PM confronts rebels amid poll gloom

Despite growing internal anger over the abolition of the lowest income tax band, the Government has all but ruled out concessions to help low earners.

Foreign Secretary David Miliband - often touted as a possible replacement for Mr Brown - attempted to quell dissent by issuing a plea for unity ahead of crucial local elections, urging MPs "to defend each other and our leader".

But as the Prime Minister gambled on rebels baulking at inflicting a disastrous Commons defeat on the Government, a poll suggested that the sniping and economic gloom are already taking their toll.

Research by Populus for the Sunday Mirror found Labour had slumped three points in less than a fortnight, and now trailed the Tories by 40% to 30%.

Amid dire predictions of a property crash and slowdown, Mr Brown also saw his prized reputation for economic stewardship weaken further. Some 31% of people now believe David Cameron's team would be best to steer Britain safely through the credit crisis, compared with 29% who back Mr Brown and Chancellor Alistair Darling.

The Government finally took a hard line on the 10p rate row on Saturday after days of confusing signals from Number 10 and Number 11.

Treasury minister Angela Eagle hinted at a compromise on the controversial issue on Friday, suggesting that those hoping for movement should "watch this space".

However, Treasury Chief Secretary Yvette Cooper slapped her down by appearing to rule out either reversing the changes - which were announced in last year's Budget - or offering compensation to the worst affected.

Some 70 backbenchers and six ministerial aides have publicly expressed concern over abolishing the lowest tax band, amid warnings that millions of society's poorest will be hit.