Rebel MPs tell Brown to ‘step back’ from defeat over scrapping of 10p tax rate

Apr 23 2008 By Rob Merrick, Liverpool Daily Post

Birkenhead MP, Frank Field

REBEL MP Frank Field last night urged Gordon Brown to step back from a bloody Commons defeat over the scrapping of the 10p tax rate, insisting: “I do not want to bring down the Government”.

The Birkenhead MP – who has signed up 39 Labour backbenchers to an amend-ment to compensate the millions hit by the change – said he wanted to avoid a showdown vote next Monday.

But he insisted the Government must first produce a nailed-down compensation package, instead of vague pledges to con-sider help for the losers in future Budgets.

George Howarth (Knowsley North and Sefton East) and Peter Kilfoyle (Walton) are among the 39 Labour rebels – enough to defeat Mr Brown in Monday’s vote on the Finance Bill.

Such a defeat would be a mortal blow to the prime minister’s already-weakened authority, with some speculating it would force him out of No 10 before the next election.

Yesterday, there were the first signs of a possible deal when Chancellor Alistair Darling met a group of unhappy Labour backbenchers, telling them he will act “within this financial year”. It raised hopes that compensation will be announc-ed in November’s pre-Budget report and made retrospective to this month – a deal that would buy off most of the rebels.

But Treasury sources said no details had been decided, which pointed to more hard bargaining ahead to try to rescue Mr Brown from the risk of defeat.

Last night, Mr Field poured scorn on the idea that the clash was a de-facto vote of confidence in Mr Brown, saying: “Of course it isn’t. No-one except the prime minister thinks that.”

And he added: “The aim is not to win a vote – it is for the Government to get on the front foot and accept there is a problem. We should not be in the position of saying to the low-paid ‘We are punishing you’.

“I accept they can’t deal with it perfectly this year, but they can put compensation in place now to create breathing space for long-term reforms.”

Mr Field pointed to £1.2bn in unspent tax credits – more than enough to meet the estimated £500,000 bill for compensating the 5.3 million losers. “It would be rough justice, but it can be done”, he added.

Mr Kilfoyle backed Mr Field’s amendment, saying: “The Government must rectify this mistake. We were not elected to penalise the working poor.”

That message was echoed by Mr Howarth, who added: “I didn’t come into Labour party politics to make low-paid workers and people who retire early poorer.”

ROB MERRICK: PAGE 13