Tax rebels raise pressure on Brown

Rebels in Britain's ruling Labour party yesterday threatened to inflict a damaging parliamentary defeat on Prime Minister Gordon Brown, further undermining his sagging authority. Mr Brown, struggling in opinion polls, faces a revolt from members of his own party over changes to income tax that are expected to leave some five million of Britain's poorest households - Labour's traditional support base - worse off.

"A large number of people - the people we have always stood up for and fought for - are feeling let down," Ian Gibson, one Labour politician worried about the tax change, told the BBC.

Senior party figures warn in-fighting over the tax changes and plans to alter terror detention laws are fuelling discontent among voters and this could hurt Labour in local council elections next week.

The May 1 elections will be closely watched as an indicator of what could happen in a general election with Mr Brown, who succeeded Tony Blair in June, at the helm for the first time.

Mr Brown, who served as Finance Minister for 10 years under Mr Blair, has seen his reputation for sound economic management dented by the credit crisis and slower growth. Critics accuse him of indecisiveness. Failure to quell the party rebellion and a poor poll showing next week would fuel speculation about whether he is the right man for the job.

Labour parliamentarian Frank Field has signed up 39 rebel lawmakers to an amendment which would compensate those worst hit by the abolition of the lowest 10 pence tax rate, enough backing to force Mr Brown into an unwanted compromise.

Labour, more than half way through its third consecutive term in office, has a working majority in Parliament of 67. Mr Field may be able to force through the tax compromise if opposition parties support the amendment.

Defeat on the tax issue could trigger a confidence vote, potentially threatening to bring down Mr Brown's government, but dissident Labour lawmakers would be likely to rally round Mr Brown in that case.

One glimmer of light for Mr Brown came yesterday in an opinion poll in the Guardian newspaper that showed Labour clawing back some ground from the Conservatives compared with a month ago.