• Government passes fiscal charter by 320 votes to 258

• Shadow chancellor John McDonnell u-turned to oppose the charter

• Mr McDonnell faces rebellion and admits u-turn 'confused' MPs

• George Osborne says the measure commits the government to "fixing the roof while the sun is shining"

Jeremy Corbyn backs down

Jeremy Corbyn allowed members of his ministerial team to defy him by avoiding a crucial Commons vote just hours after threatening them with the sack if they rebelled.

In a sign of Mr Corbyn's lack of authority it emerged that senior Labour MPs had been given permission to be "off the whip" and abstain from voting against Conservative proposals to run a budget surplus.

The Telegraph understands that shadow ministers who indicated that they were planning to rebel were initially threatened with the sack only for Mr Corbyn's position to soften when he realised the potential scale of the rebellion.

The Conservatives won comfortably by 320 votes to 258. A total of 37 Labour MPs failed to vote, including 16 whose absence was "authorised".

They included shadow ministers - Kevan Jones, the shadow defence minister, Vernon Coaker, the shadow Northern Ireland Secretary, Lucy Powell, the shadow education secretary, and Sarah Champion, the shadow minister for preventing abuse who was ill.

One of the shadow ministers was given permission to miss the vote just hours after being threatened with the sack for vowing to abstain.

The minister said: "It's f*****g chaos. I said I wasn't voting today and they said I would get sacked. This afternoon they said will you just stay away. I said fair enough. They then told me I've got authorised absence. I'm going for dinner tonight instead."

A total of 21 MPs directly defied Mr Corbyn, including former ministers Tristram Hunt, Liz Kendall and Chris Leslie.

Ed Miliband, the former Labour leader, Yvette Cooper, the former shadow home secretary and Chuka Umunna, the former shadow business secretary, were among those who backed Mr Corbyn.

Sources close to Mr Corbyn confirmed that shadow cabinet ministers and MPs had been given permission to abstain from voting on the deficit proposals, but insisted it was because they were on "on other business".

The decision to allow MPs to abstain came after a major policy reversal by Mr Corbyn. John McDonnell admitted the reversal had been "embarrassing", adding that he had been "trying to out Osborne Osborne".

The vote came as Mr Corbyn suffered yet more indecision.

He was said to be undecided over whether or not to wear White Tie to a state banquet next week, which will be hosted by the Queen in honour of the Chinese President.

The Labour leader has accepted an invitation to Tuesday's dinner at Buckingham Palace in honour of President Xi Jinping of China but his wife, Laura Alvarez, has declined to attend.

Mr Corbyn is expected to confront the Chinese President over his human rights record.

The party also reversed its position of blanket opposition to air strikes against Isil in Syria by suggesting it could support military action without UN support.

Fiscal charter debate: As it happened

9.32

It seems that Ed Miliband backed Jeremy Corbyn and voted against the Fiscal Charter.

I gather Yvette Cooper, Ed Miliband and Mary Creagh all voted with McDonnell and against the Tory Charter — Jack Blanchard (@Jack_Blanchard_) October 14, 2015

21.26

Details of Labour MPs who have abstained are starting to trickle through.

Unsurprisingly, they include several former shadow cabinet ministers who are unhappy with Mr Corbyn's leadership.

Hearing Tristram Hunt, Chris Leslie and Liz Kendall all abstained — Jack Blanchard (@Jack_Blanchard_) October 14, 2015

21.22

Labour whip's office is now saying that 20 Labour MPs have rebelled.

UPDATE: Looks like 20 Labour MPs abstained on tonight's vote on the Charter. — Labour Whips (@labourwhips) October 14, 2015

21.10

Labour's whips office has tweeted:

On charter vote it looks like less than expected, with under 30 abstentions. Will get exact numbers within the hour and confirm. — Labour Whips (@labourwhips) October 14, 2015

21.05

We've got our calculators out to try and figure out how many Labour MPs abstained from the vote this evening.

Updates to follow.

21.00

Ayes 320, Noes 258 - the government easily wins the vote with a majority of 62.

20.45

John Bercow, the Speaker, has called a division. MPs will now vote on whether to back the fiscal charter or not and we should have a result in around 10-15 minutes.

Conservative MPs will be voting in favour, Labour has decided to vote against after John McDonnell changed his mind on how the party should vote.

The government is expected to win.

We now have to wait and see how many Labour MPs rebel against Jeremy Corbyn and abstain or vote with the government to support the fiscal charter.

At least one shadow cabinet member is likely to rebel, the Telegraph understands.

20.30

Our very own Michael Deacon counted the number of times John McDonnell said his u-turn on the fiscal charter was "embarrassing" ...

The new, more honest politics: in the Commons John McDonnell described his own U-turn as "embarrassing" five times. ("Yes, of course it is") — Michael Deacon (@MichaelPDeacon) October 14, 2015

20.25

Labour's John Mann stands up to speak. He says the Chancellor lives in a "little gated community" and has a "problem neighbour" next door.

He is making the point that George Osborne doesn't understand the impact of his policy on families around the country.

It is a "political gimmick" Mr Mann warns - adding the Chancellor has "no support in business or the City" for his plan.

20.20

There are so many MPs who want to speak in the debate that the Speaker has imposed a four-minute limit.

20.16

The SNP's Stuart Hosie is currently giving his response to the proposals.

He warns that George Osborne's plans are "the economics of the madhouse" and will "punish the poor".

He adds that "You can't cut your way to growth" and claims the government is being "irrational" on the economy.

20.12

It's worth remembering that most of the MPs staffing Labour's whips office are from the 2015 intake and will still be finding their feet in parliament.

They're responsible for making sure all of Jeremy Corbyn's MPs walk through the right lobby tonight and don't rebel to back the government.

Typically, whips do this by bargaining and using their influence with members, which is tricky if you've only been in the House for a few months.

