Brown Has Failed To Tackle Income Inequality - Cable

1.15.45pm BST (GMT +0100) Thu 17th May 2007

Commenting on new income inequality figures released today, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "The Blair-Brown government has wasted its opportunities. Labour has failed to build the fairer society that it promised.

"It is a disgrace that after 10 years of a Labour government, inequality is now at the same level as it was after 18 years of Tory rule.

"Under Gordon Brown's watch, rates of social mobility have fallen and the number of working people in poverty has risen.

"The Chancellor's response has been appalling - the last budget hiked taxes for the lowest paid to fund tax cuts for higher earners.

"Under this Labour government the poorest fifth of households pay a bigger chunk of their income in taxes than the richest fifth, and the gap is widening."

ENDS

Notes to Editors

The Office of National Statistics today released The effects of taxes and benefits on household income, 2005/06, an analysis of the effects of taxes and benefits on household income:

<http://www.statistics.gov.uk/cci/article.asp?id=1804>;