Hunting with dogs was last night set to be outlawed after MPs rejected an eleventh hour compromise.

Labour backbencher Huw Irranca-Davies had proposed allowing fox hunting to continue under licence.

But the Ogmore MP's amendment, thought to be favoured by Tony Blair, was thrown out by the Commons. His proposal was voted down by 204 to 321, a majority of 117.

Mr Blair had hoped to reintroduce the Government's original proposal for licensing, but the idea was thrown out by his own side as MPs demanded an outright ban in England and Wales - and said it should happen sooner rather than later.

It means the Hunting Bill could become law as early as today or Thursday, with a ban in force by February.

North-East MPs welcomed the move to end centuries of hunting tradition.

Blaydon MP John McWilliam said: "After 25 years of struggling with this issue, it's time to bring closure to the whole thing. We want to put a complete end to this and use the Parliament Act as soon as we can. Trying to introduce a compromise now is just not good enough."

Ministers had hoped to resurrect their licensing plans to avoid confrontation with the Lords and risk jeopardising other Government Bills still being debated in the final days of this Parliament.

With the Queen's Speech next week, all legislation has to be agreed on by Thursday evening or risk running out of time. Today, the Hunting Bill will be put back before the Lords, where it is expected to be thrown out. That paves the way for the Parliament Act to be used to force it through.

Newcastle's Jim Cousins, an anti-hunt campaigner, urged ministers to introduce a short bill in the Queen's Speech delaying the ban so hunts could find alternative work for staff and other uses for their hounds.

Penrith MP and Tory chief whip David Maclean maintained Mr Blair's attempts to find a compromise were a political ruse, designed to boost the Prime Minister's rating among countryside campaigners before a general election.

Page 2: MP pledges to oppose 'dozens of North casinos'