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David Cameron, Iain Duncan-Smith
David Cameron, Iain Duncan-SmithReuters, Getty Images

David Cameron is facing the first leadership crisis of this parliament after George Osborne's Budget caused anger among Conservative backbenchers. The discontent over cuts to disability benefits even led to the resignation of Iain Duncan Smith as Work and Pensions Secretary.

The Euosceptic was quickly replaced by former Welsh Secretary Stephen Crabb at the Department for Work and Pensions, but Duncan Smith wreaked havoc on the Chancellor and Cameron when he appeared on TV over the weekend.

The Tory big beast claimed the government had lost its way on welfare reform and argued his decision to leave the cabinet had nothing to do with the EU referendum in June. But Cameron is expected to directly hit back at Duncan Smith in a statement to MPs on 21 March.

The 'quiet man' giving David Cameron a loud headache

The prime minister will reportedly tell the House of Commons that compassionate Conservativism is alive and well in his administration.

However, the defence may fall on deaf ears as some Tories are apparently plotting to vote against the most controversial elements of the Budget on 22 March.

The government have already reportedly revealed that they will not oppose a Labour amendment to the Budget which would see MPs backing scrapping the VAT levy on sanitary products, otherwise known as the 'tampon tax'. Meanwhile, Labour have urged Osborne to quit over his Budget.

IDS is right to resign – I never saw any evidence of a conscience

The Speak of the House of Commons John Bercow has granted Jeremy Corbyn's party an urgent question at 3.30pm (GMT) on Osborne's decision to drop reforms to Personal Independence Payments (PIP) for disabled people. But it is unlikely that chancellor will face John McDonnell in the chamber.

You can watch Cameron's statement to MPs straight afterwards on Sky News, BBC Parliament and Parliament TV. Also make sure to follow @IBTUKPolitics for live updates and commentary.

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17:46

The new Work and Pensions Secretary, Stephen Crabb MP, has now stepped up to the dispatch box to make a statement on welfare. He opens by paying a "huge tribute" to his predecessor Iain Duncan Smith, who he said achieved "incredible things".

He went on to announce the government would not go ahead with changes to Personal Independence Payment (PIP), nor changes announced before the budget. He said there will be no further welfare cuts this parliament.

stephen crabb
New work and pensions secretary Stephen Crabb tells MPs the government has abandoned changes to disability paymentsHouse of Commons

17:39

Political analysts have been giving their verdict on Labour leader Jeremy Corbyn's performance in the Commons this afternoon. Many have accused him of missing an opportunity to pile pressure on Cameron and Osborne.

The New Statesman's political editor George Eaton:

Political and diarist for The Times, Patrick Kidd:

From the Telegraph's Michael Deacon:

From the FT's Sebastian Payne:

17:00

Former Labour leadership hopeful Liz Kendall asks Cameron how he feels after Duncan Smith suggested the government had lost its way on compassionate Conservatism and welfare reform.

The prime minister says he is sad that Duncan Smith has left the government, but says the work of compassionate Conservatism will continue.

16:58

Back to the Turkey-EU deal, DUP MP Ian Paisley suggests visa-free travel across the eurozone could be a security issue for the UK. Cameron claims there is a lot of scaremongering around the settlement.

16:52
Budget 2016 Jeremy Corbyn
BBC

We've just listened to Jeremy Corbyn's speech after Cameron's statement. The Labour leader failed to mention Duncan Smith or the former work and pension secretary's resignation. Has the left-winger missed an open goal?

16:49

Liberal Democrat leader Tim Farron: Will the prime minister show some compassion to the 43,000 people stuck in Greece?

Cameron says it's 'complete nonsense' to suggest that by finding safe routes to Europe, people trafficking would end. Prime minister says the right answer is to have compassion and hard boarders.

