Last night the Government gave a fierce defence of the abolition of the 10p tax rate claiming it would bring down the budget and lead to tax chaos.

“The fact of the matter is however that Brown’s bloody mindedness and determination not to reverse this damaging cut will only serve to punish further in this recession many of those who have suffered most already. ”

The Government defeated the amendment to restore the 10p basic rate by 43. Lib Dems and Tories were joined by a number of Labour rebels led by Frank Field.

“A good Government must always be prepared to listen, however increasingly, Brown’s bunker mentality is leading to entrenchment and lip service, the result of which is leading to more and more suffering for those in the front line in this recession.

“Last nights “win” for Browns failing Government was a hollow victory confirming once and for all that Labour are no longer prepared to fight for the poor, the disadvantaged and the vulnerable. ”