We're betraying the poor, warns Field; Wirral MP loses final battle on 10p tax.

Byline: ROB MERRICK

FRANK FIELD''S bid to win compensation for victims of the 10p tax rate fiasco fizzled out last night, after dire warnings that the entire tax system would be brought crashing down.

The Gover nment comfortably saw off a revolt led by the maverick Birkenhead MP, when his amendment to the Finance Bill was defeated by 311 votes to 268 - a majority of 43.

The result - more than two years after the row over the 10p rate first blew up - was immediately condemned by Mr Field as a betrayal of Labour''s historic mission to help the poor.

However, he also conceded it finally closed the curtain on the controversy, even while warning that Gordon Brown would pay a price at next year''s general election.

With up to 40Labour backbenchers backing Mr Field''s amendment, together with the Tories and Liberal Democrats, the Gover nment had faced the prospect of a humiliating defeat.

If passed, it would have forced the Treasury to come up with detailed compensation proposals before the Commons would approve the Finance Bill enacting the Budget.

But, two hours before the vote, Mr Field had the rug pulled from under him, when his fellow leading r ebel - Hyndbu r n MP Greg Pope - decided not to vote with him.

Earlier, Mr Field and Mr Pope had both met Chancellor Alistair Darling to try to secure further help for those who have lost out - and avert a possible gover nment defeat.

Treasury sources said the pair were warned their amendment would have made the collection of all income tax invalid -and, possibly, require all income tax paid since April 6 to be re-paid.

Even before that warning, many would-be rebels were believed to be stopping short of revolt - fearing the damage to an already-weakened Gordon Brown from losing his Budget.

In the chamber, Mr Field attacked ludicrous scare stories that no tax could have been collected after 6pm last night - and even that the currency would collapse.

And he warned that up to 1.3m low-earners - in half a million households - were still losers by more than pounds 1 a week. Many had lost pounds 2-pounds 3 a week from their pay packets.

Mr Field told fellow Labour MPs: When push comes to shove, we are on the side of the poor. The 10p is a denial of all that we have come into public life about - and this is our last chance before the general election to rectify it.

Insisting a loss of pounds 3-a-week was substantial, Mr Field added: If you are on low earnings, it''s a huge sum.

CAPTION(S):

Frank Field