An insight into how that must feel right about now ...

I am on Whip Duty Tonight for the Tory Cuts Charter Debate, it's Certainly Lively.... — Angela Rayner MP (@AngelaRayner) October 14, 2015

20.05

Interestingly Mr McDonnell tells the House that Labour is consulting widely on economic proposals, yet Sebastian Payne at the Spectator reported earlier that Labour's group of economic experts are yet to meet.

More here:

John McDonnell will meet his seven economic advisers…soon http://t.co/I9XfRBYil1 pic.twitter.com/ImYbkC2qsM — Sebastian Payne (@SebastianEPayne) October 14, 2015

20.02

An interesting insight from Sky's political editor:

Jeremy Corbyn leans over to John Mcdonnell and tells him to be nice... Osborne is creasing up with laughter nodding 1955 — Faisal Islam (@faisalislam) October 14, 2015

20.00

Labour’s Jonathan Reynolds says this fiscal charter is “moronic’ - prompting Mr McDonnell to say: "I couldn't have put it better myself".

Big jeers from Conservative benches as John McDonnell claims Labour will "tackle the deficit".

19.52

Ken Clarke claims the last Labour government was responsible for a "crazy credit boom". The shadow chancellor says the Conservatives supported Labour plans at the time.

Mr McDonnell claims the Conservatives have "skillfully used the deficit" over the last five years.

The House is lively tonight and lots of MPs are making interventions.

Mr McDonnell apologises for being "a bit harsh" after he asks Conservative MP James Cleverly if he thinks his point "adds to the sum of human knowledge". (Clearly the shadow chancellor doesn't think so ...)

The Speaker has just intervened to tell MPs to calm down and stop shouting like "some kind of group therapy session".

19.50

Mr McDonnell cites "professional advice" and families that have lost everything in Redcar who need a government that will "invest" as the reasons for his change of heart.

He says: "Austerity is not a political necessity, it is an economic choice".

Jacob Rees-Mogg intervenes to ask what Labour would do to balance the books - Mr McDonnell replies that the House should listen and find out.

He hints that the speech will include some detail on Labour's alternative plan, despite briefings to the contrary earlier today.

19.41

As George Osborne sits down, warning Labour is a "threat" to the economic stability of the country, Mr McDonnell gets up to speak.

He says he was going to try and "out Osborne Osborne" and vote with the government on the fiscal charter but he changed his mind after visiting Redcar steelworks.

Labour's shadow chancellor admitted in the beginning of his speech that it is "embarrassing" that he changed his mind, prompting laughter from the Conservative benches.

But he also points out that David Cameron has changed his mind on Saudi Arabia and the prison contract.

19.37

Some support in the House for Caroline Lucas:

Now back in chamber for finance debate. Shocking Tories shout down @CarolineLucas as she makes reasonable point that borrowing funds growth — Tommy Sheppard MP (@TommySheppard) October 14, 2015

The Chancellor says he urges all MPs "of any party" to support the fiscal charter. Adds Labour has performed "a spectacular u-turn".

19.35

The Chancellor has led Caroline Lucas, the Green MP, into a trap that has the Commons in "an uncontrollable state" (according to Mr Speaker).

Asked when the UK should stop borrowing Ms Lucas replied: "When you can no longer afford to pay it back".

Her comment has the green benches in stitches as Mr Osborne replies that the position "leads to bankruptcy".

19.30

George Osborne calls Labour a "shambles, as Ben from Exeter would put it".

His jibe follows comments made by senior Labour MP Ben Bradshaw who spoke of a shambolic party meeting this week after John McDonnell changed his mind on the fiscal charter - frustrating Labour MPs.

Mr Osborne adds that the Conservatives' bid to balance the books and help working people shows that the Tories are "the true party of Labour".

19.19

Opening the debate George Osborne, the Chancellor, said: "It's not the trade union barons who lose their jobs, it's not the richest, it's the poorest in society. It's the most progressive thing a government can do.

"If this is not the time to be reducing your debt, when is?"

Former shadow chancellor Chris Leslie made the first intervention after the Chancellor chose him to speak.

He told a rowdy House: "I am very clear we should not turn our face against a surplus."

18.50

Labour sources are now predicting that 20 backbenchers will abstain on tonight's vote.

18:28

Rumours abound that a member of the shadow cabinet is preparing to rebel over the fiscal charter regardless of the consequences.

Which raises a fundamental question - is Jeremy Corbyn willing to sack shadow ministers who defy him?

The decision is hugely significant for Labour as it will set a precedent for how he deals with future rebellions.

Lab shadow minister tells me he will abstain on fiscal charter. When whips said "They'll sack you", he replied..."I don't care, let them!" — Rob Merrick (@Rob_Merrick) October 14, 2015

17:30

Evening summary - and what's to come tonight

Labour could support military action in Syria without UN authorisation

Military action in Syria was looking more likely this morning, as Labour indicated it could support the extension of RAF airstrikes in Syria without the backing of a United Nations Security Council resolution.

In an article in The Guardian, Hilary Benn, the shadow foreign secretary, signaled that Labour would "look at the position again" if a Security Council resolution was vetoed by Russia.

It is unclear whether Mr Corbyn himself would vote for military strikes. In a statement the Labour leader said: "I met with shadow cabinet colleagues today, and Hilary Benn is setting out the position."

Labour could back unilateral disarmament

Speaking to the New Statesman, Maria Eagle, the shadow defence secretary, refused to rule out Labour adopting a stance for nuclear disarmament.

She said Labour's defence review will examine Trident “with a completely open mind” on “the basis of facts and figures”.

Asked if the review might back unilateral disarmament, she replied: “I’m not ruling it out”.

John McDonnell faces rebellion after admitting Labour's fiscal charter U-turn 'confused' MPs

As many as 30 Labour MPs are expected to rebel against the leadership in tonight's fiscal charter vote this evening.

