Row goes on over terror Bill defeat

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Home Secretary Jacqui Smith announced the climbdown in an emergency statement to MPs shortly after the proposal was thrown out by a massive majority of 191 in the upper chamber.

Her proposal that it would instead be the subject of a separate Bill to be put to Parliament if needed in an emergency was dismissed by opponents as a figleaf.

And Labour critics warned that any such attempt to revive it was doomed to failure.

Speculation had been rife that the measure, which previously scraped through the Commons by just nine votes thanks to backing by the Democratic Unionist MPs, would be dumped by the Government.

Ministers will hope the presentation of the new Bill will give them a degree of political cover as they walk away from what was a major plank of their counter-terror policy.

They were left with little choice but to ditch the plans when faced with the prospect of a bruising return to the Commons.

Opposition in the Lords was spearheaded by senior figures including two former MI5 directors, two ex-Lord Chancellors, a former chief constable and former attorney general Lord Goldsmith.

Ms Smith, who claimed the support of leading anti-terror police officers, accused opponents of ignoring the threat of terrorism facing the country.

With Gordon Brown sitting beside her, Ms Smith said: "I do not believe, as some honourable members clearly do, that it is enough to simply cross our fingers and hope for the best."