10p tax: democracy works

This week, the Government responded to pressure from Labour's grassroots and backbenches and produced a substantial and generous package to correct the problems created for some of the least affluent in society by the abolition of the 10p tax rate.

The package will be worth £120 per person to all basic rate tax payers - so as well as those who lost out from the 10p abolition, it will also benefit others who are feeling the pinch as fuel and food prices rise as a result of glocal economic pressures.

Significantly, the Chancellor has done this by raising the personal tax allowance: the amount of income on which we don't have to pay any tax, which is the fairest way to help the poorest. It is also welcome news that this measure will be backdated to April which means this help will go even further.

I received a bit of media attention for my criticism of the impact of the abolition of the 10p tax rate. As I wrote in my original post, I was particularly concerned about the impact on pensioners in Putney.

So I'm delighted by this announcement because, simply put, democracy works. As I wrote originally, when you have made a mistake it is a virtue, not a vice to admit to it.

For those of you who saw the exchanges in parliament, just contrast the considered, generous remarks of Labour MP Frank Field - the leader of those of us who were most concerned about the 10p tax problem, who worked constructively with Ministers to deliver this package and the braying, squeeling, Punch-and-Judy yah-boo reply from the Shadow Chancellor, still as out of his depth as ever.

I'm in politics because I want to get things done - and Putney pensioners and those on low incomes - as well as middle income earners, will now see the results of that approach.