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Brown defeated over Gurkha rules Brown defeated over Gurkha rules
(10 minutes later)
Gordon Brown's government has suffered a shock defeat in the Commons on its policy of restricting the right of former Gurkhas to settle in the UK.Gordon Brown's government has suffered a shock defeat in the Commons on its policy of restricting the right of former Gurkhas to settle in the UK.
MPs voted by 267 to 246 in favour of a Lib Dem motion that all Gurkhas be offered an equal right of residence.MPs voted by 267 to 246 in favour of a Lib Dem motion that all Gurkhas be offered an equal right of residence.
Tory leader David Cameron backed the Lib Dem motion to scrap rules which leader Nick Clegg called "shameful".Tory leader David Cameron backed the Lib Dem motion to scrap rules which leader Nick Clegg called "shameful".
Immigration minister Phil Woolas told MPs new proposals would be published before Parliament's summer recess.Immigration minister Phil Woolas told MPs new proposals would be published before Parliament's summer recess.
In a statement, he said: "The government respects the will of the House of Commons." In a statement, he said: "This government respects the will of the House of Commons."
He added that all outstanding applications for UK residence by Gurkhas would be dealt with by the end of May.He added that all outstanding applications for UK residence by Gurkhas would be dealt with by the end of May.
Mr Brown's first significant defeat as PM came despite last minute concessions being offered to rebel Labour MPs. Mr Brown's first significant defeat as prime minister came despite last-minute concessions being offered to rebel Labour MPs.
Home Secretary Jacqui Smith had promised to start a review of the new criteria - which were only announced last week - by the summer and gave an assurance veterans would not be deported.
'Immense victory''Immense victory'
The vote is not binding, but it represents an embarrassing Commons defeat for Gordon Brown. The Commons vote is not binding, but it represents an embarrassment for the government.
The defeat comes at a time when he is facing criticism over other issues, including his reform plans for MPs' expenses, which will go to a vote on Thursday. It comes at a time when Mr Brown is facing criticism over other issues, including his reform plans for MPs' expenses, which will also go to a vote on Thursday.
It is the biggest Commons victory achieved by the Liberal Democrats since their formation two decades ago, and is the first time a government has lost an opposition day debate since James Callaghan in January 1978.It is the biggest Commons victory achieved by the Liberal Democrats since their formation two decades ago, and is the first time a government has lost an opposition day debate since James Callaghan in January 1978.
The real worry for Gordon Brown and his whips is that this could merely be the warm-up for Thursday's vote on expenses BBC's Gary O'Donoghue Defeat spells trouble for Brown In quotes: Reaction to vote In full: The Labour rebelsThe real worry for Gordon Brown and his whips is that this could merely be the warm-up for Thursday's vote on expenses BBC's Gary O'Donoghue Defeat spells trouble for Brown In quotes: Reaction to vote In full: The Labour rebels
There were shouts of "resign" as the numbers were announced. The Lib Dems said 28 Labour MPs had voted for their motion - although that is thought to include one Labour MP who voted both for and against the motion.There were shouts of "resign" as the numbers were announced. The Lib Dems said 28 Labour MPs had voted for their motion - although that is thought to include one Labour MP who voted both for and against the motion.
After the vote Mr Clegg and Mr Cameron joined actress Joanna Lumley, who has been campaigning on the issue, and Gurkhas outside Parliament.After the vote Mr Clegg and Mr Cameron joined actress Joanna Lumley, who has been campaigning on the issue, and Gurkhas outside Parliament.
Both leaders said, while the vote was not binding, the government would have to change its policy.
Mr Clegg said: "This is an immense victory on a series of fronts: for the rights of Gurkhas who have been waiting so long for justice, a victory for Parliament, a victory for decency."Mr Clegg said: "This is an immense victory on a series of fronts: for the rights of Gurkhas who have been waiting so long for justice, a victory for Parliament, a victory for decency."
He added that it was "the kind of thing people want this country to do".He added that it was "the kind of thing people want this country to do".
Uncomfortable episodeUncomfortable episode
Mr Cameron said it was "embarrassing" for the prime minister because his efforts to strike a "shoddy deal" with Labour rebels had failed.Mr Cameron said it was "embarrassing" for the prime minister because his efforts to strike a "shoddy deal" with Labour rebels had failed.