Labour MPs have been left frustrated by John McDonnell's back tracking and his decision not to back George Osborne's economic plans.

Chris Evans is the latest Labour MP to announce they will abstain tonight on the government's fiscal charter. He said: "I cannot in good conscience support a position which I do not agree with".

Last month John McDonnell, Labour's shadow chancellor, pledged to “support” George Osborne’s fiscal charter – which would force the government to run a budget surplus within three years during “normal times."

Coming up

• MPs will debate the fiscal charter from around 7pm this evening

• The results of the vote is expected to be announced before 9pm

17:10

Kids Company's trustees and the Charity Commission were warned about problems at Kids Company as early as 2002

BREAKING: Concerns over Kids Company date back as far as 2002, documents seen by #newsnight's @xtophercook show http://t.co/SJ6RFN9m7X — BBC Newsnight (@BBCNewsnight) October 14, 2015

BBC Newsnight and BuzzFeed News say they have seen documents that show complaints were made about the lack of "experience or seniority" at Kids Company, back in 2002.

Complaints were also made abour "weak finances, conflicting information about numbers of users" and "the absence to date of any internal attempt even to track and record results".

Camila Batmanghelidjh, the former Kids Company chief executive, and the charity's chairman Alan Yentob, are due to be questioned by the House of Commons Public Administration Committee on Thursday.

16:30

Jeremy Corbyn’s wife turns down dinner with the Queen – and the Chinese President

Our Chief Political Correspondent reports that Laura Alvarez, Jeremy Corbyn’s wife, has turned down an invitation from the Queen to next week’s state banquet in honour of Chinese president Xi Jinping.

Mr Corbyn’s spokesman said on Wednesday that she had declined to attend but did not say why.

He denied that it was a "snub". He said: "Jeremy is going as Leader of the Opposition, that is that really."

In Wednesday’s PMQs, Mr Cameron downgraded Mr Corbyn from “Right Honourable” to “Honourable”, after a request was made by the Privy Council Office to the Houses of Parliament.

16:00

Jean-Claude Juncker says Britain does need to remain in the European Union

Just a day before Mr Juncker meets Mr Cameron in Brussels to discuss the renegotiation of Britain's membership, the President of the European Commission, said: “I am 150 per cent in favour of having Britain as a constructive member state of the European Union. We need Britain.

Mr Juncker, who is not a native English speaker, was then heard to say: “Personally I don’t think Britain needs European Union. But as a matter of conviction others might have a different feeling on that.”

However, aides insisted he had been misheard, and he had said: "I do think".

Vote Leave, the business-backed group campaigning for Brexit, said: "In the last two days both the chairmen of Lloyds and JCB have said the UK could thrive outside the EU. It is encouraging to see that Jean-Claude Juncker also agrees."

Mr Juncker said Talks in Brussels on Britain's demands for EU reform were not making "huge progress".

In an apparent sign of frustration with the UK, the Commission president told the European Parliament that "it takes two to tango" and that "our British friends have to dance".

Asked if Mr Juncker was right that talks on Mr Cameron's reform demands were not making "huge progress", the Prime Minister's official spokeswoman told a Westminster media briefing: "As we said from the outset, we are seeking to renegotiate the UK's relationship with the European Union. That is going to take time and it's going to take patience and what matters is that we get the right reforms to address the concerns of the British people.

"That's going to take sustained engagement and sustained work and that's what we've been doing and will continue to do."

15:50

Labour's new position on military intervention in Syria is "brave"

Jo Cox, the new Labour MP who is working with Conservatives on a plan to protect civilians in Syria, says Mr Corbyn is right to acknowledge that military action may play a part in the solution to the conflict.

This morning Labour indicated it could support the extension of RAF airstrikes against the Isis into Syria, without the backing of a United Nations Security Council resolution.

The new Labour leader has endorsed an article in The Guardian, in which Hilary Benn, the shadow foreign secretary, signaled that Labour would "look at the position again" if a Security Council resolution was vetoed by Russia.

If we are to help Syria’s people, we must take action http://t.co/8KID5jU6wg — Mary Creagh (@MaryCreaghMP) October 14, 2015

Miss Cox told PoliticsHome: “I think it’s brave and bold of Jeremy to acknowledge that a crisis on the scale of Syria might demand such action.

“I think it’s a really good shift, and it doesn’t mean we don’t try the UN route - I‘m always a big proponent of going down that route.

“But it means actually accepting that you are willing to intervene to protect civilians; that if there is a viable route it is not ruled out.”

“I think it’s excellent news and it puts pressure on the Government to come back to the House with a comprehensive plan,”

“Any backlash I don’t think will be huge. I think most people in the Labour party want it to save lives in Syria and help Syrian refugees, and I think that will be supported.”

15:30

Abortion law is to be devolved to Holyrood under changes to Scotland Bill

It has just been announced that Scottland will have new powers over its abortion laws.

This could see MSPs increasing or lowerering the existing 24-week limit for abortions.

BREAKING NEWS: Mundell announces at that abortion will be devolved to Scotland in the Scotland Bill...going to be a controversial move — David Maddox (@DavidPBMaddox) October 14, 2015

Jenny Marra, Scottish Labour's equalities spokesperson, has condemned the decision.

She said: "The secretary of state has taken this decision behind closed doors without any consultation with women’s groups across Scotland.

"The Smith Commission promised a process to consider this, but that seems to have only meant a process that involved ministers of the UK and Scottish governments, and not women across Scotland.

"Scottish Labour firmly believes that the safest way to protect the current legal framework around abortion is for it to remain at UK level where there is a strong consensus around the current time limits."

15:20

Deselected Labour MPs should stand as 'independent Labour'

Frank Field, the chair of the work and pensions select committee, has told the New Statesman that any MPs "picked off" should "cause a by-election immediately" and "stand as independent Labour".

