PM returns to confront tax revolt

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Ministerial aides have broken ranks, ignoring a plea for unity ahead of the May 1 local elections, to publicly speak out against the change which could leave five million low-paid families worse off.

Chancellor Alistair Darling is said to be aware of MPs' concerns, but tight public finances leave him little room to manoeuvre.

A Treasury source said the Chancellor hopes that "in the fullness of time" a solution can be reached, but any scheme to redress the situation could cost up to £8 billion a year.

The source said Treasury officials are looking at what could be done, but the Chancellor would not be able to "pull a rabbit out of a hat" and added "it will have to be a long-term solution".

Schools Secretary Ed Balls, one of Mr Brown's key lieutenants, called for an end to the public row. He said: "The efforts of local councillors and shadow leaders should not be undermined by this kind of indulgent nonsense."

But a number of Parliamentary Private Secretaries - the lowest rung on the ministerial ladder - spoke publicly about their reservations over the decision to scrap the 10p rate.

Jeff Ennis, aide to Cabinet Office Minister Ed Miliband - one of Mr Brown's closest allies - said "everybody has concerns" over the decision.

Celia Barlow, aide to Science Minister Ian Pearson, has written to Mr Brown about the issue and Dave Anderson, PPS to Higher Education Minister Bill Rammell, said "we are doing the wrong thing here". Stephen Pound, PPS to Employment Minister Stephen Timms, said the issue had become "corrosive" and there was a "groundswell" of opinion about it.

The Prime Minister was forced to interrupt his US schedule to speak to Angela Smith, PPS to Treasury Chief Secretary Yvette Cooper, by telephone from The White House after she reportedly told colleagues she was set to quit.