He added: "Today is a historic day where Parliament took the right decision. The government have got to come back with immediate proposals so that the Gurkhas can have an answer."He added: "Today is a historic day where Parliament took the right decision. The government have got to come back with immediate proposals so that the Gurkhas can have an answer."
Ministers should come back with immediate proposals to change the system, he said.
MPs reject Brown's Ghurka policyMPs reject Brown's Ghurka policy
Among Labour MPs voting for the Liberal Democrat motion were home affairs committee chairman Keith Vaz, ministerial aide Stephen Pound and former cabinet minister Andrew Smith.Among Labour MPs voting for the Liberal Democrat motion were home affairs committee chairman Keith Vaz, ministerial aide Stephen Pound and former cabinet minister Andrew Smith.
Mr Pound said he had resigned as a parliamentary private secretary to vote against the government.Mr Pound said he had resigned as a parliamentary private secretary to vote against the government.
Labour MP Martin Salter, chairman of the Parliamentary group on Gurkhas' rights, abstained.Labour MP Martin Salter, chairman of the Parliamentary group on Gurkhas' rights, abstained.
He told the BBC he refused to support the government but wanted to acknowledge the concessions made.He told the BBC he refused to support the government but wanted to acknowledge the concessions made.
'Major changes''Major changes'
He added: "It is the amount of abstainers that did it. Comparatively few Labour MPs actually voted for the Lib Dem motion but an awful lot of people sat on their hands as a way of showing their determination to finish this issue."He added: "It is the amount of abstainers that did it. Comparatively few Labour MPs actually voted for the Lib Dem motion but an awful lot of people sat on their hands as a way of showing their determination to finish this issue."
BBC political correspondent Carole Walker said there would now be enormous pressure on the government to change the guidelines on settlement.
She added that as well as the blow to Mr Brown, it was also another uncomfortable episode for Jacqui Smith - who has faced recent questions over her expenses and handling of a Home Office leaks inquiry.
Mr Cameron and Mr Clegg said the policy should be changed quickly
Some 36,000 former Gurkhas have been denied UK residency because they served in the British army before 1997.Some 36,000 former Gurkhas have been denied UK residency because they served in the British army before 1997.
Ministers had introduced new rules allowing more soldiers to settle here based on long service, medals received, and those injured in battle.Ministers had introduced new rules allowing more soldiers to settle here based on long service, medals received, and those injured in battle.
Mr Cameron and Mr Clegg said the policy should be changed quickly
The Home Office said that new rules would allow about 4,300 more to settle, but the Gurkha Justice Campaign said it would be just 100.The Home Office said that new rules would allow about 4,300 more to settle, but the Gurkha Justice Campaign said it would be just 100.
Defending the policy at prime minister's questions earlier, Gordon Brown said: "Since 1997 we have taken the first action to give justice to the Gurkhas.Defending the policy at prime minister's questions earlier, Gordon Brown said: "Since 1997 we have taken the first action to give justice to the Gurkhas.
"During that period of time the first ever Gurkhas to have rights of settlement in Britain has been agreed and 6,000 have now applied successfully and come into the country.""During that period of time the first ever Gurkhas to have rights of settlement in Britain has been agreed and 6,000 have now applied successfully and come into the country."
He said they had created equal pay and pensions for the Gurkhas and doubled the pensions of people staying in Nepal.He said they had created equal pay and pensions for the Gurkhas and doubled the pensions of people staying in Nepal.
But he said: "We have got to balance our responsibilities to those who have served our country with the finance that we need to be able to meet these obligations - and not base our offer on money we cannot afford."But he said: "We have got to balance our responsibilities to those who have served our country with the finance that we need to be able to meet these obligations - and not base our offer on money we cannot afford."
Ms Lumley said the campaigners were "elated" as they had expected to lose the vote.Ms Lumley said the campaigners were "elated" as they had expected to lose the vote.
"When it came through we saw it on the screen and I can't tell you the sense of elation," she said."When it came through we saw it on the screen and I can't tell you the sense of elation," she said.