Lords pass modified Terror Bill

Police and security services today gained new powers to round up suspected terrorists as emergency government legislation made it on to the statute book.

The Anti-Terrorism, Crime and Security Bill received royal assent today after peers finally dropped their opposition in the small hours.

It allows British authorities to hold UK-based foreign nationals without trial if they are suspected of terrorist offences. The powers are expected to be enforced without delay so that around a dozen suspects can be detained.

David Blunkett, who had already made a series of concessions, announced three more U-turns to get the package through. In his biggest climbdown, the Home Secretary-dropped plans to outlaw the incitement of religious hatred.

Peers defeated the clause for a second time, voting against it by 234 votes to 121 last night. Mr Blunkett conceded defeat and compared himself to the Grand Old Duke of York, saying: "I have marched myself up to the top of the hill and I am about to march myself down again."

The Government also offered to limit new powers for the police and security services to look through confidential records, after another defeat in the Lords.

A Privy Council committee will review the legislation within two years. In a third concession, dubbed a "sunset guarantee", any areas of the new legislation which are criticised by the committee will cease to be law unless reaffirmed by Parliament.

Shadow home secretary Oliver Letwin claimed a victory, saying: "We backed the need for emergency legislation throughout, but we were deeply concerned about those aspects of the Bill which bore little or no relation to the terrorist crisis and which undermined fundamental civil liberties." Ministers had been expected to bring back the religious hatred clause as a separate piece of legislation, but today the Home Office said that it had no immediate plans to do so.

Comment: Wisdom of the Lords