The Government's Charter for Budget Responsibility has passed the Commons 320 to 258, majority 62, following days of bitter rows in Labour's ranks over whether to oppose the plan.
A total of 20 Labour MPs abstained from the vote.
Shadow Chancellor John McDonnell said it was "best to be honest" about changing his mind over the government's fiscal charter.
Speaking after the vote, which saw the Charter for Budget Responsibility passed by a majority of 62, he said that Conservatives showed "derision" and "arrogance" during the debate
McDonnell admitted during the debates that his u-turn over the policy, which had sparked disunity within his party, had been "embarrassing".
Some Corbynistas may be cross that 20 Labour MPs abstained in the fiscal charter vote, but is it really worth the abuse and party disunity?
MPs are set to vote on the Conservative's economic plan which caused clashes within Labour after a u-turn by the shadow Chancellor.
It comes after shadow chancellor John McDonnell made a surprise U-turn on the Tory budget vote which is due later today.