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The Labour rebel Frank Field today apologised “without reservation” to Gordon Brown today for allowing his campaign over the scrapping of the 10p tax rate to “become personal”.

His comments came as Alistair Darling, the Chancellor, announced in the Commons that personal tax allowances will rise by £600 this year to compensate those hit by the move.

Labour backbench rebels, led by Mr Field, the former welfare reform minister, had put the Chancellor under intense pressure to come up with an adequate compensation package.

Mr Field infuriated Cabinet ministers at the weekend by saying he would be “very surprised” if the PM lasted another two years in the job. In a BBC interview, he said that Mr Brown was visibly unhappy in his position, branding it a “tragedy" and held out the prospect of a Commons defeat for the Government on the Budget without further reassurances on tax reforms.

But Mr Field today unequivocally welcomed the compensation scheme, telling Mr Darling: “Can I congratulate you for putting an end to this issue. And could I hazard a guess that the pleasure that is being expressed on this side of the House will be widely expressed in the country as well.”

He added: “As the Prime Minister is in his place, might I also add that over the weekend I allowed my campaign to become personal. I much regret that and I apologise without reservation.”

Mr Darling replied: “I am grateful for what you have said in both respects. I may say it is not every day that Members have the courage to say what you said and it is appreciated.”

He added: “I hope most people, not just in this House, but outside this House as well, will welcome this as being a substantial step as helping not just people on low incomes but also helping people who are on middle incomes - and especially at a time when they rightly look to their Government to support them in what are very difficult and uncertain times in the world economy.”

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