Philip Webster, Political Editor
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Labour rebels last night claimed they had the “bit between their teeth” after humbling Gordon Brown into the biggest policy U-turn of his premiership.
Ministers warned that their backbench MPs smelt blood after forcing the Prime Minister to rewrite a defining measure of his last Budget as Chancellor to buy off the 10p tax revolt.
Rebels - sensing that the climb-down had sapped Mr Brown’s authority - threatened to exploit his weakened position, saying that he faced defeat over his plans to detain terrorist suspects for 42 days unless he listened to their concerns.
Mr Brown last night denied that he had been pushed around after an extraordinary, corrosive and crisis-ridden few days at Westminster. For the first time his future was questioned by some MPs privately.

Despite continually playing down the impact of his 2007 decision to scrap the 10p rate of tax, he blinked first in a trial of strength with backbenchers.
After suggesting initially that there could be no concessions, Mr Brown and Alastair Darling first promised unspecified help in the autumn, then said that it would come in this financial year and finally said yesterday that the package of help, which remains vague but will cost hundreds of millions of pounds, would be backdated to April 1. MPs who signed up to an amendment tabled by Frank Field requiring the Treasury to come forward with compensatory measures, claimed “game, set and match”.
Mr Field, who had had a private meeting with Mr Brown the night before to lay down the rebels’ “bottom line” demands, withdrew his amendment, stating that he had got what he wanted. He even claimed that “phase two of Gordon Brown’s premiership” - one in which he was big enough to admit he had made mistakes – had arrived.
Mr Brown, facing the Commons only minutes after the concessions were made, was cheered by Labour MPs relieved that they could go back to fighting the local elections able to show that the Government had listened to constituents.
But many MPs admitted that, having been forced to act by the fear of a Commons defeat, the Prime Minister had been wounded.
No one will ever know whether the rebels rather than Mr Brown would have blinked, understanding that to defeat Mr Brown on the Finance Bill would have triggered a genuine crisis of confidence in him.
David Cameron accused Mr Brown of a “humiliating” U-turn that meant a “massive loss of authority”. He said that Mr Brown had caved in.
But in a series of television interviews, Mr Brown insisted: “I don’t think I’ve been pushed about at all. What I’ve done is listen and made the right long-term decision.”
He emphasised that the “fundamental” change of scrapping the lowest income tax band was still going ahead.
The U-turn was announced in a letter from Mr Darling, who said that losses suffered by low-paid workers without children and pensioners aged 60-64 would be offset through the winter fuel allowance system, tax credits and the minimum wage. Crucially for the rebels, he said that the help would be backdated.
In the Commons Mr Brown said that the 10p rate was not the best way to boost the incomes of the poor, who had benefited from improvements in tax credits and the minimum wage under Labour. “The central issue is that we have taken more people out of poverty than any previous Government,” he said.
The cost of the package is unknown but is likely to run into hundreds of millions rather than the estimated £7 billion that it would cost to restore the 10p rate. Eligible pensioners are expected to receive a one-off payment on top of their winter fuel allowance, while the Low Pay Commission will advise the Chancellor on what changes could be made to the minimum wage to help younger workers.
Last night MPs weighed the implications for the 42-day vote. Ian Gibson, MP for Norwich North, said: “We are buoyed up. In the end they listened and we hope they will listen again.”
Another senior MP said: “This has shown a number of us that the system in this place actually works. We’ve got the bit between our teeth. It’s democracy at work.”
Of the 42-day vote, Mr Brown said: “It’s right on security issues, because you never compromise security issues, that we should go ahead with 42 days.
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I don't understand why anyone would vote Labour, now or in the past ??? I am old enough to clearly remember the 60's when Harold Wilson and his gang of merry morons ran the country into the ground. Thats when I left ... Thatcher at least brought the country back from the brink, who is there now?
Malcolm Cottrell, Edmonton, Canada
Does anyone trust this government to actually deliver what they promise? Yvette Cooper has already undermined what the 'rebels' believed was a 'done and dusted' deal - is there going to be a 'U Turn' on the 'U Turn'?
