New Labour terror defeat in Lords

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The government has suffered another defeat in the House of Lords over its counter-terrorism proposals, this time over the use of intercept evidence.

Opposition peers united to pass an amendment calling on judges sitting as coroners to have access to sensitive evidence such as tapped phone calls.

The disclosure, at inquests, of details obtained via surveillance could hinder investigatory methods, ministers said.

Previous defeats came over DNA samples and detention of terrorist suspects.

'Big difference'

Ministers were forced to abandon controversial plans to increase the length of time suspected terrorists could be held without being charged from 28 to 42 days after a heavy defeat in the Lords.

It is unclear what impact the latest defeat over the type of evidence admissible at inquests will have as the amendment may be overturned when the bill returns to the Commons.

This small change can make a big difference to how we handle sensitive evidence at inquests in future Baroness Miller

But the BBC's David Wilby said it could speed up several inquests, including that of Azelle Rodney who died after his car was stopped by armed police conducting a surveillance operation in 2005.

The case was referred to the Crown Prosecution Service but no charges were brought against the Metropolitan Police.

A coroner said he could not hold a lawful inquest because of secret evidence which could not be made public.

Lib Dem peer Baroness Miller said the amendment would enable Azelle Rodney's family and the relatives of those involved in similar incidents to get answers on why their loved ones had died.

"This small change can make a big difference to how we handle sensitive evidence at inquests in future," she said.

"It will now be down to judges to decide how it is handled, not the police."