The UK Government's charm offensive with the 10p tax rebels was stepped up last night with a clear signal that compensation for the low-paid will come in this financial year.
There were also suggestions by MPs that Alistair Darling, the Chancellor, might consider backdating the compensation to those affected.
As he and other ministers sought to calm fevered Labour brows on this controversy, Lord Goldsmith, the former cabinet minister, stoked up heat on another by launching a remarkable attack on the proposal to extend pre-charge detention of terror suspects to 42 days. Reports also suggested the key Commons vote on this contentious issue had been put back still further from May to mid June.
At Westminster, Mr Darling addressed around 50 ministerial aides and Labour backbenchers concerned over the 10p tax issue in a committee room. Geoff Hoon, the Chief Whip, was also present.
The Herald was told by a senior Treasury source: "He expects to address the problem in the Pre-Budget Report (in the autumn). That would apply within this financial year."
The source stressed how a range of options was being looked at but did not confirm that backdating compensation was being considered.
It was still unclear last night whether or not the charm offensive would work as some disgruntled MPs wanted more detail about the compensation package and a clearer sense of timescale.
However, one leading rebel told The Herald that some of the 39 back benchers who had put their names to the rebel amendment had done so simply to "concentrate ministers' minds". The motion tabled by Frank Field, the former Welfare Reform Minister, calls for immediate compensation for the low-paid who face higher taxes as a result of the scrapping of the 10p rate. One disputed estimate puts those affected at 5.3m.
While the MP acknowledged there would be a rebellion next Monday in the vote on the Budget Bill, he argued that there was no real chance of a government defeat just days before voters in England go to the polls in the May 1 local council elections.
Mr Darling emerged from the meeting with MPs, saying only how it had been "very useful". Mr Hoon, asked if the problem had been sorted, replied: "Of course."
Ronnie Campbell, the Labour MP for Blyth Valley, declared: "It's going to be sorted, no problem, by the end of the financial year."
A colleague added: "People want to know that no-one is going to lose out and that means compensation would have to be backdated. That's what MPs are concentrating on now."
Katy Clark, who represents North Ayrshire and Arran and who is among the 39 rebels, told The Herald: "I want to see the government coming forward with proposals that ensure no one on a low income is worse off with the abolition of the 10p tax rate. I hope it will come forward with further measures this week. We need more detail."
By coincidence, ministers appeared yesterday to have been thrown a possible lifeline by the Labour-led Commons Treasury Committee. It announced an inquiry into the impact of Budget measures on low-income households, particularly those affected by the scrapping of the 10p tax.
Significantly perhaps, it said it would produce its conclusions before the final Commons vote on the bill, expected in June, which means MPs trying to avoid voting against the government next Monday on the Field amendment now have an extra excuse to wait.
Elsewhere, Lord Goldsmith, the former Attorney-General, dismissed the proposed review system on 42 days - which would see MPs and peers asked to back the Home Secretary's decision to increase the limit - as "not a great deal of a safeguard" and asked: "Are you going to ask parliament to simply trust the Secretary of State?"
Giving evidence to the Commons committee examining the Counter-Terrorism Bill, he said: "The case has not been made out for that extension and I can't personally support it."
Mohammad Sarwar, the Labour MP for Glasgow Central, also made clear his opposition to the extension.
Pointing out how over the last year there had not been a single case which would have needed an extension, Mr Sarwar declared: "It's totally unnecessary and will alienate the Muslim community."
The tax dissenters
THIRTY-NINE Labour MPs have signed the rebel amendment - enough to overturn the government majority if it is forced to a vote next Monday.
Alongside Frank Field himself, signatories include former ministers Kate Hoey (Vauxhall), John Battle (Leeds West), Mark Fisher (Stoke-on-Trent Central), Peter Kilfoyle (Liverpool Walton), George Howarth (Knowsley North and Sefton East) and Janet Anderson (Rossendale and Darwen), as well as former deputy leadership contender Jon Cruddas (Dagenham) and John McDonnell (Hayes and Harlington), who last year failed in his attempt to mount a leadership bid against Mr Brown. Also on the list were Greg Pope (Hyndburn), whose early-day motion first revealed the scale of opposition to the abolition of the 10p rate, Ms Stuart, Mr Prentice and Mr Mackinlay.
Other signatories included Ann Cryer (Keighley), Jon Trickett (Hemsworth), Jeremy Corbyn (Islington North), Paul Farrelly (Newcastle-under-Lyme), Ian Gibson (Norwich North), Dai Havard (Merthyr Tydfil and Rhymney), Austin Mitchell (Great Grimsby), Marsha Singh (Bradford West), David Taylor (North West Leicestershire), Alan Simpson (Nottingham South), Karen Buck (Regent's Park and Kensington North), Jim Dobbin (Heywood and Middleton), Roger Godsiff (Birmingham Sparkbrook and Small Heath), David Marshall (Glasgow East), Diane Abbott (Hackney North and Stoke Newington), Geraldine Smith (Morecambe and Lunesdale), Betty Williams (Conwy), David Drew (Stroud), Michael Connarty (Linlithgow and East Falkirk), Jim Dowd (Lewisham West), Paul Flynn (Newport West), Fabian Hamilton (Leeds North East), Chris McCafferty (Calder Valley), Linda Riordan (Halifax), Mike Wood (Batley and Spen) and Katy Clark (North Ayrshire and Arran).
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