MPs have backed measures designed to thwart preparations for a no-deal Brexit, by defeating the government in the House of Commons.
They backed an amendment to the Finance Bill, which would limit spending on no-deal preparations unless authorised by Parliament, by 303 to 296 votes.
A number of Tory MPs are thought to have rebelled.
Treasury minister Robert Jenrick said the "simple truth" remained that the UK would leave the EU on 29 March.
All it would do, he told MPs, would be to make the UK "somewhat less prepared".
The setback for the government came after a day in which senior ministers spoke out about the risks of exiting the EU without any form of withdrawal agreement.
Work and Pensions Secretary Amber Rudd told the cabinet that the public would take a "dim view" of government if it settled for a disorderly Brexit and suggested it would make the UK less safe.
And Business Secretary Greg Clark said such an outcome "could not be contemplated".
just shifts more financial power away from may and to mps who will need to approve her plans and she has a paid for majority anyway.
sounds like more democracy and less dictatorship
not really a defeat is itjust shifts more financial power away from may and to mps who will need to approveher plans and she has a paid for majority anyway.sounds like more democracy and less dictatorship