Research by the Liberal Democrats released today reveals that Gordon Brown's budget means almost 70,000 Armed Forces personnel will see less money in their pay packets when the abolition of the 10p tax rate takes effect in 2008.
Armed Forces personnel of private rank up to level 4 who get a starting salary of just £14,323 (effective from April 2007) will see an income tax hike from April 2008. They are among the 'low paid losers' of Brown's budget.
The MoD recently announced pay rises for personnel from April 2007 as part of the Armed Forces Pay review. But the effect of the budget will mean that once again Brown has given with one hand and taken with the other.
Commenting, Liberal Democrat Shadow Defence Secretary, Nick Harvey MP said:
"This is a shabby deal from a Chancellor who appears to care little about those who put their lives on the line for Britain
"How can we be asking our hard pressed armed forces to pay more in tax, when we pay them so little in the first place?
"This is a disgraceful way to reward our armed forces for the fighting they are doing in Afghanistan and Iraq on this government's behest.
"Once again Brown has shown that what he gives with one hand he takes away with the other."
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