Rob, Birmingham, UK
So at best the poorest in the country are now going to make the government a tax free loan.
Eileen Miller, Rochdale, England
This lot's reply to ANY problem is, "it will be reviewed".
Please, everyone, reply in the only way that might depose Brown, that is, vote for anyone but Labour at the next elections. A big defeat might unseat him.
Just be determined to do what you can about this lot of unjust ditherers.
James, Leeds, UK
I am £200 pa. worse off....being in the 60-65 bracket....that is £400 over two years.
I shall be compensated at an AVERAGE rate of loss...it remains to be seen whether I accept the compensation.
Elizabeth Philips, Halifax, UK
Weasel words from a thoroughly dishonest government.
As Cameron said, with Gordon Brown, make sure you read the small print - only a very few of the 5 million people who lose out will be compensated, and most of the "compensation" is at some undefined time in the future...
Peter, London,
It's just the begining for this chump. This will be his summer of discontent. Expect more public sector strikes - teachers, council workers, firemen, etc. And expect more fuel shortages as more oil refineries strike. At each and every turn he will crumble. He's like a fat boxer with a glass jaw.
RJA, Nottingham, UK.
Simple solution
-Raise the tax free allowance to £12,000
-Abolish the 10p tax rate
-Abolish the tax credit system.
This has the advantage you don't tax the poor at all, you don't take money from people to give it back in credit, and it is FAIR and SIMPLE - no-one loses - not even the taxman.
Peter, London,
Look at his face!
CANNIBAL Brown is coming for you, next.....
ahahahahahah
riccardo, brussels,
I am a 58 yr old practice nurse and work part time in general practice-I have elderly parents.my salary today was £13 pounds less which with rising bills is devastating.Shall never vote Labour again and have written to our MP-labour!
christine mcardle, birmingham, UK
To Brian Lec."Taking to much tax off and paying it back in a selective fashion" is classic socialist thinking, a heavy handed attempt to redistribute wealth (and of course) keep lots of civil servants in jobs. Raise the tax thresholds to over 10k and have just two tax band, basic and higher
Mick Boon, Grays, England
I am 57 and retired. I have a pension of £11k pa. This will not benefit me and I am still about £230 pa worse off. Brown's sly tricks at the last budget has done this. For many like me, this is yet another stealth tax. I have only ever voted Labour, but will never do so again.
tony whyte, cambridge,
Raise the level at which people start paying tax .....keep the 20p limit and do away with this over complicated/expensive tax credit system . I pay more than my fair share of tax ....I couldn't care less if a vast number of people didn't because their earnings fell short of the tax threshold .
Alexander Mackie, London , UK
Surely this should be all pensioners
E.MANN, darlington, DURHAM
The abolition of the 10% rate was announced over a year ago! I am astonished that MPs have got the nerve to admit they have only just noticed how significant it is.
Martin Lowdon, Leicestershire,
One of the solutions put forward by Brown and his gang of chancers to make up for the abolition of the 10% tax rate is to increase the minimum wage, another words get business to pay for Labours mistakes. You really are a disgrace Mr Brown and the sooner you are out the better!
Simon, Nottingham, England
A life-long Labour voter I will not be voting for them in the forthcoming local or future general election.
Labour MPs and councillors deserve everything they get at the polls having made themselves subservient to Gordon Brown's ambitions.
Was it so difficult to see that he wasn't up to the job?
Mike S, London,
Anne, Gateshead
Because the tax personal allowance for pensioners aged 65-74 is £9,030 whereas for pensioners under 65 it is just £5.435. I'm sure many pensioners under 65 would be willingly pay tax at 20% on anything over £9,000 pa.
matilde, London,
Listening and humbled?
You must be joking! He's aware of how close polling day is.
Dek Crossingham, Birmingham, England
Mr Brown and Mr Darling seem refreshed after their respective holidays in the US and China. Let's hope they now also remember their referendum promises, rail and air transport crises, post office closures, utilities rip-offs, banking and mortgage fiascoes... May Day, May Day, May Day......
