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@de_Selby
One suspects that a lot of rank and file Conservative members had made it clear that they wouldn't support it. A volte-face looks (marginally) less bad than losing a vote on such a clear-cut issue (cf 'Nasty Party'); the whips probably made it clear to No 10 that they could lose a vote tonight.
However caving in will only strengthen the backbenchers' hand in opposing whatever vileness is to follow. It was indeed 'multi-levelled dumb' to have dug in over this one.