will attempt to defeat the "granny tax", the "pasty tax" and the abolition of the 50p tax by calling a series of Commons votes, it has said. Shadow chancellor Ed Balls insists it is not "too...
 
 
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HUFFPOST SUPER USER
Blockem1
When will our politicians start putting policies
08:40 on 10/04/2012
What these guys fail to understand when tinkering about with meaning less statements in order to get some PR commentary is now such a wast of time, if anything it re-affirms just how bad and ineffectual they are.What is wanted is workable new ideas and strategy that don't just favour a select few and we can see clearly it benefits the economy. When it comes to tax there is a gaping hole that allows companies such as Amazon and Apple to do billions of business in the the UK and not pay a penny in corporation tax .
07:55 on 10/04/2012
He talks about taxes, wasn't it his government that doubled Council Tax putting many 'grannies' and 'grandads' ino poverty as it was not income related?
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HUFFPOST SUPER USER
Edgar H
Keep the Press free!
05:29 on 09/04/2012
Will Ed and Ed bother to turn up or is it meaningless retoric. Not building two aircraft carriers would have saved billions from over our stretched finances.

The pasty tax shows how out of date with reality and with working people he is, he thinks, we sit round supping real ale eating pasties and talking about pidgeons. However, its ok to talk big after you screwed it up!
12:03 on 09/04/2012
Well said my friend.
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Mickey Mouse 1
There are no lies or deceit on a chess board.
22:05 on 08/04/2012
Ed, can you overturn Labour's debt mountain and reverse Labour's mass immigration policy in order to create a multicultural society for votes? Thanks.
12:04 on 09/04/2012
Yes lord help us if his party are ever elected again.
21:22 on 08/04/2012
Have you noticed how recently, Ed Balls has changed the way he dresses, and the way he talks? They can change his clothes, they can change his voice, but the one thing they can never change is his psychotic eyes.
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northern git
fed up with all the political crap in life
17:39 on 08/04/2012
will someone please shut this cheshire cat up

as long as he is around and people remember he was part architect of this country's economic problems labour will never have any credibility

and as long as the miilipede prattles on they wont deserve any credibility either
20:02 on 08/04/2012
correct.........
17:18 on 08/04/2012
Lets have a bit of sympathy for these rich people it's hard being greedy and grabbing in these hard times.
ZEB
never fear the zeb is ere
16:35 on 08/04/2012
Lets look at the facts the pasty is heated, so when you buy a heated pasty the gas or what ever is placed into the cost, so there for we are all ready paying VAT to the gas comp or the power comp, this is an unjust tax,
Please note, the PM and co still get the child benifit, for people that do not need it, the question is why?
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HUFFPOST SUPER USER
Ben Wilson
Might as well laugh while you still can.
14:34 on 08/04/2012
Only in the UK could we wrap a cornish pasty in red tape. It's literaly like it was ripped out of Yes minister except I doubt Cameron would say "They cannot and will not destroy the British Sausage" He'd tax it because it would be unfair to salami.
14:14 on 08/04/2012
If Ed B had the cajones he wants the electorate to believe he has, then maybe he should not worry about the granny tax and the pasty tax, and tell us what we want to hear...that the next Labour government will re nationalise all those industries that were STOLEN from the taxpayers by Thatchers lot.
The profits from which were supposed to trickle down, instead of which they slink off into off shore tax havens, to the deprivation of those who paid for those industries to be created and programmed into existence.

A leading American economist this week has stated the 'trickle down ' effect was a phoney, it was never designed to work, it simply handed over those industries assets to the global corporations, and the wealth created simply went into the coffers of those, where it cannot be accessed for the necessary reinvestment it should have replaced.
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HUFFPOST SUPER USER
Roy Fowler
I try....I really do!
11:49 on 08/04/2012
Not until ONE Labour MP has the bottle to stand up and admit that THEY had a major part in placing the UK in its current financial crisis, will I give Mr Balls and Labour one moment of consideration as a party in which i would vote for.
11:57 on 08/04/2012
Ed Balls, -clown is treating people like fools.Ed Miliband, Yvette Cooper and Ed Balls,-clown, they tried destroyed the UK economy. The mess of the economy they made!
10:41 on 08/04/2012
why are the tories so terrified of this guy ?
12:00 on 08/04/2012
Labour, under Yvette Cooper and Ed Balls, overspending left the UK with the largest structural deficit in the G20.We all know the truth, that Ed Balls is a disgusting person.
13:19 on 08/04/2012
maybe...but why are you so terrified of him....he's not peter mandelson or anything
12:35 on 08/04/2012
Who has said the Tories are terrified of this guy, they treat him as he is .A Clown.
13:02 on 08/04/2012
Another paid up member of the "NASTY PARTY" The Condims are a smashing Government - smashing up everything they touch.
13:18 on 08/04/2012
are you the only person that doesn't know then ?
10:40 on 08/04/2012
Well done ED now tell the World that when we get back into power you will reverse the NHS bill and the cost will be bore on all the private health firms who buy in to it!