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Brown urged to ease 10p tax pain Brown urged to ease 10p tax pain
(about 2 hours later)
Gordon Brown is under 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.
Ministers are attempting to head off a backbench rebellion - but have also told Labour MPs no money is available to reverse the changes.Ministers are attempting to head off a backbench rebellion - but have also told Labour MPs no money is available to reverse the changes.
On Thursday, the prime minister persuaded ministerial aide Angela Smith not to quit over the issue. On Thursday the prime minister persuaded ministerial aide Angela Smith not to quit over the issue.
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. And normally loyal Labour MP Clive Betts has written to Mr Brown urging him to reverse them.
'Poorest people'
The Sheffield Attercliffe MP said many Labour MPs were "unhappy" about the abolition of the 10p band but "in the context where we recognise the government has done a very good job over the last 10 years in addressing issues of poverty".
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?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. He told BBC News 24: "While we have protected pensioners and working families with children unfortunately there are people on low incomes who haven't got children who are worse off and are paying more tax.
"And that's something that we really feel unhappy about and we'd like the government to recognise that they have got that element wrong and take steps to put it right as quickly as possible."
He added: "A Labour government increasing tax on some of the poorest people in the country isn't what a Labour government was elected to do."
'Not much doubt'
MPs will have a chance to voice their concerns on Monday when they debate the second reading of the Finance Bill.
But they will not get a chance to vote on the 10p tax issue until a week later when ex-minister Frank Field plans to table an amendment calling for compensation for those affected at the bill's committee stage.
Mr Field said he hoped the government would make the changes itself, rather than being forced to do so.
Ms Smith said she had 'concerns' but would not resign
"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."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."
Smith 'reassured'
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.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, said in a statement last night: "It is true I have concerns over tax changes and these have been discussed with senior government figures. Needy 'betrayed'
"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." Ms Smith, PPS to Chief Secretary to the Treasury, said in a statement she had had "concerns" but had been reassured they were understood and "the government remains committed to its anti-poverty agenda".
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.
Once people understand the scale of the good things that we have been able to do in reforming the tax system ... then whatever questions people have about these changes can be answered name here
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."
'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%.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 also said they will put pressure on the government over the issue.
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."
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 warned the prime minister's critics: "The efforts of local councillors and shadow leaders should not be undermined by this kind of indulgent nonsense. "