Darling defies tax rebels

Alistair Darling defied Labour's 10p tax rebels by ruling out immediate concessions for hard-hit low earners.

The Chancellor insisted it was not possible to "unravel" the financial package announced last year, despite widespread discontent on the Government benches.

But Mr Darling did attempt to defuse the burgeoning crisis by insisting he wanted to do more for the poorest in the next Pre-Budget Report.

The intervention came as Foreign Secretary David Miliband issued a plea for unity ahead of crucial local elections on May 1, warning Labour faced defeat at the polls if it "argued among ourselves, failing to defend each other and our leader".

Speaking on BBC One's Andrew Marr show, the Chancellor said the Government had an excellent record of helping Britain's poorest.

"In future Budgets, maybe in future Pre-Budget Reports, I also want to do more because I attach considerable importance to making sure that we help people on lower incomes," he said.

"What I cannot do is to rewind the Budget. The financial year has already begun. There are millions of people who are already paying tax at 20p rather than 22p.

"It simply isn't possible as you go into a financial year to unravel the whole thing and attempt to rewrite it."

Mr Darling denied the Government was in the middle of a "car crash", and said he believed it would win any vote on the issue - despite some 70 MPs publicly expressing concern over abolishing the 10p rate.