Deputy Prime Minister Nick Clegg said:
"The first duty of any government is to keep the public safe and the committee that's looked at the Home Office proposals say there is a problem and we need to do something about it. I agree with them.
"But we equally have a duty to make sure that we do that in a way which doesn't lead to unnecessary or excessive snooping on people's emails and telephone calls.
"The committee has said the proposals as they're presently drafted are over the top in important respects, not workable in other respects and possibly very expensive for British taxpayers.
"That's why we now need a fundamental rethink, go back to the drawing board and come back with proposals where we get the balance right."
More top news
The 12th series of X Factor kicks off on ITV this Saturday but which previous winners went on to make it big?
A mother and her four young children who are feared to be travelling to Syria are being sought by police.
Hangovers cannot be prevented, even by drinking water or eating after boozing, scientists have concluded.