Labour MPs continue battle over 10p income tax band

The government will face stiff opposition from Labour MPs this week as it attempts to remove the 10p income tax band.

A spokesman from Downing Street said that Chancellor Alistair Darling would meet with the ministers threatening to rebel, after it emerged that some 39 Labour MPs have signed a motion to oppose the Finance Bill.

They believe that abolition of the lowest tax band will leave the lowest earners worse off, and could be ready to overthrow the proposal in a vote, despite the fact that the government has promised to look for ways to help those most affected by the change.

Chief secretary to the Treasury Yvette Cooper said that the measures, introduced in Gordon Brown's last budget as Chancellor, would leave the "majority of households" better off.

"These are major reforms and the majority of households are better off or the same, though some are paying more as a result of this package," she said, as the bill was opened up for its second reading debate.