Foundation hospitals have proved a divisive idea

Peers had been expected to vote down foundation hospitals again on Thursday.

But with parliamentary time running out ahead of next week's State Opening of Parliament there was an eleventh hour concession.

The move came shortly after Commons leader Peter Hain said he was prepared for Parliament to sit through to Tuesday and not break up on Thursday.

HOSPITAL VOTES (all times GMT) Weds 1700: MPs back plans by 17 votes Weds 2230: Lords reject plans by 68 Thurs 0215: MPs back plans by 41 votes Thurs 1130: Lords debate of plans again Q&A: Foundation hospitals row

Lords shadow health spokesman Earl Howe said that, much as he did not like the plans, peers had to recognise the validity and strength of the Commons.

"An issue of this kind is essentially one of policy rather than constitutional principle," he said.

"It is not for us to continue to resist the will of the elected House."

Lib Dem health spokesman in the Upper House, Lord Clement-Jones, accused the government of "railroading" the foundation hospitals policy through Parliament.

"The government's foundation trust proposals are still fundamentally flawed," he said in a statement.

The controversial plans give limited operational and financial freedom to some hospital trusts in England.

Late sitting

Tory leader Michael Howard had described the plans for foundation hospitals as a "sham".

Health Minister John Hutton had attacked the "unelected" House of Lords for trying to block the will of the elected representatives in the Commons.

The prime minister will be worried that Labour backbenchers have now developed the habit of rebelling The BBC's Nick Assinder Analysis: Blair's close shave

The foundation hospital plans were introduced as part of the Health and Social Care (Community Health and Standards) Bill.

On Wednesday MPs voted to pass the Bill by just 17 votes - the smallest majority since Tony Blair became prime minister.

Peers then voted by 169 to 101 to scrap a key clause, returning the plans to the Commons for a new vote.

This saw MPs sitting until 0215 GMT, when they voted by 290 to 249 to reinstate the clause, raising the government majority to 41.

The Lords had already thrown out the Bill once this month, by rejecting the clause.

Pressure on

But Health Minister Lord Warner told peers on Wednesday the government was determined to push through the reform.

We fear that for many patients it will reduce the quality of care and undermine the provision of a comprehensive health service Doctors' letter Doctors voice opposition

"No matter how many times this Bill goes back to the Commons, it will come back with this clause and schedule reinstated," he said.

Another flagship piece of legislation, the Criminal Justice Bill, was also being batted between the Lords and Commons but in the end a deal was hammered out between the government and the opposition.