Summary

  • The government is defeated twice in the House of Lords over tax credit cuts

  • Peers vote by 307 to 277 to pause the proposals until an independent assessment is carried out

  • They also back a Labour motion, by 289 votes to 272, calling for full compensation for those affected

  • Ahead of the votes, ministers said they would listen "very carefully" to concerns if opponents back down

  1. Lookahead to Tuesdaypublished at 22:55

    That's all from us following a dramatic evening in the House of Lords. There is sure to be plenty of fallout from this on Tuesday, with Chancellor George Osborne and his Labour counterpart John McDonnell due to come face-to-face in Parliament at Treasury questions. Please join us then.  

  2. Tory MPs had 'very little idea'published at 22:50 Greenwich Mean Time 26 October 2015

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  3. 'Extraordinary step' by Lordspublished at 22:48 Greenwich Mean Time 26 October 2015

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  4. Minister promises to raise issue with EUpublished at 22:12

    Treasury Minister David Gauke told MPs he would raise the issue of VAT on sanitary products with European Commissioners.   

    EU rules block member states from adding new products to existing lists of zero-rated items and can only be changed with agreement from all 28 countries. 

    Quote Message

    Without that agreement, we are not permitted to lower rates below 5%. Nonetheless, as this debate illustrates there is very considerable cross-party support for the UK to abolish VAT on sanitary products.

  5. Tampon tax votepublished at 21:46
    Breaking

    The Commons has voted against a Labour move forcing the government to end the imposition of VAT on female sanitary products. 

    MPs voted 287 to 305 to reject the motion from Labour's Paula Sherriff.

    It required the Chancellor to state how he would negotiate with the EU the ending of the levy within three months.

  6. What's it all about?published at 21:36

    Andy Verity

    Click here to watch BBC economics correspondent Andy Verity explaining what the Lords have been arguing about.

  7. No 10: 'Rapid review' of Lords conventionspublished at 21:35

    No 10 has said it will review arrangements around the House of Lords after the defeat over tax credits. A spokesman said: "The prime minister is determined we will address this constitutional issue. A convention exists and it has been broken. He has asked for a rapid review to see how it can be put back in place." Details will be announced tomorrow. 

  8. All in the detailpublished at 21:06

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  9. Osborne reacts to the votepublished at 20:58

    George Osborne

    Chancellor George Osborne said the vote had "raised constitutional issues that need to be dealt with".

    But he added that on tax credits "I said I would listen to the concerns raised and that is precisely what I will do. I think we can achieve the same goal as reforming these tax credits, securing the money we need to ensure our economy is safe and at the same time helping in the transition to these changes".

    He said he would set out how that could be achieved in next month's Autumn Statement.

  10. 'Blow to Osborne's reputation'published at 20:44

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  11. 'Back to the drawing board'published at 20:36

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  12. Commons 'shouldn't be overruled'published at 20:35

    Conservative MP Michael Ellis tells Sky News, external: "We cannot have a situation where an unelected house overrules a democratically elected one"   

  13. Charity reacts to the votepublished at 20:22

    Rachael Orr from Oxfam said the result "gives the government and MPs the opportunity to think again and act to prevent thousands of working families from falling into poverty". 

  14. MP complains about Lords votespublished at 20:00 Greenwich Mean Time 26 October 2015

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  15. Bad night for the governmentpublished at 19:58 Greenwich Mean Time 26 October 2015

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  16. Labour motion acceptedpublished at 19:56
    Breaking

    Another defeat for the government - Labour's motion, under the name of Baroness Hollis, has been passed by 289 to 272.

    It calls for the changes to be delayed until a three-year package of transitional financial help for those affected has been agreed upon.  

  17. 'Right to delay'published at 19:53 Greenwich Mean Time 26 October 2015

    Conservative MP tweets...

    Ms Allen criticised the reforms in her maiden speech in the House of Commons:

  18. What the vote meanspublished at 19:46

    The motion peers have passed instructs the government to delay the tax credit cuts (which are due to come into force in April) until it has taken account of an independent analysis of who is going to lose out.

    The result means the Bishop of Portsmouth's motion will not be voted on. Labour's motion, put forward by Baroness Hollis, is now being put to the vote. This would delay the reforms until a three-year package of transitional financial help has been agreed upon.

  19. 'New territory'published at 19:45 Greenwich Mean Time 26 October 2015

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  20. Meacher motion passedpublished at 19:40

    The government has been defeated in the Lords over tax credit cuts.

    Baroness Meacher's motion to delay the cuts has been backed by peers by 307 votes to 277.