CABINET Minister Jack Straw has admitted that the row over the abolition of the 10p tax band has given the government a problem'.

But he has dismissed reports that he could take over from a beleagured Gordon Brown as 'idle speculation.' Reports say a Labour rebellion against Prime Minister Gordon Brown, particularly over controversial tax changes, is gathering pace.

And some commentators have claimed Mr Straw could take over if Mr Brown suffers a defeat in a debate on the matter this week.

The Blackburn MP and Justice Minster said: "Gordon Brown was elected overwhelmingly as leader.

"There is no vacancy, and there will be no vacancy."

Asked if he would take the job if offered, he added: "I'm not going to go into that."

MPs returned to parliament yesterday after a two-week break as Labour rebels called for compensation for people hit by the abolition of the 10p tax band, which will leave some low-earners worse off because they will be taxed at 20 per cent instead of 10 per cent.

The government insists that millions of people are better off because the main rate of tax has fallen from 22 per cent.

But Mr Straw said he had been contacted by constituents who were losing out, which he admitted was a "problem".

He added: "I have had some people raise it as an issue in the past and at constituency meetings.

"The Chancellor obviously understands there is a problem, and he hopes to be able to deal with that - but not by unravelling the budget.

"The government is thrown into difficulty from time to time - that's the price you pay for being in government. But there have been far fewer difficulties in the past 11 years because of the success of the way Gordon Brown and Tony Blair ran the economy."

Earlier this month Hyndburn Labour MP Greg Pope tabled an early day motion, which was later withdrawn, calling for the 10 per cent band to be reinstated.

Now Labour rebel Frank Field has tabled an amendment to the finance bill currently passing through parliament calling for compensation for people left worse off, notably single people earning less than £18,000.

Darwen and Rossendale MP Janet Anderson and Mr Pope have already signed the amendment.

Mrs Anderson said: "I am very concerned about the number of people that are going to lose out."

Chancellor Alistair Darling has said he would use future budgets to help people hit by the changes.

But Pendle Labour MP Gordon Prentice, who spoke out against the budget two weeks ago, said: "It's not good enough to say we will return to it - we need a remedy now."

Chorley MP Lindsay Hoyle said he was concerned about people losing out, but would not confirm if he would vote for Mr Field's amendment until MPs had debated it this week.