10p tax changes ‘do not go far enough’

The changes to the tax structure that were brought in after the government u-turn on the abolition of the 10p tax rate do not go far enough to help those left out of pocket, it has been claimed.

According to a Treasury committee, as many as one million British households could still lose out as a result of the tax rate abolition, despite promises that they would be reimbursed.

For many people, the problems could see them forced into a more difficult debt management position as inflation continues to rise and lenders continue to squeeze their customers.

“There are still 1.1 million losing households, many of whom are on low incomes and who are being hit hard by rising food and fuel prices and the slowdown in the economy,” said John McFall, chairman of the Treasury committee.

Last week, chancellor Alistair Darling told the Liverpool Daily Post that mortgage lenders should stop ‘ripping off’ their customers, many of whom are already finding it tough to become debt free.

By Giles Stevenson