Labour has lost chance to regain trust on economy after fiscal U-turn, MPs warn

MPs say shadow chancellor John McDonnell's handling of fiscal charter issue has damaged party's credibility, but most will back decision to oppose it

Labour has forfeited the chance to regain voters' trust on the economy after its U-turn over the government's fiscal charter, the party's MPs have warned the day of a Commons vote.

The vote on Wednesday evening is likely to see a small group of Labour MPs abstaining, the first revolt of Jeremy Corbyn's leadership, but most will back the decision to oppose a charter they believe would excessively tie the hand of a future Labour government.

Related: John McDonnell admits U-turn on fiscal charter vote might confuse Labour MPs