MIke L, Chippenham, Wilts
Just go Gordon and take your mates with you.
Mal, Derby,
I think its about time that people did what our forfathers did in the distant past, have a tax revolt. This man is like an obsessive where he has to tax every thing that moves. So were often being double taxed which is against the very principle of taxation.
Jas, Alders, UK
"Why only pensioners between 60 and 64. I'm 70 and get nothing back... "
And there we have it. This may look like a U-turn, but it's not. A lot of people aren't actually eligible for "compensation", so that's more money for the government.
M.R., Stockport,
Brown's "authority" is non-existent, as he has never been elected as PM by the voters in a General Election or as leader by his own party in a formal election.
Unless he now caves in to his rebels on every contentious issue, I can't see him lasting until Election 2010.
Roy Pinney, Weston Super Mare,
This does nothing for those forced into early retirement and then on a low income through no fault of their own. It is still bashing the poor to pay for everyone else's lavish lifestyle.
alan nicholls, Honiton, England
As I don't fall into any of the named categories how are the new measures going to help me?
Yet again marginilisation.
Sue Taylor, Banbury, Oxon
Why only pensioners between 60 and 64. I'm 70 and get nothing back...
Anne, Gateshead, Tyne & Wear
So, the "clunking fist" received an uppercut from his party, went down, got up and attempted to con the referee that he was fit to continue.
No chance.
He's out and the electorate know it.
A.Williams, Stafford,
Its a sad day for me. All my life I've voted Labour but after watching that horrendous Gordon Brown over these last few weeks I shall not go to the polls . We are a family who are trying to put two boys through Uni on an income of less than 30 grand. We will have to starve to do it
Dee, Hemel Hempstead, UK
Having messed up with the abolition of the 10% rate and not increasing tax thresholds. Brown now wants to distort the job market further by manipulating tax credits and the minimum wage. What is wrong with this Government, can't they do anything logically and above all simply?
John, manchester,
Actually he has not caved in. He has simply said he "MAY" think about compensating som (by no means all) of those harmed by his wilful and callous proposal.
Jam tomorrow is jam never.
PJW Holland, London,
The winter fuel payment is just that not a compensatery device.
Why would younger pensioners get a larger winter fuel payment than other older pensioners?
John , King's Lynn, Norfolk
Gordon Brown is an embarrassment. I can't wait to help kick him out of Number 10 - and his bunch of useless ministers with him.
At least Anthony Eden must be smiling in his grave. He will no longer be listed as the worst Prime Minister since 1900!
Lester May, London , UK
However did he get voted in?
Oh that's right, he didn't!
Paul, Singapore,
The cheque Frank Field has been given is soon going to bounce.
Well, it would do if there was a time limit on it, or even an amount specified.
As far as I can see Brown and Darling haven't committed a penny.
What a truly shameful episode in Labour's history.
David Steel, Edinburgh,
"And despite all the posturing the reality is unchanged. I earn seriously the right side of £100000p.a. and will be £250 better off. "
I earn £8k pa and will be £250 worse off, with little hope of compensation going by what Darling has promised.
But it's my own fault for not having kids I suppose.
Jeff Downs, Edinburgh,
Having seen Yvette Cooper on Newsnight it is clear that Frank Field has been mislead. He appears to think that all those who have lost out are to be recompensed and that it will be backdated for everybody back to April. Both statements are clearly incorrect . Go back for clarification Frank!!
Roger, hull,
If Mr Brown has made a mistake and recognises he has made a mistake, then he should come out and say so.
He can't keep up the pretence that he has been acting in everyone's best interests when, after regularly backtracking on policy proposals as serious as these, he continues to fail to learn.
thomas, london,
Hi,
One gets the impression that Mr. Browns government is introducing measures that people walk on there hands so the money falls out there pockets. Medically such is thinkable.