He said: "If candidates are picked off they will stand as independent Labour cause a by-election immediately and a whole pile of us will go down there to campaign for then.

"They can't expel 60 of us. Momentum ought to know that they're not the only pair of wide eyes in the business. We're not powerless.

"Those of us who are not going to let Momentum win have a trump card on our side, which is that we would probably win the by-election."

Politicians have warned that Momentum, the campiagn goup backed by Jeremy Corbyn, is 'a threat to sitting MPs' and could seek to purge moderate MPs.

The group has said it will act as an independent campaigning arm of the Labour Party and will aim to influence party policy and organise a "mass movement" in homes and workplaces.

Frank Field says deselected Labour MPs should stand as 'independent Labour'

15:10

Rebel MPs defy leadership on fiscal charter

Chris Evans is the latest Labour MP to announce they will abstain tonight on the government's fiscal charter.

He said: "I cannot in good conscience support a position which I do not agree with".

Chris Evans is the latest Labour MP to announce they will abstain tonight on the government's fiscal charter.

He said: "I cannot in good conscience support a position which I do not agree with".

Liz Kendall, who challenged Mr Corbyn for the leadership, has also said she will abstain on the vote, joining Chris Leslie, the former shadow chancellor who has pledged to do the same.

Jamie Reed MP tweeted ealier that he also plans to abstain on the vote.

#pmqs I'll be abstaining tonight. It's a pantomime proposition. Parliament at its most pointless. — Jamie Reed (@jreedmp) October 14, 2015

Brandon Lewis, the Minister for Housing and Planning, told the BBC he believed Labour's economic policy was "a complete farce".

He said: "They've compiled this group of economic experts and haven't even spoken to them, never had a meeting with them, haven't discussed it with them - so they've now formed an economic policy without using the very experts they've brought in to advise them on economic policy.

"It's a complete farce"

Sounds like @labourwhips working hard this afternoon to minimise number of abstentions on fiscal charter and shore up McDonnell position — Laura Kuenssberg (@bbclaurak) October 14, 2015

14:45

Maria Eagle refuses to defend Corbyn’s statement that the assassination of Osama bin Laden was “a tragedy”

Speaking to the New Statesman, the shadow defence secretary, said: “I’m not here to say that Jeremy was right or wrong about anything he’s ever said, you have to ask Jeremy to justify what he’s said about things.

"But I don’t think it helps to take comments out of context is all I’d say, I don’t think it helps.

"Jeremy has said many things over the years from his perspectives. There’s no point asking me whether Jeremy’s saying the right things or not, he’s saying what he thinks and that’s fair enough.”

Miss Eagle, who herself supports the UK’s nuclear weapons system, also refused to rule out nuclear disarmament and said Labour's defence review will examine Trident “with a completely open mind” on “the basis of facts and figures”.

She said: “I think at a time when you’ve got austerity and big cuts in public expenditure it’s reasonable for people to ask whether or not the money that we’re spending on defence generally and on successor submarine, in particular, is properly spent.”

Asked if the review might back unilateral disarmament, she replied: “I’m not ruling it out”.

14:30

Jeremy Corbyn will challenge China over human rights abuses at State banquet

The Labour leader will challenge China's human rights record next Tuesday, when he attends the Queen's state banquet for the Chinese President at Buckingham Palace.

Mr Corbyn's spokesman confirmed: "He will be using the opportunity next week to raise the issue of human rights.

"There are meetings being discussed, and if he gets private meetings he will be raising it at those meetings. That is the right thing to do."

When asked if Mr Corbyn would sing the national anthem at the event, the spokesman confrmed: "Jeremy will take full part."

14:00

Lunchtime summary

Labour is facing rebellion as Cameron urges MPs to vote down Corbyn and support the government's fiscal charter. Mr McDonnell has said Osborne's call for a Labour rebellion is a ‘stunt'.

The government wants to run a budget surplus within three years during “normal times and David Cameron raised the issue of Labour's U-Turn on the charter five times during PMQs today.

John McDonnell, Labour's shadow chancellor, had said the party would back Osborne's plans, but in a dramatic U-turn on Monday, Labour MPs were told to vote against the proposal, triggering open attacks against the leadership. John McDonnell has since admitted admitted the U-turn "confused" Labour MPs.

• Labour have revealed they could now support using British military personnel in Syria, without the backing of the United Nations.

• It has been revealed that Jeremy Corbyn accepted £5,000 donation from Professor who claimed Palestinians have a “moral right” to terrorism.

• A Tribunal has ruled that GCHQ is permitted to monitor communications of MPs, as the Wilson doctrine “has no legal effect”.

• The latest figures from the Office for National Statistics show unemployment has fallen to a seven-year low while a record number of people are in work.

MPs will debate the fiscal charter at 7pm

• Labour's Carolyn Harris leads the debate on the effect of changes to welfare benefits in Westminster Hall (2.30pm - 4pm)

• James Brokenshire, the Immigration Minister, will be discussing refugees in the European Scrutiny Committee at 2:45pm

• The Childcare Bill will be debated in the House of Lords from 3pm

• The results of the fiscal charter vote is expected to be announced before 9pm

Who won PMQs?

13:29

Lib Dem activist runs down Whitehall naked

Stephen Tall, ormer Lib Dem Voice Editor, has completed his challenge to run down Whitehall naked - almost.

He pledged he would do so if the Lib Dems lost more than half their seats in the 2015 general election.

He was challenged by Kelvin Mackenzie to make good on his promise on the Daily Politics in September 2015. In return, the former Sun Editor said he would donate £5000 to Stephen Tall's chosen charity, Médecins Sans Frontières.

On Tuesday Mr Tall ran the length of Whitehall, filmed by a Daily Politics crew, wearing only a thong and Lib Dem rosette.

He told Daily Politics: "Everyone should do it once in their lives... It was a liberating experience."

