Ministers fear prison governors would be prosecuted, reports say

The new offence would apply when a person's death is caused by company negligence. The government wants to exclude prisons and police.

The ex-chief inspector of prisons Lord Ramsbotham had argued for no exemption.

The Home Office says it will consult the attorney general about the bill. It could seek to overturn the Lords vote.

'No justification'

The government was defeated by 96 votes.

Lord Ramsbotham had highlighted several cases where people had died in custody, saying that managers at all levels would have taken greater care over their responsibilities if they knew they could face a charge of corporate manslaughter.

The former chief inspector for England and Wales added: "Nothing I have heard or seen from the government so far has convinced me that there is any justification in this exclusion.

"This house has both a duty and an opportunity to prevent something which would not make me feel very proud if I were part of it.

"The statement of purpose of the Prison Service talks about 'it is our duty to treat those committed to our care with humanity'.

"I hope in agreeing with these amendments the house will uphold that purpose and the rule of law demonstrating that we deserve to be called a civilised nation."

Reversal bid

The Home Office initially responded to the Lords defeat by saying: "We have made clear that we do not consider that this is appropriate and will seek to reverse this when the bill returns to the Commons - where there was a substantial majority in favour of exclusion."

It later added that it would consult the attorney general about the next step.

Earlier unconfirmed reports suggested that ministers had threatened to axe the Corporate Manslaughter Bill rather than expose governors to prosecution.

Attorney General Lord Goldsmith had urged peers to reject the amendment.

He said all deaths in custody were already investigated - by public inquiries, inquests and internal inquiries.

Speaking after the Lords vote on Monday, Conservative Lord Hunt, who voted to extend the bill, said Tory MPs will also seek to defeat the government.

"The essential question is whether or not the prison service, and other public bodies detaining individuals in custody, owe a clearly defined, legally enforceable, corporate duty of care to those individuals.

"Of course they do; they must."

The shadow home secretary, David Davis, said the Lords vote was "a victory for common sense and decency in the way we run our government."