Summary

  • Reaction to the Lords defeat of government plans to cut tax credits

  • Government announces review, led by Lord Strathclyde, into workings of Parliament

  • Chancellor George Osborne says he will "lessen" impact of the cuts

  • He says government will "deal with" constitutional issue of Lords defeating measure backed by MPs

  • Peers backed a Labour motion, by 289 votes to 272, calling for full compensation for those affected