British prime minister Tony Blair suffered his first defeat in the House of Commons in eight years this evening when MPs rejected controversial anti-terrorism legislation.
Tony Blair had made a direct appeal to MPs to back the controversial clause
Earlier, Mr Blair said MPs had a "duty" to back the legislation, which included 90-day detention without charge for terror suspects. But Mr Blair lost the vote by 322 votes to 291, with at least 40 of this own party voting against him. Instead, the British parliament voted by 323 votes to 290 for a compromise plan for 28-day detention.
Financial markets reacted swiftly to Mr Blair's defeat, the pound dropping a 1/4 cent against the dollar straight after the vote. Bookmaker William Hill shortened the odds against Mr Blair leaving office before the end of next year from 3-1 to 7-4. Hills also lengthened the odds against him beating Margaret Thatcher's record eleven-and-a-half years in office from 3-1 to 5-1.
During stormy exchanges during prime minister's questions this morning, Mr Blair urged MPs of all parties to be "responsible" in backing the proposals.
Cabinet ministers Gordon Brown and Jack Straw returned to Westminster after breaking off trips overseas in order to vote in the report stage of the Terrorism Bill, which was seen as a key test of Mr Blair's authority.
British Prime Minister Tony Blair
Ministers ducked a vote on the amendment last week amid real concerns that it might result the Blair government's first defeat in the Commons since Labour came to power in 1997.
Conservative leader Michael Howard today insisted that no example had been given of a case in which police needed 90 days in order to uncover evidence of a terrorist plot.
He warned that lengthy detention periods risked alienating Britain's Muslim communities. Speaker Michael Martin had to intervene to silence heckling from both sides of the house, including Conservative MP Charles Walker, who appeared to accuse the Prime Minister of creating a police state.
But Mr Blair quoted senior police officers as saying that the 90-day detention period was "absolutely vital" for the protection of national security.
He told MPs: "We are not living in a police state, but we are living in a country that faces a real and serious threat of terrorism - terrorism that wants to destroy our way of life, terrorism that wants to inflict casualties on us without limit.
"When those charged with protecting our country provide, as they have, a compelling case for action, I know what my duty is.
"My duty is to support them, and so is the duty - in my view - of every member of this House."
Despite his defiant rhetoric, Mr Blair appeared to be contemplating the prospect of possible defeat in the vote, telling MPs: "Sometimes it is better to lose and do the right thing than win and do the wrong thing."