by Chris McLaughlin
LABOUR MPs are lining up to provoke another high-wire House of Commons confrontation with the Government, following this week’s emergency measure from Chancellor Alistair Darling to head off a possible defeat over the 10p rate.
The announcement of a compensation package for pensioners and young people just before Tribune went to press was sufficient to prevent a damaging defeat for the Government in Monday’s critical vote on the Budget clause.
Frank Field, who had put down an amendment which called for compensation for up to 5.3 million poorer tax payers who are losing out as a result of the measure, withdrew it and said: “The chancellor’s statement is to be welcomed.”
Mr Darling promised to backdate the compensation to the start of the financial year, when the changes came into effect.
But while Downing Street aides were relieved and whips expressed confidence that the move had seen off a full-scale rebellion on Monday, another immediately loomed over the proposal for 42 days’ detention of suspected terrorists.
Critics argue that Gordon Brown made a serious tactical mistake in effectively designating Monday’s vote on the 10p tax a vote of confidence on the grounds that no Government can afford to have a key element in its Budget – unravelling all the other parts of it in the process.
They say the ultimate weapon can only be played once in a Parliament and that it will have little effect if Downing Street attempts to deploy it again in the vote over 42-day detention.
While MPs will continue to press right up to the vote on Monday for greater detail on the compensation package, importantly who it will cover and in what proportion of their losses, whips are working to head off what is threatening to be another humiliating defeat for the Government.
Mr Brown – whose assertion at a meeting of Labour MPs three weeks ago that no one would be worse off ignited the fury and bewilderment of MPs – and Mr Darling were eventually persuaded to proffer a backdated compensation package because of the strength of feeling in the party (see pages 14-15) and because of warnings that failure to produce something concrete before the local elections on May 1 would deliver even more disastrous votes than are expected.
Mr Field has insisted the Treasury could find an initial £1.2 billion for compensation from that amount of unclaimed working tax credits currently on its books.
On Monday Mr Brown interrupted his official schedule to make a second appearance before the Parliamentary Labour Party in three weeks. Those present said the Prime Minister displayed a much more conciliatory tone and was determined to prove that the Government does listen and does indeed “get it”.
A narrowing of the opinion poll gap between the Tories and Labour showed that the Government rode out the tax row, largely due to the concern displayed by the party and MPs.