Turkish Prime Minister Ahmet Davutoglu
Turkish Prime Minister Ahmet Davutoglu poses with European Commission President Jean-Claude Juncker (L), European Council President Donald Tusk (2nd R) and Netherlands' Prime Minister Mark Rutte (R) during a European Union leaders summit on migration in BrusselsReuters

16:43

SNP leader in the Commons Angus Robertson claims he counted 12 things that the UK government are not going to do in relation to the migration crisis.

Elsewhere, the Moray MP claims people are 'horrified' watching the Tory party dispute over the Budget because more time is being taken over the row, rather than the impact of the welfare reforms.

16:38

Cameron says it's more compassionate to have firm borders, otherwise the government could encourage more migrants to make perilous journeys across the Mediterranean.

Prime minister stresses that the UK will not take migrants from inside the EU and says his plan is part of an EU-wide effort to help tackle the crisis.

Cameron also pays tribute to Paula Sherriff, while saying Osborne will be in the Commons tomorrow. The Conservative leader claims the Budget will strengthen the economy and 'make sure we have a fairer society'.

16:33

Corbyn decides to grill Cameron over the EU-Turkey migration deal. Labour leader says he recognises the work done by the government and military over the crisis, but urges the prime minister to cooperate with every other EU nation to provide an EU-wide response.

The left-winger also praises Labour Paula Sherriff MP over the axing of the 'tampon tax'. Corbyn goes onto ask where Osborne is and warns of an 'enormous hole' in the chancellor's Budget. Labour leader says the economic plan has inequality at its core.

16:27

Cameron praises Duncan Smith and defends his governments's record on welfare reform. Prime minister stresses he has a deeply held conviction of helping people make the most of their lives. A goal which is not possible without the Chancellor George Osborne, Cameron adds.

"We are a modern, compassionate, One Nation government," a fired up prime minister concludes.

16:24

Cameron announces that the EU has agreed to enable the Conservatives to scrap the so called 'tampon tax' by allowing the UK government to axe VAT on sanitary products.

16:22

'We are doing more than any other country in the world other than the United States,' Cameron says of his government and the European migration crisis.

16:21

Cameron claims the Turkey-EU deal is the first to break the 'business model' of the people smugglers around the Mediterranean. Prime minister stresses that the UK, unlike other EU countries, is not giving Turks visa-free travel. Cameron also says Britain will not be taking more refugees due to the deal. Government will be sticking with 20,000 pledge.

David Cameron
BBC

16:17

Cameron is now making his statement on the EU migration crisis. Prime minister says numbers are rising, but says the UK has its own border controls so people cannot travel through the continent to Britain.

16:16

Osborne may not be in the Chamber today, but Cameron is. The prime minister has now made his way to the front of the government benches, alongside Gauke.

16:09

Labour supporter and Durham University academic Thom Brooks is looking for Osborne.

16:03

A very simple question from Labour's Rachel Maskell has scuppered Gauke. The shadow defence minister simply asked when the Budget schedule would be published. The minister reveals the government will not publish the document until the autumn statement.

15:59

Labour MP Ian Lucas jokes: 'Which member of the next generation will succeed the Chancellor?'

Gauke: 'Is that really the best the Honourable Gentleman can do?'

15:49

As the debate over disability cuts continues, check out IBTimes UK's video on Duncan Smith's career.

The rise and fall of Iain Duncan SmithIBTimes UK

15:47

The £4.4bn 'black hole' is the big question from Labour. The main opposition party now wants to know where Osborne will make up for the money by U-turning on disability payment cuts.

15:45
Ken Clarke
Ken Clarke BBC

Former Chancellor Ken Clarke has warned the UK could experience similar economic turmoil as Greece if George Osborne fails to control the Budget and make populist decisions in Number 11.

15:40

McDonnell and Gauke are now locked in debate. The Financial Secretary to the Treasury continues to defend the Budget and says it delivers on the government's 'long-term economic plan', while the shadow chancellor says the Conservatives should scrap the economic measures.