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MPs back 'granny tax'

MPs back 'granny tax'
MPs have backed the Government’s “granny tax” after a vote in the House of Commons. An amendment to the Finance Bill called by Labour was defeated by 298 votes to 231.

Labour had been hoping for a significant rebellion from Conservatives after the Government was left embarrassed by rebellions last night on a number of measures unveiled in the Budget.

Its majority was cut to just 25 on the decision to charge VAT on static caravans, with 17 Conservative MPs defying the party whip. On the "pasty tax", 14 Coalition MPs rebelled.

With further rebellions threatened, The Times reports that George Osborne is willing to increase the amount of money available to churches hit with larger bills for building work because of the decision to charge VAT on alterations to historic buildings.

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