A free speech law designed to prevent universities from cancelling controversial speakers has been watered down, The Telegraph can reveal.

The Government has made concessions to universities over new powers it had drawn up to enable academics and students to sue institutions for breaching their free speech rights.

It has tabled amendments that would require academics and students to only seek compensation in the courts as a last resort, after first pursuing complaints through the procedures of the relevant university and the higher education regulator.

Claimants would also have to prove they had suffered a loss.

It follows lobbying by Tory peers, who argued that the law would cause universities to face huge costs. However, others in the party are furious at the perceived weakening of the support for free speech.

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