Gap between rich and poor widening

3.00.00pm UTC (GMT +0000) Wed 30th May 2007

Gordon Brown's policies to support the less well off are failing to prevent the gap between rich and poor widening again, official figures showed. The snapshot of the impact of taxes and benefits on households showed that the trend for those on the highest incomes to receive the biggest pay rises was outweighing the impact of tax credits, the minimum wage and extra spending on schools, hospitals and welfare benefits.

Sir Ming Campbell said "After ten years of Labour, the income gap between rich and poor is wider than at any point under Margaret Thatcher. This is an outrage. And I am appalled by the Chancellor's response. The Budget raised income tax for taxpayers earning up to eighteen and a half thousand pounds a year. The Chancellor hiked taxes for the lowest paid to fund tax cuts for higher earners. Labour is still a party of redistribution - but now it's in the wrong direction."