John Prescott believes he has triumphed in a battle to prevent devolution legislation being derailed by a row over Section 28.

The deputy prime minister has been engaged in a battle with Downing Street aides to prevent repeal of the controversial rules outlawing the "promotion" of homosexuality being included in a local government bill - expected in the Queen's Speech.

Prescott feared that Lords opposition to a move scrapping Section 28 could endanger his flagship legislation to set up regional assemblies.

Some Downing Street aides had urged inclusion of a Section 28 measure to highlight Tory divisions over the issue. Government support for a backbench bill for repeal is now more likely.