Anti-terror Bill to be law by end of year with cross-party support

Mr Clarke said: "We believe that is the right way to go and we believe it will enable us to address the threat we face with a unity and determination which is critical ... The central message from today is the determination by all of us to legislate on counter-terrorism and make progress on the matters we have been discussing."

Before the blasts, the Government had intended to publish its anti-terrorism proposals in the spring with a view to them becoming law next summer.

Mr Clarke won the backing of David Davis, the shadow Home Secretary, and Mark Oaten, the Liberal Democrat home affairs spokesman, after the Home Secretary agreed to a Tory suggestion that a planned debate on the Government's highly contentious "control orders" should be postponed until next year.

Home Office officials will now work through August drawing up the legislation.

Most contentious is a proposal to create an offence of "indirect incitement to commit terrorist acts", intended to cover firebrand preachers who appear to condone violence, but which critics fear could be too widely drawn. In a statement to the Commons tomorrow, Mr Clarke will attempt to allay their fears by giving examples of the sort of people it could affect.

The planned offence of receiving training in terrorist techniques follows fears that thousands of young Britons have been to al-Qa'ida camps in Afgha-nistan. It could also cover people who look at terrorist websites. Criminalising "acts preparatory to terrorism" will include buying the raw materials for a bomb. Legal and human rights watchdogs said they would "scrutinise the legislation with care.

Meanwhile, the Government flatly rejected an influential think-tank report which said Britain's role in the war on Iraq left it more vulnerable to terror attacks.

Downing Street, John Reid, the Defence Secretary, and the Foreign Secretary, Jack Straw, all criticised the dossier from Chatham House - formerly the Royal Institute of International Affairs. Its report said there was "no doubt" the invasion of Iraq caused particular difficulties for the UK and the coalition against terror.

* Two-thirds of Britons believe there is a link between Tony Blair's decision to invade Iraq and the London bombings, according to a Guardian/ICM poll. It discovered33 per cent of people think Mr Blair bears "a lot" of responsibility for the bombings and 31 per cent "a little" responsibility.