Controversial proposals that would give Lord Mandelson unprecedented powers to amend censorship laws will be jettisoned next week when the Government suffers the first large defeat of its flagship media plans.
Conservative and Liberal Democrat lords will unite to vote down Clause 17 of the Digital Economy Bill, which has been criticised by internet giants such as Google and Yahoo!, when the Bill is put to vote in its report stage.
The Government maintains that the plans are necessary to future proof the Bill against emerging methods of piracy.
But internet firms and the Opposition said that despite attempts by Lord Mandelson to water down the proposals and increase parliamentary scrutiny of any fast-tracked legislation, via measures such as a 60-day consultation period, the proposals still allowed ministers to impose arbitrary measures.
Jeremy Hunt, the Conservative Shadow Culture Secretary, said his party will vote against the clause next week. He added: The Government has failed to address any of the concerns we raised with them. They still want a wide ranging and unconstitutional power yet can’t tell us what they want to use it for.