Flagship government education reforms have suffered a series of setbacks in the House of Lords.

The government suffered a total of three defeats, with peers initially rejecting plans to allow school governing bodies to form companies.

They also backed Conservative proposals to cut red tape in schools.

The third defeat came over a Liberal Democrat amendment to get rid of school forums, which had been proposed under the bill.

Unaccountable?

Lib Dem peer Baroness Walmsley condemned the forums as "unelected and unaccountable".

With Parliament's long summer break looming, ministers will now have to find time to reverse the defeats before the Commons recess on 24 July.

But even if they manage to send the bill back to the Lords, peers may be unwilling to compromise.

The legislation proposes the deregulation of schools, freeing head teachers so they can be more "innovative".

The bill also provides for bonus payments for teachers at top-performing schools.

Productive partnership?

Tory former education spokesman Baroness Blatch said the power for schools to join together to form companies would be "a recipe for chaos".

For the government, Lord McIntosh insisted school companies would operate in a "positive, productive partnership" with their local education authorities.

A spokesman from the Department of Education said that the Lords' amendments would be reconsidered in the Commons, but gave no indication as to how the government would proceed.