The government is considering repealing a controversial law that could have seen universities and student unions fined for failing to uphold freedom of speech on campus.

A Whitehall source branded The Higher Education (Freedom of Speech) Act 2023, which was due to come into force next week, “an antisemites’ charter” that could have lent a platform to extremists.

In a written ministerial statement on Friday, Education Secretary Bridget Phillipson said the act, passed by the previous government, would be put on hold to allow for time to consider options “including its repeal”.

She said she was concerned the legislation could also prove “burdensome” on higher education providers as well as the Office for Students (OfS) watchdog.

The Conservatives introduced the Freedom of Speech Act in a bid to address concerns of “cancel culture” at universities, where certain speakers could find themselves denied a platform over any controversial views they may hold.

The previous government said the act placed more responsibility on universities “to ensure students are able to speak freely in and out of the classroom, while offering more protection for academics who teach material that may offend some students”.

It said the new powers would allow speakers to express views which others may disagree with as long as they did not veer into hate speech or incitement of violence.

Shadow energy secretary Claire Coutinho branded Labour’s decision to pause the legislation “chilling”.

“The Labour Party fought us every step of the way when we legislated to protect freedom of speech in universities,” she said. “This is a taste of what is to come.”

Damian Hinds, the shadow education minister, said Labour’s stance on the act meant universities risked “becoming centres of co-option and intolerance”.

Labour have argued there are already existing laws that protect the right to free speech and that universities will still have a legal duty to uphold the principle under such legislation.

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The Whitehall source said that “instead of getting to grips with the financial challenges facing universities, the Tories chose to pursue a botched culture war and enable hate speech by enacting their antisemites’ charter”.

“This government is determined young people won’t pay the price for Tory incompetence and ensure continued access to our world class universities,” they added.

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In her statement, Ms Phillipson said the OfS, which would have been allowed to fine or sanction institutions under the law, should “more sharply focus” on priorities such as financial stability.

“The government accepts the core analysis of the review and as set out in our manifesto, we recognise that strong regulation is a crucial element for a stable, world-leading higher education sector, that delivers for students and the economy,” she said.

“I have written to colleagues separately about my decision to stop further commencement of the Higher Education (Freedom of Speech) Act 2023, in order to consider options, including its repeal.”

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Downing Street has rejected suggestions that Labour’s review of the law could result in a weakening of free speech at universities.

A Number 10 spokeswoman said: “I disagree with that characterisation, but it is also right to listen to concerns and take stock, and that’s what the department is doing.”

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