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Brown urged to ease 10p tax pain Brown urged to ease 10p tax pain
(about 3 hours later)
Gordon Brown is under growing pressure to compensate people who have lost out over the abolition of the 10p tax band. Gordon Brown is under pressure to compensate people who have lost out over the abolition of the 10p tax band.
Many Labour MPs are angry that the move - which came into effect last week - has hit millions on low incomes.Many Labour MPs are angry that the move - which came into effect last week - has hit millions on low incomes.
The prime minister stepped in on Thursday to prevent ministerial aide Angela Smith quitting over the issue, offering her "reassurances". Ministers are attempting to head off a backbench rebellion - but have also told Labour MPs no money is available to reverse the changes.
But ex minister Frank Field has tabled an amendment to the Finance Bill urging compensation for those affected. On Thursday, the prime minister persuaded ministerial aide Angela Smith not to quit over the issue.
It's rather extraordinary, he seems to have very little authority now David Cameron on Gordon Brown class="" href="/1/hi/uk_politics/7353273.stm">MP decides not to quit government class="" href="/1/hi/uk_politics/7353593.stm">Analysis: Discipline problem? Now normally loyal Labour MP Clive Betts has written to Mr Brown urging him to look again at how the tax changes are affecting the low paid.
'Not much doubt'
And ex-minister Frank Field has tabled an amendment to the Finance Bill urging compensation for those affected.
More than 70 Labour MPs have signed one of three Commons motions criticising the reforms.More than 70 Labour MPs have signed one of three Commons motions criticising the reforms.
It is not clear how many will support Mr Field's amendment at the second reading of the Finance Bill on Monday.It is not clear how many will support Mr Field's amendment at the second reading of the Finance Bill on Monday.
It's rather extraordinary, he seems to have very little authority now David Cameron on Gordon Brown MP decides not to quit governmentAnalysis: Discipline problem?
Mr Field is expected to table a further amendment at the bill's committee stage a week later - but he said he hoped the government would make the changes itself, rather than being forced to do so.Mr Field is expected to table a further amendment at the bill's committee stage a week later - but he said he hoped the government would make the changes itself, rather than being forced to do so.
"We have never had a measure where we are being asked to vote for a package which makes 5 million of the poorest people worse off who are doing exactly what the government has asked people to do and that is - to work," he told BBC Radio 4's Today programme. "We have never had a measure where we are being asked to vote for a package which makes five million of the poorest people worse off," he told BBC Radio 4's Today programme.
"This is quite clear cut and I don't think there is much doubt among Labour members that they didn't come to Parliament to do this.""This is quite clear cut and I don't think there is much doubt among Labour members that they didn't come to Parliament to do this."
On Thursday, Mr Brown took time out from his US trip to prevent Parliamentary Private Secretary Angela Smith from resigning over the issue. Smith 'reassured'
Labour revolt On Thursday, Mr Brown took time out from his US trip to call Parliamentary Private Secretary Angela Smith from the White House, after reports she was considering resigning over the abolition of the 10p tax rate.
Ms Smith, PPS to Chief Secretary to the Treasury, Yvette Cooper, received a call from Mr Brown at the White House reassuring her about the changes. Ms Smith, PPS to Chief Secretary to the Treasury, Yvette Cooper, said in a statement last night: "It is true I have concerns over tax changes and these have been discussed with senior government figures.
The efforts of local councillors and shadow leaders should not be undermined by this kind of indulgent nonsense Ed BallsSchools Secretary
Ms Smith, a Parliamentary Private Secretary, is understood to have told colleagues she was considering standing down rather than having to support the abolition of the 10p tax rate.
In a statement last night, she said: "It is true I have concerns over tax changes and these have been discussed with senior government figures.
"I am reassured that my concerns are understood and that the government remains committed to its anti-poverty agenda. Resignation of my post is therefore not envisaged.""I am reassured that my concerns are understood and that the government remains committed to its anti-poverty agenda. Resignation of my post is therefore not envisaged."
The efforts of local councillors and shadow leaders should not be undermined by this kind of indulgent nonsense Ed BallsSchools Secretary
The row has been seized by the opposition as a sign that Mr Brown is losing control of his own party.The row has been seized by the opposition as a sign that Mr Brown is losing control of his own party.
'Poor families'
Conservative leader David Cameron told Sky News: "It's rather extraordinary, he seems to have very little authority now, he's being held to ransom by members of his own front bench, threatening to resign and then he's having to break off from trips to the US to dissuade them. It all just looks weak and drifting."Conservative leader David Cameron told Sky News: "It's rather extraordinary, he seems to have very little authority now, he's being held to ransom by members of his own front bench, threatening to resign and then he's having to break off from trips to the US to dissuade them. It all just looks weak and drifting."
And Liberal Democrat leader Nick Clegg said: "Gordon Brown's government is starting to unravel before our eyes as Labour MPs see the full extent of the prime minister's betrayal of the most needy in our society."And Liberal Democrat leader Nick Clegg said: "Gordon Brown's government is starting to unravel before our eyes as Labour MPs see the full extent of the prime minister's betrayal of the most needy in our society."
Mr Brown's decision, while still chancellor, to abolish the lowest, 10p rate of income tax and to reduce the basic rate from 22% to 20% may yet prompt a large Labour revolt. 'Tackling poverty'
Mr Brown decided, while still chancellor, to abolish the lowest, 10p rate of income tax and to reduce the basic rate from 22% to 20%.
Former Home Secretary David Blunkett spoke out against it earlier this week, urging Mr Brown to do more to help those most affected by it.Former Home Secretary David Blunkett spoke out against it earlier this week, urging Mr Brown to do more to help those most affected by it.
The Conservatives and Liberal Democrats have said they will put pressure on the government over the 10p tax rate. The Conservatives and Liberal Democrats have also said they will put pressure on the government over the issue.
Shadow Chief Secretary to the Treasury Philip Hammond told the BBC earlier: "We want to send a message to the government, when we vote in parliament, that they have to go back to the drawing board.
"They have to unpick this package and put it back together in a way that does not have these negative effects for these very poor families."
'Intolerant'
Mr Brown defended the move at a press conference with President Bush on Thursday, saying: "I am satisfied that once people understand the scale of the good things that we have been able to do in reforming the tax system, that we are tackling poverty by increasing tax credits for the poorest, then whatever questions people have about these changes can be answered."Mr Brown defended the move at a press conference with President Bush on Thursday, saying: "I am satisfied that once people understand the scale of the good things that we have been able to do in reforming the tax system, that we are tackling poverty by increasing tax credits for the poorest, then whatever questions people have about these changes can be answered."
But in an interview with the Times, Schools Secretary and close Brown ally Ed Balls said Labour would be "intolerant" of anyone who put personal interests before those of the party. In an interview with the Times, Schools Secretary and close Brown ally Ed Balls said Labour would be "intolerant" of anyone who put personal interests before those of the party .
Mr Balls said: "The efforts of local councillors and shadow leaders should not be undermined by this kind of indulgent nonsense. Mr Balls warned the prime minister's critics: "The efforts of local councillors and shadow leaders should not be undermined by this kind of indulgent nonsense. "
"Rather than cause difficulties for the party, Labour will feel that these people should get out on the campaign trail and start fighting the Conservatives and the Liberal Democrats."