It has to be sent back to the commons for them to agree or disagree with the lords amendments. If the government disagrees it can go to a vote. Otherwise it can be put through without the amendments by government decree of some sort or other.
Not sure what they will do, but as you say it's a way of bringing Labour councils to heel. I heard on the radio today that there was to be an extra bit about the North East in the budget, but he left it out as we had not elected our mayor yet.
Doesn't make any difference, as he's not willing to upgrade the railways, so we are not part of the powerhouse. Someone said on the local news tonight that if you want to see the history of the railways, you just need to travel south to north, and you go back in time.