The government is pondering its next move after the Lords threw out the government’s proposals for a super casino to be built in Manchester.

The plans, which recommended the city as the site of the UK’s first super casino, were thrown into disarray after the upper house rejected the government's Gambling Order regulations by 123 votes to 120.

The rejection came after the bill narrowly passed through the House of Commons, when 18 Labour MPs voter against the proposals.

Richard Caborn, minister for gambling, said the government would now reflect and decide whether to go forward with the existing plans or to consider alternatives.

The Conservative party’s shadow culture secretary, Hugo Swire, said it would be ‘unthinkable’ for the government to attempt to re-introduce the same proposals.

Earlier, culture secretary Tessa Jowell admitted that there would be no quick ‘plan B’ should the proposals be thrown out at either the house of Commons or by the peers.