Brown faces Labour rebellion over 10p Tax Rate

9.00.00am BST (GMT +0100) Fri 18th Apr 2008

Gordon Brown [Image: Rex Features]

Gordon Brown was warned that he will face an unprecedented rebellion by Labour MPs if he does not do something to help the five million people who are losing out from the abolition of the 10p starting rate of tax. The Prime Minister last night managed to persuade Angela Smith, a parliamentary aide to the Treasury minister Yvette Cooper, to withdraw her threat to resign over the issue. Brown took time out of his US engagements to talk to Ms Smith personally on the phone.

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. But it is a pity that it took Angela Smith a full year to react to Gordon Brown's callous decision when we warned the Government of its consequences on the very day it was announced in the Budget."