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Government orders Lords review after tax credit defeat

A "rapid review" into the structure of the House of Lords has been ordered by the government following a vote in the House which defeated planned tax credit cuts.

The historic stance from the non-elected chamber has provoked a power-struggle in the Palace of Westminster that could cause changes to the UK constitution.

ITV News Political Correspondent Emily Morgan explains:

Chancellor defiant over Lords tax credit defeat

George Osborne remains adamant that his proposals for tax credit reform will go ahead, despite his initial plans being defeated by a vote in the House of Lords yesterday.

ITV News Deputy Political Editor Chris Ship has more:

Power struggle between House of Commons and Lords

A power struggle between the House of Commons and the House of Lords is underway after a motion to delay £4.4 billion of tax credit cuts while an impact assessment is carried out was voted in on Monday.

Following the vote Downing Street has confirmed a rapid review of the House of Lords will take place and Chancellor George Osborne has insisted he will press ahead with changes to reduce the welfare bill despite opposition.

Review of Lords confirmed in wake of tax credit defeat

Downing Street has confirmed a rapid review of the House of Lords will take place in the wake of the Government's tax credits defeat.

A statement from Downing Street said:

The Government is setting up a review to examine how to protect the ability of elected Governments to secure their business in Parliament.

The review would consider in particular how to secure the decisive role of the elected House of Commons in relation to (i) its primacy on financial matters; and (ii) secondary legislation.

The review will be led by Lord Strathclyde, supported by a small panel of experts.

– Downing Street

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Bercow: 'No procedural impropriety' in House of Lords vote

Bercow has insisted that the House of Lords were acting within their rights when they voted on tax credit motion Credit: PA Wire

Commons Speaker John Bercow has insisted that the House of Lords were acting within their rights when they voted for a motion to delay £4.4 billion of tax credit cuts while an impact assessment is carried out.

Speaking during Treasury questions he said:

Nothing disorderly has occurred, there has been no procedural impropriety - that would not have been allowed.

Whether people like what happened last night on the substance of the issue or in terms of their views on constitutionality is a matter for each and every one of them.

In terms of where matters rest... this is now a matter for the Government to take forward as it thinks fit.

– John Bercow

The Speaker's comments came following accusations by leader of House of Commons Chris Grayling that it "cannot be right" for the unelected Lords to stand in the way of the changes.

'Worst thing you could do for families is have unlimited welfare'

Chancellor George Osborne has defended his plans to push on with plans to reform tax credits despite opposition, saying the "worst thing you could do for families is have unlimited welfare".

Osborne whose welfare reform plans were defeated in the House of Lords on Monday night said the bedrock of economic security was a "country that lives within its means".

He said: "The worst thing you could do for families is have unlimited welfare because we know where that leads, that leads to job losses and no economic security for families at all."

Osborne vows to press ahead with tax credit reforms

George Osborne faced questions in the Commons on Tuesday.

George Osborne has vowed to push on with plans to reform tax credits despite Monday night's defeat in the House of Lords.

The Chancellor told the House of Commons he would unveil his new plan in next month's Autumn Statement.

He also criticised the Lords for voting down the plans, saying it raised "constitutional issues".

"We will continue to reform tax credits and save the money needed so that Britain lives within its means, while at the same time lessening the impact on families during the transition," Mr Osborne told MPs.

There were further calls for the plans to be scrapped during Treasury questions, with Labour MP Wes Streeting saying the Chancellor was "manufacturing a phoney constitutional crisis" rather than going "back to the drawing board".

Shadow Chancellor John McDonnell said Labour would not attack the Government if the plans were reversed "fairly", calling for Mr Osborne to "listen to reason".

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