Darling defends 10p tax move

Alistair Darling has said he could not "rewrite the Budget" amid criticism of the abolition of the 10p tax rate.

The chancellor said he would not be reversing the move, which was announced in last year's financial package and came into force earlier this month.

Some 70 MPs have raised concerns that abolishing the 10p rate could leave poor people worse off.

But Darling pledged "to return" and use future Budgets to help affected people on low incomes.

"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 told BBC 1's Andrew Marr show.

"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."

Pointing to the introduction of tax credits and the minimum wage, the chancellor called on Labour critics to look at the move alongside the government's other policies to help low earners.

"What I'm saying to my colleagues is look at what we've done over the last 10 years,"he said. "No-one will dispute that we have done more than any other government to help people.

"In relation to this year I have said I cannot rewind the Budget. It would be totally irresponsible to unravel everything and start from scratch."

The news comes after foreign secretary David Miliband used an article in the News of the World to call on Labour to unite behind the prime minister.

Miliband praised Gordon Brown's "strong values and deep convictions" but warned that Labour could be defeated if the Party "argued among ourselves, failing to defend each other and our leader".

Shadow chancellor George Osborne told the Marr show that the Conservatives wanted to put "maximum pressure on the government" over the 10p tax rate.

"We know thanks to the pressure we exerted earlier this year on issues like capital gains tax that if you push this chancellor enough, he gives way and I think it is manageable to come up with a tax package that protects those on low incomes," he said.

"They shouldn't be the people who are paying the price for the government's economic incompetence."

He said that Mr Brown's government "feels like a government that has lost its way and lost touch with people".