Lord Strathclyde to chair review of Commons-Lords powers after tax credits vote

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.

A Number 10 spokesman 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."