Labour grapples with party unrest ahead of key votes

THE SPECTRE of defeat over the detention of terror suspects was revived yesterday as the Labour government battled to avoid a…

THE SPECTRE of defeat over the detention of terror suspects was revived yesterday as the Labour government battled to avoid a backbench rebellion in a crucial budget vote ahead of next week's local and London elections.

Some Labour MPs declared themselves still unconvinced even after Metropolitan Police Commissioner Sir Ian Blair told a committee of MPs that "sooner or later, and maybe sooner" the present 28-day limit for holding suspects would prove inadequate in the face of increasingly complex terror plots against the United Kingdom.

At the same time the DUP and SDLP increased the pressure on prime minister Gordon Brown ahead of next Monday's crucial vote on the finance Bill. They have signalled their intent to vote with Labour rebels, Conservatives and Liberal Democrats against the contentious abolition of the 10p income tax band. The counter argument against this measure is that an estimated 5 million low-paid workers will be worse off.

Defeat next week could fatally undermine Mr Brown's authority as prime minister, while the resulting political crisis could kill off the party's hopes of winning a fourth term.

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Ironically, and to Mr Brown's frustration, the latest bout of Labour infighting and instability coincided with an ICM poll yesterday cutting the Conservative lead over Labour from 13 to just 5 points in the last month.

While Labour is resigned to heavy losses in next week's council elections in England and Wales, the latest London polling also has London mayor Ken Livingstone neck and neck with Tory challenger Boris Johnson in the battle for the mayoralty.

However, opponents of the tax change seem determined to maintain the uncertainty into election week by way of backing an amendment, tabled by former minister Frank Field, demanding a back-dated compensation package for those who will lose out.

Chancellor Alistair Darling and other treasury ministers have begun a series of meetings in an attempt to persuade potential rebels that the government can find ways in future budgets to help those affected by the tax change introduced by Mr Brown last year in his last budget as chancellor.

The prime minister's spokesman said the government would be "working hard" over the coming days to avoid defeat, after chief whip Geoff Hoon told the cabinet it was important that ministers explained the government's position to those colleagues who had concerns.

Mr Brown's spokesman, however, was reticent when asked if the prime minister regarded this as a "confidence vote", saying simply that it was "important".

The political reality had already been spelt out by John McFall, Labour chairman of the treasury select committee, who said it would amount to "anarchy" for Labour MPs to vote against the tax change after the tax year had already started and tax codes had been set.

Mr Field countered that the proposed division on the issue was not about defeating the budget but rather ensuring that it went through. "But, as it goes through, we want a commitment from the government that those maybe five million plus people who lose out as a result of the abolition of the 10p rate will be compensated for that loss and that that compensation will be backdated to the beginning of the financial year," he said.

While the spotlight is on the immediate danger to a key provision in the finance Bill affecting this year's budget, ministers appear to have bought more time in which to try to persuade Labour doubters of the need to extend the detention of terror suspects in some limited circumstances from 28 to 42 days.

A vote on the issue is now expected in early June.