Brown warned on tax row 'backtrack'

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Ministers had hoped to put the episode behind them after seeing off a Tory amendment reinstating the 10p rate if there was no compensation package in place for those who had lost out by next January.

The Conservative amendment to the Finance Bill was defeated by 307 votes to 264 in Monday night's Commons division - a Government majority of 43.

However, Labour backbencher Frank Field - who last week withdrew his rebel amendment after winning a promise of compensation - told ministers that there must be no backtracking on the deal.

"We have a right to take this measure back again in our own hands when the Budget comes back again at report stage," he told the House.

Mr Field was involved in a sharp exchange with Financial Secretary Jane Kennedy after she refused to confirm that the entire package would be backdated to April 1 - the start of the current financial year.

"When you report back on this debate, I'm sure you will report that this side of the House attaches huge importance that all groups will be compensated back to April 1," he told her.

"That's an issue, which we hope we will not have to, but if need be we will return to at report stage."

The Government has promised that it will help two groups who lost out under the the changes - pensioners under 65 and low-paid workers without children.