Kelvin MacKenzie handed over a cheque for £5000 on the programme stating "it wasn't entirely naked, as a couple of witnesses saw, however, in the spirit of it all, MSF is a fantastic charity and so I am delighted, so long as I don't ever have to do it."

13:25

Labour in a ‘muddle’ over fiscal charter

Ann Pettifor, Labour's economic adviser, has told Radio Four the Party in a ‘muddle’ over fiscal charter and revealed John McDonnell did not consult her.

She told The World at One: "It's absolutely the right decision, I only wish he'd come to it earlier."

Miss Pettifor said "none" of the Economic Advisory Committeee have met with John McDonnell yet and they "have written to him to ask for it to happen soon."

She said: "Clearly they have a million things on their plates - it is all pretty intense and I am therefore not surprised that a formal meeting with a bunch of advisers has not been set up, but I do hope it will be soon."

"To have a group of experts then not even consult them is just astounding" @BrandonLewis on Labour's economic panel of advisers #wato — The World at One (@BBCWorldatOne) October 14, 2015

12:45

Reaction to Cameron vs Corbyn

David Cameron mentioned Labour's U-Turn on the budget charter five times during PMQs today and echoed George Osborne's calls for moderate Labour MPs to vote with the government this evening.

He made the point of referring to Mr Corbyn the "Honourable" and not the "Right Honourable", after last weeks Privy Council issue.

The Prime Minister defended the Government’s record on tackling inequality after Mr Corbyn said he was "taking away opportunities and life chances from the poorest in society".

Mr Cameron said there were 480,000 fewer children in households where nobody works and 2 million more people in work.

The Labour leader rather sarcastically thanked Mr Cameron for “doing his best” to answer the question.

Interestingly there was no answer from Mr Cameron on when he knew of Lord Ashcroft's non-dom tax status.

Mr Corbyn also revealed Labour will hold an Opposition Day Debate on tax credits next week.

#pmqs summary: Corbyn did better, but his slow questions meant Cameron had lots of time to think of a response. — Asa Bennett (@asabenn) October 14, 2015

Corbyn's new #pmqs style still a work in progress but civility + policy detail definitely have potential to get better of Cameron. — Rafael Behr (@rafaelbehr) October 14, 2015

Some of our Lobby meetings with the Prime Minister's official spokesman are more spikey than this #PMQs — Christopher Hope (@christopherhope) October 14, 2015

12:35

PMQS- Live

David Cameron offers his condolences to the family Georgia Williams and says lessons will be learned from this “tragic” case.

Cheryl Gillan, the ex-Tory minister, asks about a constituent who is waiting to hear whether NICE will fund the drugs for the treatment they need.

Cameron says the decision must be made by clinicians, but adds that the government shoudl talk to drug companies about reducingf the cost of drugs.

Kevin Brennan, the Labour MP, has asked when Cameron found out about Lord Ashcroft’s non-dom status.

Looking increasingly apparent that Cam doesn't have a good answer to the Ashcroft allegations. (About Non Dom status timings) — Harry Cole (@MrHarryCole) October 14, 2015

Jeremy Corbyn asked a question from Matthew about buying a home in London.

David Cameron replied that the government were “doing everything" they could to get councils to build more houses.

He said he wanted to see starter homes in the capital in the £150,000 to £200,000 price range.

And also called on the Labour leader to work together to “get London building, to get prices down”.

Chistoper Hope tweets:

Has Jeremy Corbyn killed #PMQs? The laboured questions take forever and remove the pace of debate. MPs are studying Twitter on their phones. — Christopher Hope (@christopherhope) October 14, 2015

David Cameron says: "Where we find a good Labour policy we implement it. Tonight we're implementing what was Labour policy until week ago."

The Prime Minister points out that backing the fiscal charter was actually Labour's policy until this week's U-turn.

Jamie Reed has just tweeted:

#pmqs I'll be abstaining tonight. It's a pantomime proposition. Parliament at its most pointless. — Jamie Reed (@jreedmp) October 14, 2015

John Bercow has told MPs to calm down, Jeremy Corbyn tells the Speaker: "I'm totally calm, and I don't intend to engage in any chuntering."

Mr Cameron urges Labour MPs to rebel and vote with the government on the fiscal charter.

The SNP's Angus Robertson says: "The UK has no policy to help Syrian refugees who have made it to Europe", says Angus Robertson to rising noise from MPs. He asks if the PM will learn the lessons of previous military actions."

Mr Cameron replies that he cannot remember a question with "so many errors" in it and says sometimes not intervening can be worse than intervening.

"I don't intend to engage in any CHUNTERING", Corbyn reassures John Bercow. #PMQs — Asa Bennett (@asabenn) October 14, 2015

David Cameron challenges Corbyn on Labour's "180 degree turn" on the fiscal charter.

But the Labour leader has ignored the question and has moved on to talk about housing.

Corbyn has suggested Mr Cameron writes to him with a proper answer on the issue.

A dig from Corbyn - 'can I bring the PM back to reality' — Laura Kuenssberg (@bbclaurak) October 14, 2015

"Three nil!" a Tory MP hoots as Jeremy Corbyn stands up for his next question #PMQs — Asa Bennett (@asabenn) October 14, 2015

Jeremy Corbyn has opened PMQs on tax credits, asking how much worse off Kelly, a single mother, will be because of welfare reforms.

He subsequently answers his own question, saying she'll be £1,800 worse off. He says that the Prime Minister should explain why it is such a good thing to make so many people worse off.

In a moment of sarcasm, he says: "The Prime Minister is doing his best and I admire that."

The chamber is remarkably quiet - MPs seem to be struggling to come to terms with Mr Corbyn's 'crowd sourced' approach to questions.

Jeremy Corbyn has changed his strategy ands is is using follow-up questions rather than a new question from the public each time.

