Labour bid to block key Budget measures defeated

The defeats pave the way for the introduction of a 20 per cent tax on the maintenance of Britain’s historic buildings as well as a 20 per cent levy on hot baked goods – the so-called “pasty tax”.

The proposal to cut the top rate of tax from 50p to 45p – a measure which has attracted widespread criticism from opponents since Chancellor George Osborne announced it last month – can also now go ahead after MPs voted in favour of the move by 323 to 256.

Appearing before MPs for the first time since the Budget, Mr Cameron offered a staunch defence of the measures set out by his Chancellor.

He said: “This Budget cut taxes for 24 million people, this Budget cut corporation tax, this Budget made Britain competitive.”

However, Labour leader Ed Miliband branded the Budget an “omnishambles” during Prime Minister’s Questions.

He said Mr Osborne had “conned” pensioners and taken money from charities, churches and pasty-eaters while handing £40,000 each to Britain’s millionaires.

The clash came on the day the influential Commons Treasury Committee released a report questioning the figures used by Mr Osborne to justify axing the 50p rate.

Labour and Tory MPs last night criticised the plans to levy VAT at 20 per cent on work carried out on listed buildings. They claimed the proposals could discourage improvements designed to preserve the UK’s history – and risked undermining David Cameron’s flagship Big Society.

Labour former Culture Minister Ben Bradshaw led the bid to prevent the tax being imposed but was defeated by 293 votes to 258.