The prime minister's spokesman said he accepted the criticism from MPs and peers of the draft Communications Data Bill and would re-write it. Deputy PM Nick Clegg had threatened to block it unless there was a "rethink".
No 10 said bringing in new powers was a "government commitment" and everyone was "committed to fixing this problem". He said: "We recognise this is a difficult issue. We will take account of what the committee said."
The deputy prime minister had earlier said he would block the draft Communications Data Bill and push for plans ensuring "the balance between security and liberty". His comments came as a committee of MPs and peers criticised the bill's scope.
Civil liberties campaigners have described the proposals as a "snoopers' charter", but Home Secretary Theresa May insists they are vital for countering paedophiles, extremists and fraudsters. The Conservative and Liberal Democrat leaderships agree on the need for new measures, but they disagree over their scope.
Source: BBC News