Corbyn tweaks 'people's questions' approach on second outing -- presses PM himself with 2nd question. #PMQs — Ben Riley-Smith (@benrileysmith) October 14, 2015

Karl McCartney and David Cameron have just called Corbyn the "Honourable" and not the "Right Honourable".

PM David Cameron downgrades Jeremy Corbyn from "Right Honourable" last month to just "Honourable" today at #PMQs after Privy Council snub. — Christopher Hope (@christopherhope) October 14, 2015

Theer are rumours that John McDonnell is not in the Chamber.

David Cameron and Jeremy Corbyn have paid tribute to the two RAF airmen who were killed in the helicopter crash in Kabul.

Very muted support for Jeremy Corbyn from his own side as he stands up at #PMQs — Chris Ship (@chrisshipitv) October 14, 2015

Corbyn arrives at #PMQs, greeted by wall silence from his own side. #Awkward — Jake Berry (@JakeBerry) October 14, 2015

Must be very tempting for Cameron to shoehorn in a reference to ‘Ben from Exeter’ in response to Corbyn’s crowd sourced questions at PMQS — James Forsyth (@JGForsyth) October 14, 2015

11:45

Jeremy Corbyn has crowd sourced PMQs

At PMQs today Jeremy Corbyn is expected to use questions from members of the public and to follow them up with some of his own.

After a welcome change of heart from the Tories over the Saudi prison contract I am looking forward to another People's PMQs at midday #PMQs — Jeremy Corbyn MP (@jeremycorbyn) October 14, 2015

on @daily_politics shortly ahead of #pmqs - Corbyn has crowd sourced Qs again but there will be fewer subjects — Laura Kuenssberg (@bbclaurak) October 14, 2015

"I think we’ll see him mix it up, maybe a couple of qs from the public and some follow up" says Clive Lewis on Corbyn's PMQs approach — PoliticsHome (@politicshome) October 14, 2015

A new YouGov report has revealed public attitudes to Corbyn’s ‘People’s PMQs’.

Less than half – 46 percent – felt there had been too much ‘party political point-scoring instead of answering the question’, compared to 67 percent who said the same in December 2013.

Just 23 percent said that it was ‘too noisy and aggressive’, compared to 47 percent previously.

Only 10 percent said that it ‘puts me off politics’ compared to 33 percent last time.

And more than twice as many respondents agreed that ‘MPs behaved professionally’ – 34 percent thought so after the September sitting compared to just 16 percent in 2013.

11:40

Boris Johnson says Tom Watson must apologise for an "absolutely hysterical" campaign against Leon Brittan

Speaking from a trade mission to Japan, Mr Johnson said: “You’ve seen from the Met their contrition about this and their sense that it was a mistake not to apologise earlier. I know that Sir Bernard feels that himself.”

He did, however, call for an apology from Mr Watson for pressurising prosecutors to reopen the rape investigation into Lord Brittan in 2014, after it had initially been dropped by Scotland Yard the year before.

“He has plainly, without a shred of evidence, mounted an absolutely hysterical campaign,” he said.

11:30

Corbyn suggests Labour could support military action in Syria

Military action in Syria was looking more likely this morning, as Labour indicated it could support the extension of RAF airstrikes against the Isis into Syria without the backing of a United Nations Security Council resolution.

The party's annual conference last month voted not to support military action in Syria without the authorisation of the UN, amid expectations that Prime Minister David Cameron will soon put the issue to a vote in the House of Commons.

But in an article in The Guardian, shadow foreign secretary Hilary Benn has now signalled that Labour would "look at the position again" if a Security Council resolution was vetoed by Russia.

And he warned that inaction would have "consequences" on the ground for people in Syria.

It is unclear whether Mr Corbyn himself would vote for military strikes. It is worth noting Mr Corbyn tasked his shadow cabinet member to make the announcement, which would allow the Labour leader to vote against RAF strikes.

In a statement the Labour leader said: "I met with shadow cabinet colleagues today, and Hilary Benn is setting out the position."

Mr Corbyn has previously said MPs would be given a free vote on the issue.

Hilary Benn told Sky News this morning that the UK should be offering "protection to the Syrian people who have been at the eye of the storm".

11:18

Jeremy Corbyn accepted £5,000 donation from Professor who claimed Palestinians have a “moral right” to terrorism

Guido Fawkes report Professor Ted Honderich donated the money to Corbyn’s leadership campaign last month.

In a letter to the Guardian in 2011, the Professor wrote: “Palestinians have a moral right to their terrorism within historic Palestine against neo-Zionism”

“Terrorism, as in this case, can as exactly be self-defence, a freedom struggle, martyrdom, the conclusion of an argument based on true humanity”

In an interview with Iranian state television channel Press TV, Honderich is quoted saying: “What is happening in Palestine, what is being done by neo-Zionism is such that it gives Palestinians, I happen to believe this and it’s gotten me into trouble, a moral right to their terrorism against neo-Zionism within all of historic Palestine.”

EXCLUSIVE: Terror Supporter Donated £5,000 to Corbyn’s Leadership Campaign http://t.co/1xtJ1x9n3f pic.twitter.com/HlC39xNyIO — Guido Fawkes (@GuidoFawkes) October 14, 2015

11:05

New Labour leadership is 'messy'

Andy Burnham, the shadow home secretary, has told the BBC: "We've come through a leadership election where everyone's taken different positions, and it's messy and the party needs time to regroup.

"And that's what's happening and obviously a new leadership team needs time to find its feet and all the rest of it."

Speaking on the issue of Labour's U-turn on the fiscal charter, he said: Obviously, it's been a complicated process, not ideal - let's be clear and honest about that. But this is the right position.

"And I think it's the position Jeremy Corbyn was outlining in his leadership bid and it was the position that I was outlining. We shouldn't go along with these traps and stunts, this is what they're doing, I think the public can see through that."

