Party members defied Nick Clegg and his ministerial colleagues by backing a 'rebel' amendment on the planned NHS changes.
In a close vote the party has now instructed Lib Dem peers not to back the Bill tomorrow in the Lords. Party President and Cumbrian MP Tim Farron was frank in his assessment.
More top news
As well as paying back staff the money owed, employers on the list have been fined a record £1.9 million by the government.
A man has been left with head and arm injuries after being hit by a horse box in Whitby.
More than 650 teenagers will graduate as junior soldiers from Harrogate's Army Foundation College today.