"Ministers have shelved plans to exempt MPs' expenses details from the Freedom of Information Act, after the Tories and Lib Dems said they would fight it.
Prime Minister Gordon Brown said the government had thought it had cross-party agreement but would now "continue to consult on the matter".
Campaigners said it was a victory for "people power" after a web protest.
The Conservatives accused ministers of a "U-turn" while the Lib Dems said it was a "humiliating climbdown".
If a "web protest" can force a climbdown on the FOI exemption, could we try to start one to get Gordon Brown to resign before he destroys the whole of the UK economy?
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