10:55

GCHQ permitted to monitor communications of MPs

The Investigatory Powers Tribunal has ruled that the Wilson doctrine, set up 50 years ago to prevent British spies listening in on MPs, “has no legal effect”.

Instead they said it was “a political statement in a political context, encompassing the ambiguity that is sometimes to be found in political statements”.

Caroline Lucas, the Green Party MP, has described today's judgement on the Wilson Doctrine as a "dangerous body blow for parliamentary democracy."

Today's judgement on the Wilson Doctrine is a dangerous body blow for parliamentary democracy: http://t.co/z5F0Emx2wl — Caroline Lucas (@CarolineLucas) October 14, 2015

The tribunal stated: “The Wilson doctrine does not operate so as to create a substantive legitimate expectation.

“The Wilson doctrine has no legal effect but in practice the [intelligence] agencies must comply with the draft code and with their own guidance.

“MPs’ communications with their constituents and others are protected, like those of every other person, by the statutory regime established by part 1 of Ripa 2000.”

Caroline Lucas has described today's judgement as a "dangerous body blow for parliamentary democracy"

10:40

MPs left frustrated by the shadow chancellor's fiscal charter U-Turn

Labour MPs have been left frustrated by John McDonnell's decision not to back George Osborne's fiscal charter despite previously saying he would, Kate McCann reports.

A confusing memo sent out to all of the party's MPs last night claimed Labour has changed its stance because the new fiscal charter is different to the one that came before it. Yet the 'lines to take' document makes no mention of the interview Mr McDonnell gave to the Guardian in which he promised to back the Chancellor's position to counter claims Labour isn't tough enough on the economy.

Under the heading 'Why have you changed your mind?' it states: "The Fiscal Charter Parliament is debating on Wednesday is different to the one Labour voted for in January.

There is now no collective Shadow cabinet responsibility in our Party, no clarity on economic policy and no credible leadership. @BBCr4today — Mike Gapes (@MikeGapes) October 13, 2015

"The previous vote was for the Government’s previous fiscal charter. Labour voted for this Charter because our stated policy was to cut the deficit every year and get the current budget into surplus and national debt falling as soon as possible in the next Parliament. The previous Charter was consistent with that position so we voted for it.

"This Charter is different. It binds the hands of a government to austerity, regardless of what’s right for Britain, it would mean that we couldn’t borrow for capital investment.

"It’s becoming increasingly clear that George Osborne is simply playing political games, regardless of the changing economic situation. Labour will vote against this Tory ideology of austerity."

It even calls Mr Osborne out for the "shift" between the old charter and the new one.

But not a word about how Mr McDonnell has shifted his own position.

10:30

Nick Clegg: Big mistake sitting next to Cameron at PMQs

Nick Clegg, the former deputy prime minister and Liberal Democrat leader, told Newsnight on Tuesday: “The optics of politics made it almost impossible for people to understand what Liberal Democrats did in the Coalition.

“Sitting mute next to David Cameron at Prime Minister’s Questions every week was a sort of terrible encapsulation of what our critics said about us, that we were somehow just sort of passengers in the Government when in fact we were active architects rather than observers of the Government.

“And maybe my biggest mistake was sitting where I did during Prime Minister’s Questions and I should have sat somewhere else.

09:57

Employment rate highest since records began

The latest figures from the Office for National Statistics show unemployment has fallen to a seven-year low while a record number of people are in work.

The jobless total fell by 79,000 to 1.7 million in the quarter to August, the lowest figure since the summer of 2008, giving a jobless rate of 5.4 percent.

New stats show highest rate of employment in our history at 73.6%, youth unemployment rate at 7 year low & pay rising strongly at 3% — George Osborne (@George_Osborne) October 14, 2015

Iain Duncan Smith, Work and Pensions Secretary, said: "This is a fantastic set of figures, which show more people in work than ever before and a strong growth in wages.

"That is a credit to British business, and a credit to the hardworking people of this country.

"Alongside this, unemployment has fallen to the lowest level since 2008, and long-term unemployment has dropped by a staggering quarter over the last year.

Unemployment falls: "Hopefully now people are starting to feel better off": Iain Duncan Smith http://t.co/JoBK70ijOT — Victoria Derbyshire (@VictoriaLIVE) October 14, 2015

"This positive picture is replicated up and down the country, demonstrating that this one-nation Government is delivering a society with opportunity and security for all at its heart."

Average earnings increased by 3 percent in the year to August, 0.1 percent up on the previous month.

The number of people on the claimant count last month increased by 4,600 to 796,200.

George Osborne, responding to the new figures, said: "It is great news that Britain’s economic plan continues to create jobs and increase pay. We’ve got the highest rate of employment in our history, and real terms pay rising strongly.

"But with recent data showing our trading partners’ growth is slowing we must not be complacent. All of this progress will be at risk unless we carry on with our plan to build a resilient economy, delivering the economic security of a country that lives within its means."

James Sproule, chief economist at the Institute of Directors, said: Another month of impressive jobs figures and strong wage growth show that the business-led recovery is well on track.

"Despite uncertainties at home and abroad, employers have continued to create jobs, raise productivity and boost pay in a vote of confidence in the British economy. Employment is up in most sectors and across the country, pay is growing and long-term, short-term, and youth unemployment are all falling.

"This is a welcome sign of a healthy economy, a strong private sector, and a tightening labour market.

Matthew Whittaker, the chief economist at the Resolution Foundation, said: "It’s encouraging to see unemployment falling again, after a pause earlier this year. But there is significant variation in the extent to which this jobs’ revival has been shared across the country. Many parts of the UK remain a long way short of their pre-recession levels."

09:55

John McDonnell says Labour won’t play "these silly Westminster games anymore"

Writing in the Mirror this morning, the shadow chancellor writes: “Labour won’t play these silly Westminster games any more.

