Osborne faces defeat on his Budget motion next Tuesday unless he can deal with the Eurosceptic rebellion on the tampon tax – not repealed by the chancellor today thanks to Brussels. Tory MP Anne-Marie Trevelyan says:

The people we elect should be responsible for setting the taxes in this country – not unelected EU judges and bureaucrats. It is a fundamental principle of democracy that there should be no taxation without representation which is what we now have.

‘Our Chancellor is unable to take this decision that will benefit women because VAT is controlled by the EU.

Will the Outers scupper the smooth passage of the Budget?