Brown’s stubborn position on tax and detention alarms Ministers

The Labour rebels who are ready to defy Gordon Brown over the extension of detention without charge to 42 days for terrorist suspects are pleading with him to back down. "He is going to lose if he doesn't," said one former senior Labour minister. "Things are so bad that a few might peel off, but the numbers are still enough to defeat the Government."

Brown shows all the signs of digging himself deeper into the hole he is in by pushing ahead with the proposal, inviting another bloody nose. Ministers are becoming alarmed at just how stubborn he is proving, both over the 10p tax issue and 42 days.

Some of his natural allies in the Cabinet made it clear at the political cabinet meeting on Tuesday that they want a solution to the problem of compensation for the losers from the abolition of the lower 10p tax band, and they want it fast. But Gordon's response was: "It has got to be right..." Even his friends are worried that while the Treasury fiddles, the party's popularity burns.

Ideally, they want a Treasury package by May 22, the day of the by-election in Crewe and Nantwich. And if that is not possible, then at least by the report stage of the Finance Bill - probably next month - putting the Budget into effect. Frank Field may have withdrawn his amendment to enforce compensation for the 5.3 million losers, but other Labour MPs could table an amendment to humiliate Brown.

Brown survived a mauling at Prime Minister's Questions yesterday, but was tripped up by Wendy Alexander, leader of the Labour opposition in Scotland and sister of Douglas Alexander, one of Brown's young Cabinet turks. Brown's refusal to accept that Wendy Alexander had called for an immediate referendum on the union with Scotland showed further worrying signs of the Brown psychosis. "He is in complete denial," said one former Cabinet stalwart with a shake of the head.

Next week, Brown will try to drum up support for his draft Queen's Speech, which was agreed by the Cabinet this week. It is going to be targeted at the groups who have deserted Labour in droves - first-time buyers, pensioners, and workers in key posts who cannot find an affordable home. Downing Street are already spinning it as 'Gordon's first Queen's Speech' - that is, one in which Blair has had no hand. But one Cabinet minister said: "It's basically a draw together of everything we have announced. It's not got any real surprises."

If it turns out to be a damp squib, Brown will be pinning his hopes on beating off the Tory challenge in the by-election. Labour is to pour everything into it in an effort to defend Brown's authority. All the big hitters will be in Crewe in the next fortnight, including John Prescott. Voters of Crewe - you have been warned!

THE MOLE: PM UNDER SIEGE

FIRST POSTED MAY 8, 2008