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Climbdown over 10p tax leaves Brown on the ropes
GORDON Brown was last night warned his troubles were not over yet after being forced into a humiliating climbdown to resolve the 10p tax row.
As the Prime Minister moved to restore his authority, rebel MPs were still demanding further details of the measures to help low earners hit by the scrapping of the 10p tax band.
One Yorkshire backbencher warned the issue might already have cost Labour votes in next Thursday's local elections.
But with Mr Brown's premiership under fire following the damaging row, the man who ran his leadership campaign said local elections and dealing with the housing market were more significant challenges for the Prime Minister, while another rebellion is also looming over detention of terror suspects.
Mr Brown insisted the "fundamentals" of the Budget were still intact last night as he denied being "pushed around". But the Tories accused him of a "massive loss of authority" after the Government said it would consider helping the 5.3 million people affected through changes to the Winter Fuel Allowance, tax credits or the minimum wage.
Some compensation will be backdated to the start of the financial year, although there were no guarantees all victims would be helped and no indication how the package will be funded as economists warned there is little financial room for manoeuvre.
After days of refusing to budge, the changes outlined in a letter from Chancellor Alistair Darling to Treasury select committee chairman John McFall were enough to convince former Minister Frank Field to withdraw his amendment – backed by 46 Labour MPs – which had called for compensation and threatened Mr Brown with his first Commons defeat.
Labour MPs welcomed the move, but there was still anger from some of the rebels that it had taken so long to climb down. Linda Riordan, MP for Halifax, said she wanted more clarification, adding: "This has done a lot of damage. We've got to do more listening, and when we listen we've got to take action.
"Postal votes were on the doormats last week so lots of people will have already voted in local elections – we can't retrieve those if they voted against us because of the 10p tax."
Barnsley Central MP Eric Illsley, who also threatened to rebel, said the Government must now produce concrete action within weeks. "Any sort of protestations from the Prime Minister of us being the party of the low-paid, to take people out of poverty, have been negated by this," he said. "People think we've turned our back on them and kicked them in the teeth."
Former Shipley MP Chris Leslie, who ran Mr Brown's leadership bid, said: "I don't think it's been a comfortable time for the Prime Minister at all.
"I think there are big issues coming up on the horizon – local elections, the housing market which will be even bigger tests than the 10p tax.
"Who would be Prime Minister right now? It's a very tough job and he's under attack from a lot of different quarters. The question is going to be the tactics he uses to regain momentum."
Under the changes – announced minutes before Prime Minister's Questions –
THE CONCESSIONS
What the Treasury is considering to curb 10p tax revolt:
Help for pensioners aged 60-64 through Winter Fuel Allowance, backdated to April.
Changing tax credits system to help other losers from Budget changes.
Low Pay Commission to look at minimum wage.
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Saturday 26 May 2012
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