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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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Cheers in Commons as tax credit defeat is announced

There were cheers in the House of Commons tonight as proceedings were interrupted to announce peers had voted against the government on tax credit cuts.

The historic moment is the first time in 100 years the House of Lords has defied the elected house.

David Cameron said the move has created a "constitutional issue" which must be resolved.

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