Hoteliers who turn away gay and lesbian couples are to be criminalised following a successful campaign by a Brighton MP.
The Government has signalled its support for Des Turner's bid to prohibit sexual orientation discrimination in the service industry, virtually ensuring it will become law.
The move comes after 115 MPs backed a Commons motion, tabled by the MP for Brighton Kemp Town, demanding protection for homosexuals in areas like healthcare and insurance.
Dr Turner said there had been a series of high-level meetings at which MPs and the pressure group Stonewall had to persuade ministers to overrule officials resistant to the move.
He said: "It's a result but we have had to make it quite clear to them they they just had to do it. The Government position up to now on this has been quite unsustainable.
"Happily, the ministers have seen the wisdom of what we are saying and are coming up with the right result."
The Equality Bill, which went before the Lords last night, already contained measures to prohibit sexual discrimination by councils and other public bodies.
In the provision of private goods and services, however, the Bill only outlawed discrimination on religious grounds, while failing to address homophobia.
But ministers have now undertaken to accept an amendment to the Bill which will extend protection in the provision of goods and services to sexual orientation.
The Bill will also tackle councils that are refusing to provide ceremonies for civil partnerships, which come in next month.
Ben Summerskill, of Stonewall, said: "We are delighted the Government appears to be yielding to a strong cross-party feeling that these protections are urgently needed."
Dr Turner's Early Day Motion was backed by fellow city MPs Celia Barlow and David Lepper.
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