The House of Lords rejected proposals that would give councils the power to require all new faith schools in their area to fill a quarter of all their places with students belonging to other religions.

Tory former Education Secretary Lord Baker of Dorking's third reading amendment to the Education and Inspections Bill was rejected by 119 to 37, a government majority of 82, after a 95 minute debate Monday night, reports The Press Association.

The amendment was modelled on an unpublished government proposal, which was then withdrawn by Education Secretary Alan Johnson after strong lobbying by the Roman Catholic Church which agreed to voluntarily meet a 25 per cent quota.

The move met with anger from Lord Baker who called it "a complete surrender by the government", and he argued that his amendment would assist community cohesion.

But Tory education spokesman Baroness Buscombe countered: "The amendment would drive a coach and horses through the principle of schools' freedom and parental choice that we have supported so strongly throughout this Bill."