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Review of Lords confirmed in wake of tax credit defeat

A review into how MPs can be given the "decisive role" over key financial decisions has been set up following the Government's humiliating Lords defeat over plans to cut tax credits.

Chancellor George Osborne has insisted he will press ahead with changes to reduce the welfare bill, despite the double defeat in the House of Lords.

David Cameron ordered a "rapid review" of the relationship between the two Houses of Parliament which will be chaired by former Lords leader Lord Strathclyde.

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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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