Isabel Hardman

I've just returned from the morning lobby briefing, where the Prime Minister's official spokesman was grilled on the unfolding G4S debacle. He rather surprised journalists by claiming 'the story is a good one' on the Olympics because all the venues have been delivered on time and the Government had thought to put contingency plans in place on this matter, which it can now use given G4S' failure to recruit sufficient numbers of security staff. 'There are going to be millions of additional visitors to London over the next few weeks and people will notice the difference, but we have plans to deal with those challenges and we have contingency plans for all of these things.

The coalition is doing pretty well, thank you very much. In case last week's rebellion of the 91 on Lords reform and continuing tensions over Europe had you fooled, up pops the Prime Minister this morning with a soothing comment piece in the Sunday Times.  David Cameron tries to shrug off Lords reform within three paragraphs of his op-ed. 'What's far more significant is that we are working together on so much else - and after last week, it's vital that everyone reminds themselves of that fact,' he argues. As part of his health-check piece, the Prime Minister details signs that the coalition is functioning well. When he mentions the reforms the two parties are working together, the piece is very carefully worded. He starts with investment in infrastructure.

G4S' security arrangements for the Olympic games are turning into the story that keeps on giving, which is a good thing for journalists only, given the opening ceremony is just weeks away. The headlines this morning aren't just about the 'Olympic chaos' that Theresa May tried to address when she made a statement to the Commons yesterday, but contain more revelations: staff failing to notice dummy explosives during test exercises, 18 and 19-year-old 'yobs' being recruited to fill the spaces, and the firm not being penalised for failing to recruit enough staff. That last revelation is awkward for May, as she implied yesterday that there was a chance G4S could face penalties.

Tory MPs clamouring for a new relationship between Britain and Europe were given an amuse-bouche today when William Hague announced a review into the impact of the EU on everyday life. The Foreign Secretary told the House of Commons earlier that the review, which will report towards the end of 2014, 'will present the evidence and analysis', adding that it would be 'for political parties to decide on their own policy recommendations'. The Foreign Office is briefing that the audit was not about identifying powers to grasp back from the EU, but many in the Conservative party certainly hope it's the start of that process if nothing else.

'Shouldn't we just go home?' the SNP's Pete Wishart asked Sir George Young this evening after the Leader of the House revealed the government was dropping its programme motion on the House of Lords. 'You know it's all over. They know it's all over,' he added. But they didn't go home, and the Commons has just voted in favour of the second reading 462 votes to 162. Early reports suggest that there were 86 Conservative MPs who defied the whip, which would make this the biggest rebellion in this parliament. Nick Clegg paused from trying very hard not to grimace on the front bench to cheer as Mark Harper told the chamber shortly before the division that this legislation belonged to the coalition. But the speeches from MPs throughout the evening gave a very different message.

When Ed Miliband gave his speech to Labour's autumn conference last year, he rather tied himself in knots about how to end predatory capitalism. The Labour leader was trying to make it clear that he would stand up to vested interests, but the message was lost under a row about whether he was pro- or anti-business. Today Miliband managed to put that speech into context a little more, by announcing Labour's plans to change the culture of banking in this country. Instead of predator banks, he wants 'stewardship banking', which builds 'a long-term, trusted relationship with their customer' and serves the real economy as well as the industry itself.