Gay rights supporters have expressed alarm at the inclusion of a free speech clause in a law criminalising homophobic hatred.

Peers in the House of Lords have voted to amend the new Coroners and Justice Act to allow criticism of "sexual conduct and practice".

The Government opposed the move, arguing it could create a loophole in the law relating to the offence of inciting homophobic hatred.

But time ran out to overturn the decision ahead of next week's Queen's Speech.

David Taylor, Labour MP for North West Leicestershire, was a key figure in a campaign, backed by church groups, to retain the clause.

It reads: "For the avoidance of doubt, the discussion or criticism of sexual conduct or practices, or the urging of persons to refrain from or modify such conduct or practices, shall not be taken of itself to be threatening or intended to stir up hatred."

Dennis Bradley, spokesman for the Leicester LGBT Centre, which supports lesbian, gay, bisexual and transgender people, feared it would be used as a defence for bigotry and intimidation.

Mr Taylor welcomed the Lords' decision.

He said: "We do not need to agree with every last word they might say but we should defend to the very last their absolute right to say it."

A Ministry of Justice spokesman said: "The offence only covers words or behaviour that are threatening and intended to stir up hatred.

"It was with considerable disappointment that the Government agreed not to remove the freedom of expression section.

"We will return to this issue."