Labour MPs warned last night prime minister Gordon Brown has until the end of the week to offer immediate compensation to low-paid workers who have been disadvantaged by the abolition of the 10p tax rate or his budget will be rejected by Parliament.

At a private meeting yesterday with more than 50 Labour MPs, chancellor Alistair Darling promised sweeteners, planned for the autumn’s pre-budget report, would take effect immediately rather than next year, as determined by HM Treasury, The Daily Telegraph reports.

But Darling acknowledged last night that, despite making further concessions, he had failed to win over any significant numbers of the rebels, led by Frank Field.

Field has tabled an amendment to the finance bill, demanding ministers take measures to ‘ensure no person is worse off’ because of the 10p income tax rate’s removal.

Further reading:

PM tries to calm troubled tax waters

Read story in The Daily Telegraph