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Labour: Our council tax cuts would go further
Alan Johnson
Johnson: Council tax pledge

Labour has highlighted differences between its council tax cut for pensioners and that of the Tories.

At a pre-election press conference on Thursday, work and pensions secretary Alan Johnson said the chancellor's £200 Budget gift to over-65s would be more effective than the Conservatives'.

Shadow chancellor Oliver Letwin has offered pensioners a council tax rebate of up to £500 in the next financial year.

In his Budget on Wednesday, Gordon Brown claimed to have bettered this by putting forward plans for giving every OAP £200 next year to help with rising property tax bills.

Outlining some of the detail behind the plan, Johnson said although the payment would be smaller than the Tory maximum, Labour's cash would go further.

"The truth is more money goes to more pensioners under Labour's plans than under the Tories'," the Cabinet minister claimed.

He argued that Letwin's initiative was based on making savings elsewhere that are unrealistic and skewed towards wealthier pensioners.

Johnson said Brown's plan would give money to 6.2 million pensioner households, while the Conservatives' would reach 2.7 million less.

He added that the Tories would not pay pensioners living with a partner under 65 or those caring for family members.

"Tory policy is massively skewed to help wealthier pensioners," he said.

"The Tories' council tax plans are not only unaffordable but also unfair."

Published: Thu, 17 Mar 2005 12:06:30 GMT+00
Author: Daniel Forman

"The Tories' council tax plans are not only unaffordable but also unfair"
Alan Johnson