DUDLEY North MP Ian Austin has reacted furiously on Twitter after a senior Labour figure slammed his decision to abstain over new government spending rules.

Mr Austin was among 21 Labour rebels who failed to back Shadow Chancellor John McDonnell as he railed against opposite number George Osborne's controversial restrictions.

Mr Osborne saw his plan, dubbed a Charter for Budget Responsibility, requiring governments 'in normal times' to spend less than they receive in tax, passed by 320 to 258 votes in the House of Commons last night.

Socialist Mr McDonnell, who originally said he would support a charter, reversed his stance in the lead-up to the vote, claiming the Government plan was nothing more than a cover for spending cuts and an attack on the welfare state.

In the process he upset some moderate Labour MPs, who favour stricter spending curbs.

Mr Austin's abstention drew criticism from senior Sandwell Labour councillor Bob Piper who tweeted: "Very disappointed that tonight, for whatever reason, @IanAustinMP abstained in the vote instead of voting against. Silly games Ian comrade."

The MP retorted: "I spoke in debate & criticised Osborne. I abstained because he is playing a silly game."

Another Labour supporter Catherine Feeny weighed in on Twitter, saying: "With respect, I think you should consider joining the Conservative Party."

Mr Austin replied: "Wld be funny if not so sad. @CatherineFeeny1 says "with respect" I shld leave the party I joined 32 yrs ago & work hard for. "With respect"!"

The former Parliamentary Under Secretary of State in Gordon Brown's government told the News today: “As I said in the debate, George Osborne has missed all of his targets to balance the books, so his Fiscal Charter is a ridiculous stunt and I abstained because it can’t be taken seriously.

“The truth is that a reputation for economic competence only comes from having a clear and consistent approach to tackling waste and spending wisely.

“It’s right to run a surplus when it’s possible to do so, but sometimes there should be room to borrow or invest too. The key point is that these things should be decided on the country’s needs and the state of the economy at the time.”