Controversial new powers for universities and student unions to be fined for failing to uphold freedom of speech have been put on hold by the government.

Education Secretary Bridget Phillipson said that would allow time to consider whether the law, which was due to come into force next week, would be repealed.

In the statement to parliament, Ms Phillipson also said the Office for Students (Ofs) should be “more sharply focused” on the financial stability of universities.

A review of the regulator by Sir David Behan, recommends that the government should revise the structure of the Ofs to stop perceptions that it is “not sufficiently independent”.

Sir David has been announced as interim chairman, following the resignation of the conservative peer Lord Wharton last week.

The Higher Education Freedom of Speech Act, which was passed last year, said universities had a duty to “secure” and “promote the importance of” freedom of speech and academic expression.

It would have allowed the Ofs to fine or give sanctions to higher education providers and student unions in England from next week.

It also included a new complaints scheme for students, staff and visiting speakers, who could seek compensation if they suffer from a breach of a university’s free- speech obligations.

Bridget Phillipson told the BBC on Monday that culture wars on university campuses “end here”.

A government source told the BBC the legislation would have opened the way for Holocaust deniers to be allowed on campus, and was an “anti semitic charter”.

Under pre-existing legislation, universities will still have a legal duty to uphold freedom of speech.