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The House of Lords voted against her plans to leave the European Union's single market after Brexit and voted to strip out the fixed timing for Britain to leave the EU in March next year.
"We are disappointed by the votes last night ... the legislation is intended to deliver the smooth Brexit which is in the interests of everybody in the UK," the spokesman said.
"We will not accept attempts to use this legislation to stop us taking back control of our money, our laws and our borders."