The government is today set for a humiliating climbdown on its anti-terror legislation following a fresh string of defeats in the House of Lords.

Peers voted last night to make the controversial legislation subject to a sunset clause - coming into effect in November.

The legislation needs to be on the statute book by the end of this week - raising the likelihood of a serious rethink by ministers rather than a wholesale abandonment of the legislation.

Speaking after the vote, Hazel Blears, the Home Office minister, said that the government had already made significant moves.

"We are determined over the next 24 hours or so to do everything we can to make sure we get the legislation to protect national security and that also is within the rule of law and compatible with the European convention," she said.

The Conservatives say the prime minister can have his bill if it is time limited - otherwise the party insists it will be the government's fault that there is no legislation on the statute book by Friday's deadline.

Michael Howard, the Conservative leader, said: "He could have his bill with a time limit which would make sure that parliament had the opportunity properly to discuss it or he could continue with the existing legislation."