MPs back George Osborne's fiscal charter by a majority of 62 following a heated Commons debate
As many as 20 Labour MPs defy the party leadership by abstaining rather than opposing the plans
Speaking in the Commons, shadow chancellor John McDonnell admits his u-turn on the issue was "embarrassing"
David Cameron faces Jeremy Corbyn for second time at Prime Minister's Questions
The two clash over tax credits and affordable housing
The shadow foreign secretary tells the BBC the charter for budget responsibility is a political stunt and the UK needs to invest in skills to get economy growing. He said George Osborne was playing politics with people's jobs and the future of the economy and John McDonnell would set out a "strong" argument this afternoon.
The Daily Politics
Treasury Secretary David Gauke is holding the line on tax credit cuts - due to come into effect next April.
The government has faced calls from across the political spectrum to phase them in.
MPs voted for the cuts, that were outlined in the Budget, says Mr Gauke. He admits that "there are some people who will be worse off".
But says other factors such as more free childcare and the living wage will make up for that, he adds.
Speaking to the BBC Gloria de Piero says people are allowed to change their mind and says George Osborne should be ashamed about cutting people's tax credits.
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Laura Kuenssberg
BBC political editor
Some MPs will be missing tonight's Commons vote on the fiscal charter.
One just told me they are "washing their hair".
The Daily Politics
Labour MPs were promised a debate on big decisions - so why did John McDonnell decide on his own to do a U-turn on the fiscal charter, asks Andrew Neil.
Shadow Transport Secretary Lillian Greenwood says he didn't speak to her before announcing the decision but he may have spoken to others.
It's a "silly stunt", she says of the fiscal charter, repeating the line we have been hearing all morning from Labour MPs.
The Daily Politics
Why did Britain back Saudi Arabia to be the head of the UN Human Rights Commission?, asks Andrew Neil, adding that it looks like a "bad joke".
David Gauke says he is not sure what led to that decision.
The Daily Politics
Treasury Secretary David Gauke is put on the spot over Micheal Gove's decision to pull out of a prisons contract with Saudi Arabia.
Mr Gauke says there is a "fine judgement to be made" about whether to go ahead with such contracts.
Jeremy Corbyn says he welcomes government change of heart
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MPs behaved themselves last time
The build-up to Jeremy Corbyn's second-ever appearance at Prime Minister's Questions starts here.
How many of his questions will be crowd-sourced this time?
Will David Cameron break the fragile "kinder" mood that prevailed last time and go for the jugular over Labour's apparent state of confusion over whether to back Osborne's fiscal charter? Will he ask for a show of hands from Labour MPs?
Just half an hour to go.
Here is what happened last time.
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Speaking on BBC News Tim Farron said the Liberal Democrats will oppose the charter, he said although the focus was on Labour's "chaos" it was important to note that:
Quote MessageThis is George Osborne guilty of calculated economic incompetence"
The Daily Politics
Andrew Neil and Jo Coburn will be covering the second Cameron-Corbyn PMQs with Financial Secretary to the Treasury David Gauke and shadow transport secretary Lillian Greenwood from 11:30 to 13:00.
Ahead of PMQs, they will also be looking at the fiscal charter for budget responsibility, and the government cancelling a £5.9m contract to provide a training programme for prisons in Saudi Arabia.
Later on, the mood should lighten as the team find out if Lib Dem blogger Stephen Tall (above right) really does carry out his pledge to run naked along Whitehall after a brave prediction about the Lib Dem tally of MPs after the 2015 general election.
Former newspaper editor Kelvin MacKenzie (below) later pledged a £5,000 charity donation as a push for him to get on with it.
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BBC News Channel
Lib Dem leader Tim Farron tells the BBC's Norman Smith that MPs should not be above the law but the fundamental issue is the protection of private information. He expressed concern the government plans to bring in a "snooper's charter".
Image source, OtherMore "trap"/"no trap" news.
A Labour member of the Treasury select committee has defended John McDonnell’s position on the fiscal charter as “quite consistent”.
Helen Goodman denied the shadow chancellor was falling into the Conservative trap he had pledged to avoid, adding:
Quote MessageThe people who are falling into the trap are the people who are thinking of voting with George Osborne.”
She said Mr McDonnell’s position had always been that governments should be able to borrow to invest and that this was the position Labour had gone into the election on.
Quote MessageThat was the position of the previous Labour governments. Indeed, it was the position of previous Tory governments. Everybody wants to get the debt down. George Osborne has failed spectacularly on that – the debt has gone up by £200bn.”
Dominic Casciani
Home Affairs Correspondent
Green MP Caroline Lucas and House of Lords colleague Baroness Jenny Jones argued GCHQ was acting outside the long-standing Wilson doctrine through bulk collecting communications data from the internet, including information from MPs.
But the IPT, which rarely sits and rules in public, said the Wilson Doctrine only applied to the specific targeting of MPs. It said Parliamentarians had the same legal protections against unjustified intrusion as anyone else.
The landmark challenge largely focused on the so-called Tempora programme, the harvesting of communication data from the internet first revealed by American security contractor Edward Snowden.
In its ruling, the IPT does not mention Tempora by name but says that "incidental" collection of MPs' data would not constitute a breach of the Wilson Doctrine.
UKIP MEP and employment spokesman Jane Collins has been casting her eye over the latest employment figures, which the government are trumpeting as evidence their economic policies are working.
"It's that north-south divide again! The unemployment rate may have fallen overall but as we've seen in Redcar with the closure of the SSI plant, the damaging impact of EU regulations making manufacturing and heavy industry uncompetitive is losing jobs in the North," says Ms Collins.
Quote MessageWe may hear talk of a 'Northern Powerhouse' but all we've seen from this government is the kind of hot air the environmentalists want to stop."
There is a pattern developing here. Labour shadow cabinet members dismiss George Osborne's fiscal charter as a gimmick designed to trap the Labour Party and Tory ministers deny it.
Matthew Hancock is the latest minister to add his voice to the "no gimmick" side of the debate, telling the BBC the idea of having a surplus is critical to running the country well - critical for every family that the government lives within its means.
Asked if new Labour leader Jeremy Corbyn and shadow chancellor John McDonnell had handled the response to the government's fiscal charter badly, shadow chancellor Andy Burnham said:
Quote MessageIt's easy to say that. We've come through a leadership election where everyone's taken different positions, and it's messy and the party needs time to regroup. And that's what's happening and obviously a new leadership team needs time to find its feet and all the rest of it. It's the position the party's in at the moment but these things will bed down, they are bedding down, we've got to the right position and we're going to take a clear stand today against what George Osborne is doing. That's the right thing to do and we'll move on from there."
Shadow Home Secretary Andy Burnham says the party now has the right policy and will now vote to oppose what George Osborne's fiscal responsibility charter.
Quote MessageObviously, it's been a complicated process, not ideal - let's be clear and honest about that. But this is the right position. And I think it's the position Jeremy Corbyn was outlining in his leadership bid and it was the position that I was outlining. We shouldn't go along with these traps and stunts, this is what they're doing, I think the public can see through that."