The Government has suffered an humiliating Commons defeat over plans to extend Sunday trading hours after Tory rebels joined forces with Labour and the SNP.
Despite David Cameron holding last-ditch talks with backbenchers and a failed attempt to table a compromise amendment, the key vote was lost comfortably by 317 to 286 - a majority of 31.
Shadow business secretary Angela Eagle said the Government should now abandon "tawdry attempts" to force the plans through parliament.
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But communities minister Brandon Lewis accused the SNP of hypocrisy, as similar measures are already in place in Scotland.
"Majority in English and Welsh MPs for Sunday Trading," he posted on Twitter. "SNP stop rest of country have freedom Scotland has."