Regards Dr. Terence Hale
Terence Hale, zandvoort, Holland
Given that only 396,000 people will be affected by the changes announced so far that leaves 4.6 million still to be dealt with. Either that or somebody's telling great big, no, huge....untruths. Anyone watching Yvette Cooper on Newsnight could have a good stab at the truth.
judy, Liverpool, England
And despite all the posturing the reality is unchanged. I earn seriously the right side of £100000p.a. and will be £250 better off. The postman on £16000pa will be around £150 worse off. Its immoral, its wrong and despite all the posturing the outcome remains unchanged!
Chris H, London, UK
People like myself and my mother are still no better off. We're not yet 60, I don't have a family and I already earn a lot more than the minimum wage (but nowhere near £19k).
Colin Haywood, Seaford, UK
This PM cannot be trusted. 75p for pensioners, ruined company pension schemes, Referendum promises which disappeared, Northern Rock disaster and now robbing the poorest members of our society. That's his record for prudence. People should ask what has he promised the poor? Can you trust this PM?
W S STEWART, SANDBACH, CHESHIRE
Remove the 10p rate, increase the level at which people start paying the 20p rate, and stop handing so much back as "tax credits".
At the moment Brown takes with one hand so that he can dole it back out with the other, wasting millions in the process, and creating a reliance on benefits.
Toby, Newport,
More smoke and mirrors!
The compensation for 60-64s will be "backdated to the start of the current tax year" but will be arranged through the winter fuel payment - which won't be paid until, er, next winter. Meanwhile, they'll have a few hundred pounds less with which to pay for their summer fuel.
Liz Walls, Glasgow,
Typical, the so called 'principled ' MPs cave in as soon as their leader says or implies 'something will be done'.
Their constituents will hear no more about it and like so many other NuLabour wheezes it will fall in the long grass never to be seen again.
Howard , Basildon, England
This all came about because of Brown's posturing and spin and now he keeps on with the macho posturing and spin to the bitter end. Why can't he just admit he made a mistake?
This is just like the election debacle. Has he not learnt that lesson? If he can't learn lessons should he keep his job?
Paul Owen, Birmingham, UK
If it has anything to do with brown's tax credits, it will be too complicated to actually get and knowing how sneaky this guy is, I bet money it wont cost them much in money ;-)
Graham, London, UK
Good one
Dan, jersey,
None of which help me! Browns's still taking more from us all to give 'generously' give back to a few. All the while skimming off a load to pay for all the extra pen-pushers (and captive Labour voters).
But of course, the cheap and easy option - just keeping the 10p rate - will never do...
Anthony, Birmingham,
Stop penalising people that do not have children and do something about the exploitation of thousands of low paid School Support workers,who now undertake the roles which teacher are no longer allowed to do. The majority of these workers are single parents doing their best for the future generation
Tel, Dartford, Kent
Just another example of "I am not for turning" followed a rapid retreat from this dithering, incompetent PM. I still await to see what the MPs get. Incidentally, how much are these new measures going to cost? I suspect it will probably cost far more than leaving the 10p band in place.
M. Cawdery, Portadown, Co. UK, EU.
To late Mr Brown!
We sent our postal election forms on Monday.
R HEWITT, Erith,
Taking too much tax off and then paying it back in a selective fashion is muddled thinking. If anything 10p is too high a rate for persons just above the free pay threshold? Why not 1% rising by 1% up to 5% before jumping to 10 and 20 later on. Field & Co gave in too early. I smell fudge.
Brian Lec, Brighton, England
There are no actual commitments to doing anything. Just a promise to have a look at the situation. And why should businesses have to bear the cost of additional taxation of the poor through an increased minimum wage? I find it rather self-serving that the Labour so-called rebels have just caved in.
Donald, Maidstone,
If under 25 year olds and pensioners between 60-65 years of age get it.
What happens to disabled people between the ages of 25 and 60?
Some of these disabled people are paying 50% tax on their pensions, a lot more than working people, any money over £85.00 is taxed at 50pence in the pound.
M Smith, Glasgow, Scotland
when the pension service in wales make mistakes with our pensions , and stop paying what we are intitaled to be cause of their mistakes and you have to borrow money to pay your bills , a yesr later they do not repay the intrest on the loans you were forced to take out , but they inform the tax offic
tom carson, milton keynes, buckinghamshire