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Harriet Harman told MPs this morning that the government may rush through emergency legislation to reverse a Supreme Court decision that the freezing of assets belonging to terrorist suspects is illegal.

She told MPs she had not set out Commons business for the week after next because ministers are awaiting a decision on whether the government would be allowed a period of grace in order to try and change the law.

"I'm sorry I was not able to announce anything after Monday for the week after next," she said.

"The reason is this, the Supreme Court made a decision about freezing assets which are suspected of being involved in terrorist activities. As honourable members will know, it's very important indeed that we stop money flowing into organisations which will then be used for terrorist activities, and freezing them is a very important part of the armoury to tackle terrorist activity.

"Now, the Supreme Court has given a judgment that the methods of freezing are out with the law, and therefore we need to address that issue because we're absolutely determined that we should be able to freeze assets but we have to do so in such a way that is compliant with the substantive law.

"We've applied to the court for a stay of implementation of the releasing of frozen assets to allow us to consider whether or not we can bring forward legislation before the assets are unfrozen so that we can put the law in order but not have the assets released to those who we think shouldn't have them..."

The , because the laws under which it was done allowed assets to be frozen on the basis of "reasonable suspicion" did not require a judge to grant the order and didn't give the individuals involved any right to challenge the decision.

But the Court still acknowledged the fundamental right of the UK to freeze assets of terrorists and their affiliates.

I still have not spotted any ruling from the Supremes on whether ministers will get the period of grace they're seeking - although "observers" expect them to agree to that. And if they do, we can expect a short emergency bill to be rushed through Parliament, probably before MPs depart for their half-term break.

PS In a separate ruling, .

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