The 10p rate of tax was brought in before the days of tax credits. Because the 10p rate helped all taxpayers it was at best a blunt weapon in the fight against poverty. Since tax credits were introduced, the poorest third of families with children are up to £80 per week better off and the poorest third of pensioners £40.

Given the 2p fall in basic rate tax, the rise in the national insurance threshold and the big rise in pensioners' tax-free allowance the package as a whole affects relatively few people adversely.

I raised my concern about the loss of the 10p band on people on very low incomes with the PM again at the Parliamentary Labour Party meeting last week. The Chancellor has now agreed to help other low income groups, principally young workers with no children, part time workers and wome n aged 60-64. Details will be agreed with the Treasury Select Committee and backdated to 1 April.

The Liberals' proposal, to bring back the 10p rate, will not help the very poorest but will give MPs an extra £200 a year: crazy or what? In the last 12 months the Conservatives have supported, opposed and abstained on the abolition of the 10p rate.

I am often criticised for toeing the Party line. I am committed to the Labour Party and our manifesto. It is precisely because my criticisms are very selective that ministers listen to me when I do speak out. Serial rebels do not have that influence.

I spoke out because I wanted my government to get it right; I am delighted that ministers have listened. Now we can move on.