Conciliatory Blair says he is proud of MPs' conduct

Tony Blair offered an olive branch yesterday to the 139 rebel Labour MPs who voted against the Government on Iraq as he sought to bind his party's deep wounds over the imminent war.

Attending his second private meeting of the Parliamentary Labour Party in two days, the Prime Minister braced his MPs for "difficult times ahead". He adopted a conciliatory approach to the MPs who on Tuesday night staged the biggest House of Commons revolt ever seen by members of a governing party, saying that he was "proud" of the way that Labour MPs had conducted themselves.

Government whips had spent several days putting enormous pressure on Labour MPs to back Mr Blair's policy, warning them that the Prime Minister could be forced to resign by a major rebellion. They changed tack yesterday and tried to rebuild bridges with the rebels.

Cabinet ministers joined the campaign to rally all Labour MPs behind British troops now that Parliament has approved military action in Iraq. Peter Hain, the Welsh Secretary, suggested that in return the Government would adopt a more traditional Labour agenda after the war that could include higher taxes for the rich.

He said: "I think we have got to do a lot more to narrow the gap between the rich and the poor and not just lever up the level of incomes of those who are poor. What we have to do is to communicate with and involve our core supporters, party members and our backbench MPs much more effectively in this great enterprise of this Labour Government that aims to completely change our society to make it much more just, much more economically successful and much more democratic."

Mr Hain added: "We have got to make sure that we bind ourselves back together again. We move forward on a basis where we are addressing more clearly traditional but modern objectives as well such as the redistribution of wealth and income." His attempt to calm frayed Labour nerves came as Labour MPs warned that the rebellion over Iraq could extend to other issues such as foundation hospitals and top-up fees at university unless the Prime Minister adopted a more inclusive approach.

David Kidney, who resigned yesterday as parliamentary private secretary to the Environment minister, Michael Meacher, said: "I did not think that we had exhausted the United Nations route and I did not think there was sufficiently wide international support to fight a war."

Calling on the Government to do more to redistribute wealth, he said: "I think we have a really big job to do to build back up party support and I do think we need to reconnect with our supporters – what are their deepest values and how can we satisfy them?"

Mr Kidney became the eighth MP to resign from a government post because they could not support Mr Blair in Tuesday's vote. But Mr Blair is so busy working on preparations for war that he has not had time to fill the vacancies caused by the resignations, including the post of Leader of the Commons formerly held by Robin Cook.

Mr Blair discussed military plans with the team of ministers who will soon become his "War Cabinet". They have been meeting at 8.30am every day this week.

The group includes John Prescott, the Deputy Prime Minister; Gordon Brown, the Chancellor; Jack Straw, the Foreign Secretary; David Blunkett, the Home Secretary; Geoff Hoon, the Defence Secretary; Clare Short, the International Development Secretary, and John Reid, chairman of the Labour Party. Also present were Admiral Sir Michael Boyce, the Chief of the Defence Staff, and the heads of the intelligence agencies. At 4pm yesterday Mr Blair held a further meeting with ministers including Mr Straw, Mr Blunkett and Alistair Darling, the Transport Secretary.

There were signs that MPs who rebelled against the Government were heeding Mr Blair's call to rally behind British troops. John Denham, who resigned as a Home Office minister, said last night: "You cannot half send an army to war. We have taken a decision; we must stand by people."

However, Mr Denham said the international community had "failed" the servicemen and women who would soon be sent into action. He said Iraq could have been disarmed without a war if the US had used its authority to persuade the world about the issue, the timing and the tactics.

Anne Campbell, who resigned as parliamentary aide to the Trade and Industry Secretary Patricia Hewitt, said Mr Blair had tried at yesterday's meeting of Labour MPs to make the dissenters feel part of a team which would work together despite its differences on Iraq.

She said: "There was such a big rebellion. If all those people feel they are outcasts and rebels, then it is going to be a disaster for the party."

Rebels who backed down

Eleven Labour MPs who rebelled over Iraq last month softened their position on Tuesday and helped limit the revolt against war.

They either abstained or backed Tony Blair after days of intense pressure.

One rebel said MPs had been told that Mr Blair would stand down if he lost Tuesday night's vote, while others had been warned that they would be "responsible for bringing down the Government" if the vote was lost.

Some MPs received personal briefings from the Prime Minister. Others met John Reid, the Labour Party chairman.

Rebels who staged last month's 121-strong rebellion against the war were joined by another 29 Labour MPs on Tuesday. Another 14 Labour MPs are thought to have abstained.

Of the 11 Labour "switchers" who rebelled in last month's vote, five ­ Jim Cunningham, Brian Donohoe, Jeff Ennis, Chris Mole and Paul Stinchcombe ­ voted against Tuesday's anti-war amendment. Three MPs ­ Colin Challen, Khalid Mahmood and David Marshall ­ abstained.

The others ­ Paul Farrelly, Andy Reed and Brian White ­ abstained on the rebel amendment but backed the government motion.

Ben Russell