Plans to turn a Mid Sussex hospital into a "supertrust" were in jeopardy today after a humiliating Government defeat in the Lords.

Labour rebels were confident of winning enough support to kill the foundation hospital policy when it returns to the Commons on November 18 after peers voted it down by 150 to 100.

Labour's majority was only 35, the lowest of Tony Blair's premiership, when MPs last debated the controversial proposal in July.

That means it would take fewer than 20 Labour MPs to switch sides and join the rebels to defeat the flagship Health and Social Care Bill.

David Hinchliffe, chairman of the Commons health select committee and a leading rebel, said: "I have spoken to a number of MPs who are changing their votes from last time and now oppose this. I'm hopeful we will be able to carry the day."

Queen Victoria Hospital, in East Grinstead, applied for greater freedom from Whitehall control after scoring top marks in performance tables.

Health Secretary John Reid today insisted he would do everything possible to overturn the Lords defeat, which he dismissed as a Tory "wrecking" amendment.