George Osborne makes a robust defence of his new spending rules, saying they will ensure the UK "lives within its means" and equip the country to withstand future economic shocks. He relentlessly attacks Labour, accusing shadow chancellor John McDonnell of a "spectacular u-turn" and accusing the opposition of being in "complete confusion and incredibility" over its economic policy. He urges Labour MPs to vote in favour of "budgetary responsibility and economic sanity" and abandon the "reckless course" that their party is embarked upon.

MPs have begun debating George Osborne's Charter for Budget Responisibility, more commonly known as the fiscal charter. Labour leader Jeremy Corbyn is in the crowded chamber sitting alongside his shadow chancellor John McDonnell. 

Image source, PA

The government has suffered two defeats in the House of Lords this evening over its plans to double the free childcare available to parents of three and four-year-olds in England. Peers voted by 222 to 209 to require a full funding analysis to be carried out before the policy comes into force. Peers also backed a Liberal Democrat call by 195 votes to 169 that access to free childcare should be available to parents outside Monday to Friday, 9am to 5pm, and during school holidays. Both defeats could be overturned when MPs get to scrutinise the Childcare Bill. 

We've still got the big Commons debate on the government's fiscal charter - with a showdown between George Osborne and John McDonnell - to come...

But here is a rundown of the main political stories of the day so far:

• The day has been dominated by Jeremy Corbyn's second Prime Minister's Questions clash with David Cameron - with the Labour leader once again crowd sourcing his questions and putting the PM under pressure over cuts to tax credits
• MPs learned that they have no special protection from having their phones and emails monitored by the UK's security services after a tribunal ruled the so-called Wilson doctrine, which has protected them for nearly 50 years, has no legal force
• European Commission president Jean Claude Juncker sparked a huge debate on Twitter after appearing to say Britain didn't need the EU - his words are not clear. What was clear was Mr Juncker's belief that the UK and and EU negotiators are have not made huge progress yet
• Shadow chancellor John McDonnell dismissed calls by George Osborne and David Cameron for moderate Labour MPs to back the government in tonight's Commons vote to force future government's to balance the books, calling it a stunt. Up to 30 Labour MPs could abstain.

House of Lords
Parliament

The government has suffered a defeat in the House of Lords as Labour and the Lib Dems combined to pass an amendment by 222 votes to 209.

Unless the Commons overturns the decision later, the implementation of the bill's provisions extending free childcare in England will be delayed pending a report on how it would be funded.

For more details of the Lords debate visit Westminster Live

Eleanor Garnier
Political Correspondent

The Prime Minister's Official Spokeswoman has been asked about Jeremy Corbyn's plans to raise human rights concerns when the Chinese President visits the UK next week.

The spokeswoman said: "The prime minister is focused on the discussions he wants to have with the Chinese president during his visit and how to continue to advance the UK's interests in terms of our relationship with China."

"That's what he is focused on," she said, adding that "it's down to others how they approach issues."

Asked whether the PM would raise concerns over human rights with the Chinese president the spokeswoman said he will discuss a "wide range of issues" and "there are no issues off the table".

The Smith Commission did not recommend that abortion laws be devolved to Holyrood, points out the BBC's Tim Reid, just that it was something the parties “were strongly of the view to recommend” and should be further considered. Here's what it said:

Eleanor Garnier
Political Correspondent

The Prime Minister's Official Spokeswoman has said that abortion law was an "issue that was recommended for devolution by the Smith Commission".

She said that "we're willing to devolve that power" and "decisions on what they (ie Holyrood) do with that power is up to them."

Earlier in the Commons, Scottish Secretary David Mundell said there was no "convincing constitutional reason" for why the law should not be devolved to Holyrood in the Scotland Bill, which is currently being debated by the UK Parliament.

In an interview for the New Statesman, external shadow defence secretary Maria Eagle says she still favours renewing Britain's Trident nuclear weapons -  but she says there should be a debate within the party.  

"I think at a time when you've got austerity and big cuts in public expenditure it's reasonable for people to ask whether or not the money that we're spending on defence generally and on successor submarine, in particular, is properly spent," says Ms Eagle. 

Breast Cancer Care are urging David Cameron to honour his commitment to collect consistent data on secondary incurable breast cancer after Jeremy Corbyn raised the matter at Prime Minister's Questions today.  

Danni Manzi, Head of Policy & Campaigns at Breast Cancer Care said:

Former Conservative chancellor Lord Lawson, speaking in the House of Lords, has criticised Lancashire County Council for its decision to block fracking in the county.  

Lord Lawson described the decision as "deplorable" and curbed its ability to exploit its "best possible prospect".

Vote Leave - the business-backed group campaigning for Britain's exit from the EU - is quick to seize on Mr Juncker's apparent endorsement of one of its messages (if you take the view that he said the UK didn't need the EU - his spokesman says he actually said the UK does need the EU):

The BBC's Chris Morris reports from Brussels, a spokesman for the President says Mr Juncker said  "do" but it is being misheard and therefore misreported.

 The spokesman said Mr Juncker said: