The House of Lords voted 335 to 244 in favor of a "meaningful vote" amendment to May's Brexit blueprint that could allow Parliament to send ministers back to the negotiating table in Brussels or even halt the Brexit process if it disapproved of the final deal.
Labour said the new clause to the European Union withdrawal bill would in effect prevent Britain crashing out of the European Union with no deal and would give Tory remainers the confidence to vote against a damaging deal.
Ministers said they were concerned that the amendments risked tying the government's hands behind its back in negotiations with Brussels at discussions during its weekly meeting, Downing Street said.
"The Prime Minister said that when the bill returns to the House of Commons, the Government would be robust".
Asked about the Lords vote, the Prime Minister's official spokesman said: "There is a role for it to play in providing scrutiny, but the British public have voted to leave the European Union and Parliament needs to get on and deliver that".
"Now we have the unelected house actually trying to block the democratic will of the British people", Fox told Sky News, adding: "This is a question about whether the will of the British people will be respected or not, and it must be".
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The UK and European Union have agreed there will be no hardening of the Irish border but are at odds on how to achieve that.
He added: "In a parliamentary democracy, this is what ought to be meant by a meaningful vote".
He said: "If we were in a customs union with the European Union we would have to accept what the EU negotiated in terms of market access to the United Kingdom without the United Kingdom having a voice".
Fellow Tory Heidi Allen said the Lords were "merely reflecting what the majority of MPs believe - that Parliament must have a say in whether the deal is good enough", and a no-deal scenario "never will be".
Shadow Brexit secretary Sir Keir Starmer urged the Prime Minister to accept the cross-party amendment, warning that there was "no majority in Parliament for a no-deal Brexit". Labour sources said he would be hauled before Labour's leader in the Lords and chief whip, but the Conservatives called for him to be sacked.