“We are calling on Labour MPs to oppose this Tory Charter trick.

"George Osborne is pretending he wants Parliament to tie his hands. What he’s really trying to do is play a Westminster trick, and tie ours."

He said the Chancellor is preventing Labour from even making changes to the Charter and is "closing down debate."

09:50

Boris Johnson says rugby rules should be changed after Japan crashes out of the world cup.

Mr Johnson described the team as "heroic" and said it was "totally unfair" that the team had won three matches in a row, but still failed to make it through to the quarter finals.

Asked if he backed a rule change in the game, Mr Johnson told the BBC: "I'd support that. It seems totally unfair that they should win three times in their pool group and not go through.

Boris Johnson becomes the first outsider allowed to wear Shinto priest shoes at the Meiji Jingu shrine in Japan pic.twitter.com/pNDz6Fxo39 — Sam Lister (@sam_lister_) October 14, 2015

"They are plainly heroes here and they deserve to be. They are fantastically - a fantastic, heroic performance."

He said the Japanese team had "won the hearts" of the British public with their "flair and sportsmanship".

09:40

John McDonnell says Labour MPs won't fall for Osborne's 'stunt'

The Shadow chancellor has told the BBC that George Osborne's call for moderate MPs to rebel against him on the Fiscal Charter is a "stunt".

Mr McDonnell said: "That's an Osborne stunt isn't it really, I don't think anyone will rise to it they'll see it for what it's worth - just as another stunt. We're trying to get onto serious economic debate today not those sort of political stunts any more."

He also admitted MPs were confused: "Most probably yes but we'll make it clear today. We've had to change position on a couple of issues but today we'll clarify everything."

09:19

Today's Telegraph cartoon

The Chancellor is looking today to exploit Labour's 'obvious chaos' after this weeks sudden policy reversal.

In a dramatic U-turn on Monday, Labour MPs were told to vote against Osborne's Fical Charter, which has triggered open attacks from MPs against the leadership.

08:40

Fiscal Charter is not a 'stunt'

David Gauke, the Financial Secretary to the Treasury, has told Radio 4 the Fiscal Charter is "perfectly reasonable" and not a stunt.

He also argued it "increases accountability of politicians."

Danny Blanchflower, Labour's new economic adviser, told the same programme that George Osborne's Fiscal Charter was "a silly rule that nobody is going to obey."

Mr Gauke said: "We need to show that in normal years when the economy is growing strongly we can run an overall surplus so we can get debt down, and ensure that we're well prepared for future shocks to our economy.

"It's important that we have in place a sound framework for delivering sound public finances and I urge all members of Parliament of whatever party to support this charter so that we can put it in place"

08:25

Labour could support military action in Syria without UN authorisation

Hilary Benn, Shadow Foreign Secretary, has indicated that Labour has adopted a new position on carrying out military action in Syria.

During Labour's conference in Brighton earlier this month, delegates made it clear they would only support RAF strikes in Syria if there was a “clear and unambiguous” UN authorisation.

But in an article for the Guardian, which has been endorsed by Jeremy Corbyn, Mr Benn has suggested Labour could now support using British military personnel in Syria, without the backing of the UN.

Mr Benn writes: “On the question of airstrikes against Isil/Daesh in Syria, it should now be possible to get agreement on a UN security council chapter VII resolution given that four of the five permanent members – the USA, France, Britain and Russia – are already taking military action against Isil/Daesh in Iraq or Syria or in both countries."

“Of course, we know that any resolution may be vetoed, and in those circumstances we would need to look at the position again.”

Mr Corbyn has backed the change in position, saying: “I met with shadow cabinet colleagues today and Hilary Benn is setting out the position today.”

This marks a huge shift for Mr Corbyn, who has repeatedly outlined his opposition to any military action in Syria.

08:05

Osborne says there is still 'so much more' Britain needs to do to get the economy operating at full speed

CNBC has spoken to George Osborne, UK Chancellor of the Exchequer at the IMF annual meeting in Lima, Peru.

Mr Osborne said: “We've got one of the highest participation rate, highest employment rate in our history at the moment and low unemployment. But I don't come here feeling it's a case of 'job done.'

"I always come to these meetings thinking, 'God, there's so much more we need to do: to expand our exports, make our productivity better, build more infrastructure, make sure our workforce is better trained. So I come away, more with a sense of lots to do, rather than what's done."

07:45

Osborne urge moderate Labour MPs to support 'economic sanity'

The Chancellor is looking today to exploit Labour's 'obvious chaos' after this weeks sudden policy reversal.

Last month John McDonnell, Labour's shadow chancellor, pledged to “support” George Osborne’s fiscal charter – which would force the government to run a budget surplus within three years during “normal times."

However in a dramatic U-turn on Monday, Labour MPs were told to vote against the proposal, triggering open attacks from the PLP against the leadership.

The Chancellor warned: "This is not socialist compassion - it's economic cruelty.

"So today, with Labour's economic policy in obvious chaos, I call on all moderate, progressive Labour MPs to defy their leadership and join with us to vote for economic sanity.

"Failing that, they should at least follow the advice of the former shadow chancellor and abstain."

On Tuesday Mr McDonnell explained he still belives the deficit needs to be reduced.

He said: “I have changed my mind, but I haven’t changed my mind on the principles of what the charter is standing for, which is we need to tackle the deficit and we will tackle the deficit."

“But I have changed my mind on the parliamentary tactics. Originally what I said to people was ‘look that charter is a political stunt, it’s a political trap by George Osborne, it is virtually meaningless – he ignores it himself time and time again.

“He never meets his targets. So this is just a stunt and let’s ridicule it in the debate and vote for it because it’s a meaningless vote."

In an email to Labour Party members, party officials said: “It is crucial that we reduce the deficit, and Labour takes this mission seriously, but it must never be on the backs of the most vulnerable, or at the cost of the key public services we all rely on.”