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Police are to get powers to force internet firms to hand over details that could help identify suspected terrorists and paedophiles.
The Anti-Terrorism and Security Bill will oblige internet service providers (ISPs) to retain information linking Internet Protocol (IP) addresses to individual users.
Home Secretary Theresa May said the measure would boost national security.
She said: "The Bill provides the opportunity to resolve the very real problems that exist around IP resolution and is a step in the right direction towards bridging the overall communications data capability gap.
"It is a matter of national security and we must keep on making the case for the Communications Data Bill until we get the changes we need."
However, the Lib Dems insisted that legislation - branded the "Snooper's Charter" - was "dead and buried".
Tougher penalties for those convicted of online 'trolling' were announced by a government minister at the end of September.
The changes set out by Justice Secretary Chris Grayling in today's Mail on Sunday have been long-standing government policy, with Justice minister Lord Faulks confirming this in a speech on September 25th.
The proposals are the work of Tory backbencher Angie Bray, who tabled an amendment to the Criminal Justice Bill in March.
The new welcome stress on changes to the law to tackle cyber bullies comes from my amendment to the criminal justice bill re malicious comms
Internet 'trolls' could face a maximum sentence of two years in jail under tougher new legislation.
The amendment to the Criminal Justice Bill would mean the most serious cases could be tried in the Crown Court, where sentences could be four times the current maximum of six months.
But a Labour MP who has been a victim of trolling told ITV News the police should be making better use of existing laws to crack down on abuse and harassment.
ITV News Correspondent Ronke Phillips reports.