Chancellor: Income tax cut no con

Chancellor Gordon Brown has defended the changes in income tax in the Budget as "about being fair to people".

In his 11th and almost certainly final package delivered on Wednesday, Mr Brown sprung a surprise by announcing a 2p cut in the headline rate of income tax.

But opposition parties were quick to denounce the centrepiece measure as a "con", claiming that scrapping the bottom 10p rate would offset the benefits taxpayers received from the cut.

Speaking on GMTV, Mr Brown insisted the Budget would give more money to health, education, families and pensioners.

"I think what we've tried to do is make sure health and education have the money, while at the same time be fair to people, and the tax reform is about being fair to people. I think with having the two rates now it is going to be better for the future."

He went on: "The purpose of these changes is to do the best by this country. This was the time to make the tax reform that helps incentivise work, does more for families and is very sensitive to the needs of pensioners."

Mr Brown dismissed Opposition claims that the Budget was "a con" in which the Government was taking as much away as it was giving to people.

He told Sky News: "That's absolute nonsense - there is two-and-a-half billion (pounds) extra going into the personal tax system.

"We wanted to make sure we had a modern tax system for business and for individuals and it is the biggest tax reform for 20 years."

He said he was "trying to do the right thing by the country" and claimed that after the discussion surrounding the Budget had died down, people would say he had done the right thing.