The government has been defeated on controversial plans to establish foundation hospitals.

Peers voted against the plans by 150 votes to 100.

MPs have already expressed their doubts about the move.

Earlier this year a Commons vote on removing the clauses relating to foundation trusts saw 62 Labour MPs rebel against the party line.

The government passed the measure, but its majority was cut from 164 to 35.

Now the House of Lords has followed the lead of the lower chamber and rejected the Health and Social Bill.

It will now return to the Commons before the parliamentary session ends in two weeks' time.

Conservative health spokesman Earl Howe warned that ministers had "failed to answer our concerns on foundation hospitals".

He said that the plans will not deliver genuine freedom to hospitals, could damage non-foundation hospitals and could prove "costly and ineffective".

"The Commons should have the chance to review the plans again," Earl Howe said ahead of the vote.

"Ideally, the government should take more time to get the policy right, if need be in a revised Bill next session."

He said the opposition would call for the proposals to be sent back to the Commons, where the government could face another difficult vote on the issue.

Lord Strathclyde, leader of the opposition in the Lords, said the party's approach to the legislation was "fully responsible".

"The House of Lords has noted the scale of unease in the House of Commons and we believe the issue should be looked at again. That is a proper role for a revising chamber," he said last night.