JEREMY CORBYN was plunged into fresh chaos yesterday as 20 Labour MPs defied him over Budget Day tax cuts.

Yvette Cooper, Lucy Powell and Lisa Nandy were among backbenchers who defied the Labour leader to vote against the Chancellor’s tax breaks for 32 million Brits.

Philip Hammond raised the tax allowance for low-earners – but also those on the higher tax rate.

Ms Nandy – seen as a future leadership contender – had branded the Chancellor’s decision to reward the better off “abhorrent”. Ms Powell said she wouldn’t have been able to look her constituents in Manchester in the eye. She said: “It’s the first time I’ve ever ‘rebelled’.

“I don’t do it lightly.”

But Labour Shadow Chancellor John McDonnell said the tax breaks “injected” demand into the economy and would help police and teachers in the “middle income” bracket.

Lib Dem leader Vince Cable and 8 fellow MPs also voted against the breaks as well as Green Party leader Caroline Lucas. The Lib Dems pushed the policy of raising the tax allowance for low earners in the Coalition.

Speaking last night Mr Cable said: “Just voted with over 20 principled Labour MPs against Tory tax cuts for well off instead of more for Universal Credit.

“Shockingly Labour whips in our lobbies trying to stop them in support of official Labour line not to oppose.”