Ministers engineered a partial climbdown over plans to reform Britain’s libel laws last night amid claims that they are strangling free speech.
The Ministry of Justice said it would listen to complaints that the plans will allow big companies to silence their critics.
MPs rejected plans passed by the House of Lords which would have made it impossible for a company to sue unless they could show that they have suffered significant financial loss.
But Justice Minister Helen Grant last night offered to look again at the issue of financial losses - hinting that the government would bring in a fresh amendment in the House of Lords next week to strengthen the safeguards.
She said: ‘I am aware of the strength of the feeling that exists on this particular issue and whether or not there should be specific provision in the Bill requiring non-natural persons, trading for profit, to show substantial financial loss.
‘Such bodies are likely in practise to show some actual or likely financial loss anyway.
'But I can confirm that we are prepared to actively consider that aspect of the amendment further and we will of course listen very carefully to the views expressed in both houses.’
But ministers refused to give ground on another measure that critics say will gag the critics of big business.
MPs voted by own plans which would have made it impossible for companies working for the government to sue. It is already illegal for Whitehall departments and councils to sue.
That means that firms who perform government contracts or fun facilities like prisons can use the law to stifle criticism of their use of public money.
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The Conservative move to ban companies who do public work from suing was backed by the Liberal Democrats despite the fact the party specifically supported the reforms in its manifesto.
Miss Grant said: ‘Although the provision focuses on criticisms in connection with the exercise of public functions, that criticism could of course have a wider impact on the reputations of a business more generally.’
Shadow Justice Secretary Sadiq Khan warning that move could 'chill free speech' because people would feel threatened by the financial muscle of big businesses.
Shadow Justice Secretary Sadiq Khan warning that move could 'chill free speech' because people would feel threatened by the financial muscle of big businesses
'Our objective is to reduce the chances of a corporation using its might as an intimidation tactic against free speech.
'But we also believe that, just as local and central government, and their agencies, can’t take defamation proceedings against individuals, then private companies delivering public services should be similarly restricted.
'Just because a school, prison or hospital is run by a private company doesn’t mean it should be insulated from public criticism.'Sile Lane, of Sense About Science, which had also demanded changes, said: ‘We still need to see a hurdle for corporations to prevent bullying and a level playing field for those criticising public service providers. We hope that the Lords will insist on this next week.’