Financial Times FT.com

Unpalatable choice lies ahead

By Alex Barker, Political Correspondent

Published: April 29 2008 02:44 | Last updated: April 29 2008 02:44

As they flesh out the details of the 10p tax rate U-turn, Treasury officials are likely to have found a series of options for a compensation package that are by turns too expensive, too slow or too limited in scope.

Their final recommendation may offer Gordon Brown the unpalatable choice between increasing income tax allowances and making a further political concession to his critics – or using his cherished tax credits system to make payments at a later date to fewer people.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this