Latest reports have suggested that the Roman Catholic Church will not gain an exemption from the new anti-discrimination laws despite the recent public debate on the ethics of gay adoptions.

|PIC1|The Church has demanded an opt-out from the new measures so that they would not be forced to place children in the care of homosexual people - something that goes against some of the core beliefs of the Church.

Rumours that Tony Blair has "caved in" to Cabinet members who are against an exemption have been described as "ridiculous" by Downing Street, according to a BBC report.

However, Downing Street has suggested agencies may be allowed time to adapt or close.

The highly controversial issue has prompted Prime Minister Tony Blair to call a meeting between Labour MPs and an announcement is expected to be made public next week.

The Equality Act, which will come into effect in England, Wales and Scotland in April, outlaws discrimination in the provision of goods, facilities and services on the basis of sexual orientation.

The law has been touted as a further erosion of traditional Christian values, ethics and beliefs. Catholic leaders say that it simply cannot endorse the measures, as they go against some of the central elements of its faith.

The Church worries in particular that the new law will attempt to force its agencies to act against their beliefs and place children with homosexuals. If this is so and they refuse, they will be closed.

Cardinal Cormac Murphy-O'Connor, head of the Roman Catholics in England and Wales, has denied any suggestions that he is using "blackmail".

In addition, the Church of England's two-most senior members, the Archbishop of Canterbury, Dr Rowan Williams, and the Archbishop of York, Dr John Sentamu, have backed the Catholic Church's position.

Dr Williams and Dr Sentamu this week sent a letter to Prime Minister Tony Blair to argue that "rights of conscience cannot be made subject to legislation, however well-meaning".

Constitutional Affairs Minister Harriet Harman, has said there will be no exemptions to the legislation. In the New Statesman magazine, she said, "We will stay true to our commitment in tackling sexual discrimination in terms of sexual orientation."

However, Communities Secretary Ruth Kelly, a well-known Roman Catholic, is reportedly fighting for an exemption for the Church.