Watch George Osborne being told his chances of being PM have ‘gone up in smoke’

George Osborne’s chances of becoming Prime Minister have “just gone up in a puff of ermine-clad smoke”, the SNP has claimed.

Stuart Hosie, the party’s deputy leader, goaded the Chancellor in the wake of the defeat of his tax credit cuts plan in the House of Lords.

Peers voted on Monday night to to delay the tax cuts by three years unless safeguards were put in to protect low-income families.

The defeat of the Government is seen as a blow for Mr Osborne, who is the bookies’ favourite to succeed David Cameron when the Prime Minister stands down at the next general election.