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MPs approve Chancellor George Osborne's Budget MPs approve Chancellor George Osborne's Budget
(35 minutes later)
MPs have approved the Budget after Chancellor George Osborne was forced to shelve planned cuts to disability benefits.MPs have approved the Budget after Chancellor George Osborne was forced to shelve planned cuts to disability benefits.
The proposed cuts led to Iain Duncan Smith resigning from the cabinet and attacking the "indefensible" changes. The changes had led to a rift in the Tory Party and the resignation of Iain Duncan Smith from the cabinet.
Ahead of the vote, Mr Osborne defended his handling of the economy and told MPs that where mistakes were made he was ready "to listen and learn". Ahead of the vote, Mr Osborne defended his handling of the economy, but told MPs that where mistakes were made he was ready "to listen and learn".
The Budget was accepted by 310 votes to 275, a government majority of 35.The Budget was accepted by 310 votes to 275, a government majority of 35.
MPs are still voting on a series of Budget Resolutions which are intended to allow measures in the Budget to come into effect immediately.
Amendments to scrap the "tampon tax" and an increase in VAT on solar panels were accepted by the government.Amendments to scrap the "tampon tax" and an increase in VAT on solar panels were accepted by the government.
'Too far'
Earlier, the chancellor confirmed to MPs that he would not proceed with planned cuts to Personal Independence Payments (PIPs), likely to have affected up to 640,000 people, saying the changes did not "command support".Earlier, the chancellor confirmed to MPs that he would not proceed with planned cuts to Personal Independence Payments (PIPs), likely to have affected up to 640,000 people, saying the changes did not "command support".
He also said no further welfare savings were anticipated beyond the £12bn already approved by Parliament towards his target of balancing the books by 2020.He also said no further welfare savings were anticipated beyond the £12bn already approved by Parliament towards his target of balancing the books by 2020.
'Political chancer'
But Labour demanded an explanation as to how Mr Osborne would plug the £4.4bn gap in the Budget left by the rethink.But Labour demanded an explanation as to how Mr Osborne would plug the £4.4bn gap in the Budget left by the rethink.
Former work and pensions secretary Yvette Cooper said he would either have to raid the welfare budget further or "ditch" his self-imposed cap on overall benefits spending.Former work and pensions secretary Yvette Cooper said he would either have to raid the welfare budget further or "ditch" his self-imposed cap on overall benefits spending.
In his resignation letter, Mr Duncan Smith said the latest cuts were a "compromise too far", and criticised the government for targeting disability benefits while cutting taxes. He said it flew in the face of the prime minister's and Mr Osborne's oft-repeated claim that "we are all in this together". Mr Osborne said the cost of abandoning the policy could be absorbed because public spending was under control.
Mr Osborne said he was was "sorry" Mr Duncan Smith had resigned and told MPs he was proud of their work together in government. Labour also called on the chancellor to apologise for his attempt to introduce the cuts.
But he rejected his former colleague's charge that the chancellor's fiscal targets risked dividing society and working-age benefit claimants were being unduly penalised by a "desperate search" for savings. And shadow chancellor John McDonnell questioned Mr Osborne's "fitness for the office he now holds".
Ms Osborne was a "political chancer" whose "grubby, incompetent manipulations" could not be defended, he said.
IDS tribute
Mr Duncan Smith resigned as work and pensions secretary on Friday over the proposals to cut disability benefits at the same that taxes were being cut for higher earners.
In his resignation letter, he said the latest cuts were a "compromise too far" and flew in the face of David Cameron's and Mr Osborne's oft-repeated claim that "we are all in this together".
In the Commons, Mr Osborne said he was sorry Mr Duncan Smith had resigned and told MPs he was proud of their work together in government.
He praised his former colleague for "helping to make work pay, protecting the vulnerable and breaking the decades-old cycle of welfare dependency".
But the chancellor rejected Mr Duncan Smith's charge that his fiscal targets risked dividing society and that working-age benefit claimants were being unduly penalised by a "desperate search" for savings.
"Without sound public finances there is no social justice," he told MPs.
He said spending on disability benefits would still be higher in 2020 than it was now and 300,000 people with disabilities had found work in the past couple of years.He said spending on disability benefits would still be higher in 2020 than it was now and 300,000 people with disabilities had found work in the past couple of years.