Labour backbenchers outraged by the British government's proposed cuts to lone parent benefits threatened to vote against the plan yesterday, ahead of a crucial Commons vote this week.
While Labour argued over the cuts the Conservatives increased the pressure on the Paymaster General, Mr Geoffrey Robinson, to respond to reports that he owns off-shore trusts in Bermuda, worth up to £380,000. The government's policy on off-shore trusts imposes severe tax restrictions on British residents.
Several Labour MPs signalled their willingness to defy a three-line whip yesterday and vote against the Social Security Bill, which will cut the benefits for lone parents by up to £10 a week from next April, regardless of the consequences for their political careers.
The leaders of the revolt, Labour MPs Mrs Audrey Wise and Dr Lynne Jones, have tabled an amendment which has its third reading in the Commons on Wednesday, calling on the government to abandon the cuts. However, with Labour MPs reluctant to vote against the government at such an early stage, it is clear that many will abstain.
Dismissing the threat of revolt the Education Minister, Mr Stephen Byers, said the government would press ahead with its "radical agenda". At least 120 Labour MPs have written to the Chancellor, Mr Gordon Brown, urging him to reconsider the cuts.
Reports that four ministerial aides planned to resign over the £395 million cut to benefits were dismissed by two of the aides, Mr Jeff Ennis and Mrs Alice Mahon last night. A Labour MP, Ms Maria Fyfe said she would vote against the Bill - it would mean a lone parent who takes a job and loses it will "end up being on a lowlier benefit than she otherwise would have been".
Details of the government's plan to set aside a £190 billion "war chest" of surplus revenue before the next election were revealed yesterday.
Meanwhile, the shadow trade secretary, Mr John Redwood, accused the paymaster general of "humbug" over his off-shore trusts in Bermuda.