Author: Laura Dewis

92Rewind: The 20p "tax trap" spat

Updated Thursday, 8th April 2010
As parliament finished up its business, the Tories attacked Labour's tax proposals

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This blog is coming to you as part of's 92Rewind Twitter stream in the lead up to this year's General Election.

Taxes were a big focus in the 1992 election campaign, becoming a flashpoint just a day into the election battle.

Lots of 20p coins
Lots of 20p coins. [Image: Peter C. under CC-BY-SA licence]

The London Evening Standard reported Conservative Chief Secretary to the Treasury David Mellor describing Labour's planned position as "ludicrous" - simultaneously introducing a minimum wage while raising the tax rates paid by those on the lowest incomes.

Mellor claimed "They are not just going to soak the rich, they are going to soak the poor as well.

"The real question now is what does this tell us of Labour's intentions on the 25p basic rate? Their willingness to increase income tax for the very lowest paid suggests they would have no compunction whatsoever in increasing the basic rate when their spending plans catch up with them.

"As I have said before, dogs bark, cats mew, Labour puts up taxes. Now people know that's no exaggeration."

MPs would be voting on the new tax rates as one of the last acts of the current parliament.

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