A recap of a day in which the Conservatives survived their first Commons vote as a minority government:

• Ministers have signalled that the limit on public sector salary rises could be reviewed, as a Labour attempt to scrap the 1% cap was defeated in Parliament
• The DUP backed the Conservatives to defeat the amendment by 323 votes to 309, with other opposition parties backing Labour
• The DUP's deal to support the Conservatives on major votes - with £1bn of spending for Northern Ireland - led an SNP MP to joke that the DUP's 10 MPs were each "worth more than Ronaldo"
• During the first PMQs clash since the election, Jeremy Corbyn linked the Grenfell Tower disaster to spending cuts but Theresa May said the issue had "developed over decades" under successive governments
• The Commons debates took place as the British Social Attitudes survey indicated nearly half of Britons think the government should raise taxes and increase spending
• Talks on resolving Northern Ireland's political deadlock have continued, with Sinn Féin calling on the British and Irish governments to intervene
• Former education secretary Nicky Morgan says Theresa May should consider standing down by autumn 2018 to allow a successor to sell the Brexit deal
• A European commissioner has warned Brexit will "will blow a hole" in the EU's budget

Sinn Féin calls on the UK and Irish governments to intervene as power-sharing talks enter final hours.

"Public sector pay U-turn underscores growing tensions in Downing Street," says the Financial Times.

House of Lords
Parliament

Former ambassador and crossbencher Lord Jay of Ewelme says that the scenario in which "we walk away and leave without an agreement may have rhetorical value but doesn't show great confidence in negotiators to secure a deal in our interests".

"We will still need to trade and co-operate on security and defence," he points out, arguing we need to achieve the "closest frictionless relationship possible".

House of Lords
Parliament

Image source, HoL

Conservative former minister Lord Robathan says although he's "not a fan of referendums, the people have spoken and we must listen".

He suggests that other speakers such as Lord Mandelson are "ignoring that we had a referendum" and "lacking confidence".

"Most of the rest of the world isn't in the single market - and I'll name two big ones, the USA and Hong Kong - they seem to be doing pretty well."

The Huffington Post

Image source, Heidi Allen

Labour had appealed to Conservative MPs to back its amendment opposing the public sector pay cap - but one of them has told the Huffington Post, external why she could not vote for it.

Speaking to HuffPost UK after the vote, Tory MP Heidi Allen - who would like to see the cap lifted - said she was unable to back Labour’s amendment as it was "too partisan".

She also queried introducing a blanket pay rise for all public sector workers.

“'Public services includes the very highest paid chief executives, managers, Whitehall chiefs too' [she said].

“'I cannot support a blanket pay rise to all of those.

“'We need to focus on those public sector workers such as nurses, healthcare assistants and all those on the front line.'”

Liberal Democrat leader Tim Farron, whose MPs backed Labour's amendment, has attacked the DUP for voting with the Conservatives.

"This evening the DUP have stood alongside their Tory paymasters cheering at the fact that they have withheld more pay for our police, our firefighters, our nurses and our teachers," he said.

"Shame on them."

Ministers hint the 1% limit could be lifted as a Labour move to scrap it is defeated in Parliament.

Nicholas Watt
Political editor, BBC Newsnight

Former education secretary Nicky Morgan says Theresa May should consider standing down by autumn 2018 to allow a successor to sell the Brexit deal.

Mrs Morgan was sacked by the prime minister last year.

Shortly after the election, she said Mrs May should not lead the Tories into the next general election.

Mrs Morgan now says the Conservative Party "must not miss the opportunity" to think about its next leader once the Brexit deal is finalised.

Read more.

Image source, bb

Responding to the vote on the Queen's Speech, which saw MPs reject Labour's amendment calling for the 1% public sector pay cap to be lifted, Jeremy Corbyn said: "Tonight, the Conservatives had an opportunity to put their money where their mouth is, by ending cuts to our police and fire service and lifting the public sector pay cap.

"Although government ministers said they had learned the lessons of the general election and were listening to voters, it is clear that nothing has changed.

"They had the perfect opportunity to walk the walk, but instead they marched through the lobby to show Tory austerity is business as usual.

"While the money is there when the Conservatives need it to keep themselves in office, the rest of the country now face more devastating cuts to our emergency and other vital services."

House of Lords
Parliament

The crossbencher and architect of Article 50, author Lord Kerr of Kinlochard, earlier criticised the government's whole approach to Brexit negotiations.

He said the government were "alienating" and "insulting" other member states, and: "That is resented across the Channel. I can't remember when this country was so isolated and impotent in Brussels as it is now."

If the UK were to put forward a positive plan "that would change the atmosphere of the negotiation", Lord Kerr advised.

House of Lords
Parliament

A few lines from the Queen's Speech debate in the Lords a little earlier, where Brexit rather than public sector pay dominates.

Former Lib Dem leader Lord Campbell of Pittenweem complained that Theresa May "missed a golden opportunity by not publishing details" of arrangements for leaving the EU, particularly relating to EU nationals' rights.

He noted that Philip Hammond, who he said has "recently been released from the bondage imposed on him by Theresa May's former chiefs of staff", said people did not vote to become poorer but "many of them are already".

He said he cannot work to further a cause which he believes to be "profoundly against our interests".

But Conservative peer and former minister Lord Jopling said it is important we don't descend into fighting the referendum over and over again, to approving noises from peers behind him.

He argued for letting the "determined band of Brexiteers" get on with steering the UK through Brexit.

BBC News Channel

Now on the BBC News channel, Andrew Gwynne says Conservative MPs "talk the talk" about ending the public sector pay cap but didn't back it in a Commons vote.

The Labour frontbencher says people supported his party in the general election because they saw "we can have a different approach".

Conservative MP John Penrose says that Labour "had a surge at the end of the campaign but it didn't win".

Workers, he adds, are also taxpayers and it is important to get the maximum value for money - although he also says the Tories will listen to voters, and all sides of the House want to spend more on public services.

Turning to the narrow result in the Commons a short time ago, Mr Penrose says "a majority of 14 is workable but it's not huge" and the government needs to work within the constraints of a hung Parliament.