Return To Backbenches
On the backbenches, Byers kept up pressure for the Labour Party to keep to the centre ground. In August 2006, he suggested that Labour heir-apparent, Gordon Brown, should discard the inheritance tax in order to prove his "New Labour" credentials to Middle England. This suggestion was widely criticised by many MPs, who claimed that the publicity surrounding Byers' plan would "frighten constituents in the high-priced south into believing they would have to pay death duties, when most won't".
On 14 November 2009, he announced that he would be stepping down from Parliament at the 2010 general election.
Following the criticism of the Prime Minister over the budget of 2007, which dismissed the ten percent starting rate of income tax as well as that of 2008, which included a planned two percent rise in fuel duties, Byers accused Gordon Brown of manipulating the tax system for "tactical advantage" and urged an "immediate halt" to proposals to increase taxes on motorists. He also condemned the government's proposed inheritance tax reforms that had been launched in response to Opposition proposals to reform the tax. He went on to urge the government to carry out a fundamental rethinking of tax policy.
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