The government has lost its right to fine lorry drivers who are caught with illegal immigrants among their cargo.

Lawyers won a temporary reprieve at the Court of Appeal on Friday against the policy of forcing drivers to pay £2000 if they are found to have brought illegal stowaways into Britain.

Judges ruled the law was in breach of the European Convention on Human Rights.

It is not yet the end of the road for the policy as the court has allowed ministers to appeal under European Community law on free movement of goods.

The case will now go to the House of Lords for a final ruling.

Lawyers representing 50 lorry drivers and hauliers described the result as "a big victory for the haulage industry" and warned if the government loses its appeal they would seek compensation.

Solicitor Jane George said: "Many of the clients we have represented during the last two years have been immensely worried by the operation of this scheme and to have those concerns recognised and understood by the Court of Appeal will come as a tremendous relief to them," she said.

"The essential unfairness of this regime has again been recognised by a court and it is now to be hoped that the government will accept that the legislation should be removed from the statute books."