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Government economy woes deepen

Updated on 13 May 2008

By Lucy Manning

Details of the 10p tax compensation package could be overshadowed after photographers outside Downing Street see documents outlining government fears about house price falls.

Housing minister Caroline Flint unwittingly revealed documents that reveal the government fears house prices could fall by up to ten per cent "at best".

The Chancellor Alistair Darling will unveil this afternoon how he'll compensate people who'll lose out by the scrapping of the 10 p income tax band.

Its abolition sparked a revolt from union leaders and backbench MPs.

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