A controversial new law that could see universities and student unions fined for failing to “secure” freedom of speech could be repealed under Labour, the Education Secretary has announced.

Bridget Phillipson said there were concerns the legislation would be disproportionate and “burdensome” for providers and the Office for Students (OfS) watchdog.

The Higher Education (Freedom of Speech) Act 2023, which was due to come into force next week, will be put on hold to allow for time to consider options “including its repeal”, she said.

In a written ministerial statement on Friday, the Education Secretary said: “I am aware of concerns that the Act would be burdensome on providers and on the OfS, and I will confirm my long-term plans as soon as possible.

“To enable students to thrive in higher education, I welcome the OfS’s plans to introduce strengthened protections for students facing harassment and sexual misconduct, including relating to the use of non-disclosure agreements in such cases by universities and colleges.”

The Act was introduced by the previous Tory government and sought to place a duty to “secure” and promote the importance of” freedom of speech and academic expression

Ms Phillipson has signalled that Labour wants an end to so-called “culture wars” on campuses after a number of high-profile protests – including at Oxford before a talk by academic Kathleen Stock over her views on gender identity.

Higher education institutions will still have a legal duty to uphold freedom of speech under existing legislation.

When the new powers were introduced, the Conservatives said it would allow speakers to express views which others may disagree with as long as they did not cross a threshold into hate speech or incitement of violence.

Critics argued the measures went too far and could lead to further disruption, including by potentially enabling extremists to access campuses.

A review of the OfS by public servant Sir David Behan warned there was a perception that the watchdog is “not sufficiently independent” and recommended its structure be revised.

In her statement, Ms Phillipson said the regulator, which would have been allowed to fine or sanction institutions under the new law, should “more sharply focus” on key priorities such as the financial stability of universities.

“The Government accepts the core analysis of the review and as set out in our manifesto, we recognise that strong regulation is a crucial element for a stable, world-leading higher education sector, that delivers for students and the economy,” she said.

“I have written to colleagues separately about my decision to stop further commencement of the Higher Education (Freedom of Speech) Act 2023, in order to consider options, including its repeal.”

Downing Street rejected suggestions that the move amounted to a weakening of free speech.

Asked by journalists whether the decision was a backslide, a Number 10 spokeswoman said: “I disagree with that characterisation, but it is also right to listen to concerns and take stock, and that’s what the department is doing.”

The Tories accused Labour of displaying a willingness to “sacrifice the next generation on the altar of their own ideological dogma” over the decision but Jewish groups welcomed the move, suggesting the legislation risked opening the door to antisemitism on campuses.

Shadow education secretary Damian Hinds said: “Free speech is a fundamental right, and this must extend to universities.

“Without the ability to freely express views in higher education, these centres of learning risk becoming centres of co-option and intolerance.

“The fact this Labour Government is willing to scrap the measures we put in place to protect these rights makes clear that they are willing to sacrifice the next generation on the altar of their own ideological dogma.”

Phil Rosenberg, president of the Board of Deputies of British Jews, said: “We welcome the Secretary of State’s decision to halt the implementation of the Higher Education (Freedom of Speech) Act, pending consideration of repeal.

“The Union of Jewish Students has been clear that the act, while well-intentioned, risked enabling antisemitic extremists to access university campuses by severely impacting the ability of universities to block their presence – we strongly support UJS’s concerns and reflected this in our Jewish Manifesto for the 2024 General Election.

“This halt will enable the Government to consider how to ensure that freedom of speech is protected without allowing free rein to purveyors of hate speech.”