MPs and peers are to review controversial anti-terror powers fast-tracked through parliament in the aftermath of September 11's terror attacks on the US.

The evaluation and rethink was one of a number of concessions made by David Blunkett in a bid to get the sweeping raft of measures through parliament and end Westminster deadlock as time was running out before the Christmas recess.

The home secretary on Friday announced the appointment of an all-party committee of nine privy counsellors who will review the Anti-Terrorism, Crime and Security Act 2001's operation.

"The Anti-terrorism, Crime and Security Act is helping protect our way of life against those who seek to destroy it; law enforcement authorities have already utilised measures in the Act to tackle and deter terrorism in all its forms," he said.

"I made clear to parliament during the passage of the act that effective independent scrutiny is an important part of its working effectively. The review committee will provide independent parliamentary oversight of the operation of the act."

Chaired by Lord Newton of Braintree, the committee will report by December 14 2003, within two years of the legislation coming into effect.

"This act, passed after the World Trade Centre attack last year, contains very significant powers. People both inside and outside parliament need to be confident they strike a proper balance and are appropriately used," said Lord Newton.

"Reviewing it, and making proposals for the future is an important task."

Controversial measures that will be carefully scrutinised include the internment of terror suspects, powers to monitor or freeze bank accounts, the sharing of personal information between government agencies and the implementation of EU-agreed crime laws via secondary legislation.

Review committee members

Lord Newton of Braintree.

Chris Smith, MP.

Joyce Quin, MP.

Sir Brian Mawhinney, MP.

Alan Beith, MP.

Terry Davis, MP.

Baroness Hayman.

Lord Holme of Cheltenham.

Lord Browne-Wilkinson.