VAT vote 'omission' row: Major is accused of protecting Tory rebels. Patricia Wynn Davies reports

THE PRIME Minister and John Smith clashed yesterday after the Labour leader accused the Government of deliberately suppressing a Budget resolution vote over VAT on domestic fuel to spare the embarrassment of former Tory rebels.

Government sources later claimed that the row - over a resolution on legal changes to implement the Budget, which expressly precludes amendments on VAT - was of Labour's own making, an allegation it strongly denied.

Mr Smith protested during Prime Minister's Questions: 'Why don't you have the honesty to admit that you want to avoid an embarrassing debate and an embarrassing vote on a tax which will remain deeply unpopular with the British people and those Tory MPs who vote for it?'

The Prime Minister's office said later that Mr Major had been 'puzzled' as to why Labour had not tabled an amendment to the resolution, which was standard practice. In a subsequent exchange of letters between Mr Smith and the Prime Minister, Mr Major said Labour had used similar wording for their Budgets of 1977 and 1988. 'I can only assume that you were either badly briefed or were trying to cover up for Labour's failure to table an amendment . . .'

Mr Smith's reply said an amendment was no different to voting against the entire resolution, which Labour intended to do. 'I am driven to the conclusion that you are so embarrassed by public opposition to VAT on fuel that you are seeking to treat the House of Commons like the Conservative Party conference, where you also prevented any debate from taking place.'

Government whips said Labour's omission was a blunder that had sparked a furious row within the party, a claim that Labour also denied strongly.

The resolution was later passed by 326 votes to 291. Gordon Brown, the shadow Chancellor, said afterwards that the argument over the amendment was 'a pure Downing Street trick - an attempt to pull the wool over people's eyes'.