The Hillsborough Law is likely to clear its remaining stages in the House of Commons on this week, after ministers previously suggested it would not return to Parliament before MPs leave for the summer.
The law change, officially known as the Public Office (Accountability) Bill, would create a legally-enforceable duty of candour which compels public officials and authorities to act transparently when investigations and inquiries take place.
It takes its name from the Hillsborough disaster in 1989 when 97 Liverpool fans were killed at the football stadium in Sheffield in a crush during an FA Cup semi-final match.
After the disaster, key public servants, including the police, were found to have not told the truth about the decisions taken leading up to the fatal crush at the Leppings Lane end of the ground.
Deputy Prime Minister David Lammy said he was “confident” the draft legislation would be back “in the coming days” at the despatch box last week, but other Government figures suggested it would not return until after the summer recess.
Both Sir Keir Starmer and his likely successor Andy Burnham have expressed support for the law change, but it had been repeatedly delayed over concerns from the security services about how it could impact spies.
The Government now believes it has reached a point where individual employees and ex-employees of the intelligence services will be covered by a duty of candour, without compromising national security.
This will be set out in amendments to the Bill, due to be debated this week.
A Government source said: “This is an overwhelming victory after months of hard work to find a solution that ensures we have a duty of candour that applies to the intelligence services without compromising national security.
“The Hillsborough Law will fundamentally change the balance of power so the state can never hide from the people it is supposed to serve, and so victims can always get justice.”
The latest amendments to the Bill create a process where intelligence employees send information under the duty of candour to the head of their organisation, who would then be responsible for passing it on to public investigators.
The Hillsborough Law Now campaign, which has been campaigning for the law change, welcomed news that the Bill will return to the Commons, and described it as “a major step towards delivering the landmark changes that bereaved families and survivors have fought for over decades to prevent state cover-ups”.
The campaign added: “The Government has now conceded that there will be no carve-outs, no exemptions for security services or anyone else, breaking the impasse that has persisted since January.
“This is an important milestone, not just for Hillsborough families, but for every family who has experienced a cover-up and lack of accountability from public authorities. We are a big step closer to ensuring that no family has to again fight for the truth for decades.
“Once the Bill completes its Commons stages this week, the journey continues in the House of Lords. We will keep working with peers, parliamentarians and families to ensure this legislation reaches the statute book and delivers the change that has been promised for so long.”
Mr Burnham said the Bill’s return to the Commons will be a “special moment to be in the House on Tuesday as the PM delivers on his promise to the Hillsborough families”.
The prime minister-in-waiting added: “We owe the Hillsborough families and all the campaigners our profound thanks for standing firm for what is right and never giving in. Their determination in the face of decades of denial will permanently shift the balance of power in this country in favour of ordinary people and that is a huge thing.
“The rebalancing of power must not end there. We must never forget that an entire English city correctly cried injustice for 20 years but was blanked by the powers-that-be.
“It tells us that not all people and places in this country have been treated as equals. We will not rest until they are and that is why we will now redistribute power to create a more equal Britain.”