Marriage Tax Breaks Fast-Tracked By Cameron

Plans for a tax break for married couples will be introduced this year in a move to head off a revolt by Tory backbenchers.

Details of the policy, which is a pet project of David Cameron's, are now expected to be in George Osborne's Autumn Statement.

They should then be included in the next Finance Bill and come into force early in 2014, with couples starting to benefit around the election a year later.

Government sources had previously indicated it was likely to be tabled in April 2015 but a backbench revolt has led to it being brought forward.

The move will now reportedly form a key part of Mr Cameron's party conference speech in October, with Mr Osborne fleshing out the plans in his statement in November.

Rebel MPs led by former minister Tim Loughton had been preparing to back an amendment to this year's Finance Bill in the Commons on Tuesday calling for an immediate tax break.

But the Prime Minister, speaking on his Asia trip, urged MPs to let the Government "get on with it" instead and promised plans would be outlined soon.

He said: "The point is that we are going to be putting in place the marriage tax proposal in law. We will be announcing plans for that in this parliament, quite shortly in fact."

Of Mr Loughton's proposed change to the Finance Bill, he added: "I don't think that the amendment is in line with the plans that we have."

Mr Loughton said that if the plans were officially confirmed to him, he would be happy not to push his amendment in the Commons.

He added: "If it is going to come in the Autumn Statement I, for one, will be absolutely delighted to welcome it."

Fast-tracking the policy may placate Mr Cameron's restive MPs but will highlight divisions over the policy within the coalition.

The Tory manifesto in 2010 promised a tax break worth £150 to married couples but the Liberal Democrats argue it discriminates against unmarried couples.

Deputy Prime Minister Nick Clegg has previously ridiculed the proposals as "patronising drivel that belong in the Edwardian age" and launched a fresh attack on Monday.

He warned it would punish widows or spouses abandoned by their partners, as well as people who are unmarried and said he would rather see the money spent on childcare support.

"This desire of the Conservative Party to hand-pick couples through the tax system who conform to their image of how you should conduct your life, I don't think it's fair," he said.

"And I certainly don't think it's fair on all those other people who are going to have to pay higher taxes to fund this proposal.

"If you have got hundreds of millions of pounds to spend on tax breaks like that then I would much rather spend it on all working families to improve the tax breaks we are going to give them on childcare, for instance."

The coalition agreement spells out that Lib Dem MPs can abstain on a plan to recognise marriage in the tax system, which would split the Government.

Labour has also condemned the measure.

Shadow Treasury minister Catherine McKinnell said: "At a time when the Government's failed economic policies mean living standards are falling, we should be helping all families and not just some.

"Millions of people who are separated, widowed or divorced, as well as married couples where both partners work and use all their personal allowance, won't get any help from this out-of-touch policy.

Campaigners accused the Tories of promoting a "fantasy 50s family" where a married couple includes a breadwinner and homemaker.

Julianne Marriott, from group Don't Judge My Family, said: "It's out of step with modern families who come in all shapes and sizes and discriminates against families with single parents, widows and widowers, couples who both work and couples who chose not to marry.

"This marriage tax announcement isn't about keeping families together; it's about keeping the Tory party together. We believe the Government should be spending £500m on helping all families, not judging them."

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