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Labour has announced a surprise u-turn on its plans to back George Osborne's budget rules.

Shadow Chancellor John McDonnell said the party would support the Charter for Budget Responsibility that ties governments to balance the books by 2018.

But Mr McDonnell is expected to tell MPs at a meeting of the Parliamentary Labour Party tonight that they will now vote against the measure on Wednesday.

It follows fears the party could be outflanked by the SNP if they signed up to Osborne's austerity measures.

In interview with the Daily Record ahead of the Labour Party Conference two weeks' ago Mr McDonnell proclaimed: “We are not deficit deniers."

"I’m going to demonstrate that we will tackle the deficit in a way that doesn’t involve cuts to services, particularly to the poorest, and doesn’t have to be borne on the back of the middle and low income earners," he said.

(Image: Getty)

Asked if he would keep to the Charter of Budget responsibility, he replied: “Yes we will.”

He added: “What we have said is that we will ensure that we live within our means. If the Charter ensures that we live within our means, that is what will adopt.”

The charter ties the government to a goal of balancing day-to-day spending - the structural current deficit - by 2017-18 and to ensure that debt is falling as a percentage of Gross Domestic Product (GDP) by 2016-17.

A Labour source told the Mirror: "McDonnell wants a final position agreed at the PLP tonight.

"But my understanding is we won't be supporting it (the Charter) any longer, unless the PLP overturns it.

"We will either vote against or abstain. The Charter now includes public sector investment not just day to day spending. His argument is it makes us a hostage to fortune given the coming economic challenges."

Mr McDonnell and leader Jeremy Corbyn are now facing a stormy meeting with their MPs as many had welcomed the original decision to back the Charter.

They also face questions over their stance on immigration and air strikes against Syria.

Diane Abbott today hit back after being dubbed an “internet troll” by her fellow MPs.

(Image: Mirrorpix)

The shadow International Development secretary said it was “surprising” that dozens of her colleagues may back David Cameron 's plan to bomb Syria without UN approval.

“Last month Labour party conference agreed the terms on which it would support military action. Those terms included authorisation from the UN,” Ms Abbot raged.

The left-winger sparked the bitter row at the weekend by attacking colleagues on Twitter who support military action.

John Woodcock hit back: “You're shadow int development sec, not an internet troll.”

Labour moderates privately suspect Ms Abbot - a key ally of Jeremy Corbyn - of backing a campaign to have them de-selected.