Unrest over end of 10p tax rate

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Tory leader David Cameron also stepped up his attack on the change, which he hopes to make a key feature of his local election campaign. The removal of the 10p rate for the lowest paid, which came into effect on Sunday, was "kicking people when they are down," Mr Cameron said.

The Conservatives have produced a leaflet detailing the cost of the change which will be delivered to voters in key target seats ahead of May 1's elections.

Mr Cameron said: "Now is absolutely not the time to be hitting 5.3 million families with an extra tax burden."

He said the Tories would try to reverse the abolition of the 10p rate in Parliament and appealed to MPs from all parties to join with him.

Prominent Labour figures also attacked the change, with former welfare reform minister Frank Field claiming there was "growing unease" within the party.

Ken Livingstone, the Labour London mayor presently seeking a third term in office, joined the criticism of the policy, telling BBC Radio 4's The World At One: "If I was a Member of Parliament I would be joining the rebels because of my commitment to a fairer tax system.

"Most Londoners will know that one of my biggest criticisms of the Labour Government when it came to office was that it had this policy of sticking with the Tories' tax structure and I have always argued that people earning over £100,000 should pay more tax - I would like to see a progressive system. People at the bottom should pay less; people like myself and others should pay more."

The influential Commons Treasury Select Committee said low-paid workers without families would be hardest hit by the tax changes, which were first announced in last year's budget.

The abolition of the 10p rate enabled Mr Brown to cut the main rate of income tax by 2p to 20p, with tax credits to alleviate the impact on the poor. However, the committee said that households without children or anyone over the age of 65 on incomes of under £18,500-a-year would lose out as a result of the changes.