British writers expressed their delight last week after Labour lost the Commons vote over the Religious Hatred Bill.

The Muslim Council of Britain however called the outcome "unjust".

There had been constant debate and controversy over the exact wording of the bill, which aimed to cover faith based communities from offence in the same way that many racial communities were.

Muslim and Hindu groups had lobbied for the legal loophole to be closed because the law did not afford them the same protection as Christians (under old blasphemy laws), Jews and Sikhs (both also defined as racial groups).

In a statement, Hari Kunzru, author of Transmission, said: "I was very happy to wake up to this news. The Government's loss is Britain's gain: a bad law has been made as good as possible due to the hard work of campaigners for freedom of expression.

"This defeat should be another signal to the Government that in its disregard for civil liberties, it's losing touch with the mainstream of British opinion."

Writer Hanif Kureishi said: "This is an amazing result and a great achievement for writers and intellectuals when they unite."

Philip Pullman, prize-winning author of His Dark Materials, said: "The Commons vote last night shows how thoughtful argument, skilfully deployed in the service of a good cause, can still beat arrogant short-term political jerry-building. The episode also shows that if we want to guard freedom of expression, we can't relax our vigilance for a minute."

Writer Salman Rushdie said: "There are moments when one is profoundly grateful for, and proud of, British Parliamentary democracy. This is one of them."

In a press release, the English PEN group said it "warmly welcomed" the result. "Last night's result was a triumph for reason and rational argument - and not, as the Government would have it, for a handful of recalcitrant rebels trying to spite the Prime Minister."

The statement added: "The legal loophole which Muslims and others felt did not afford them the same protection as Christians, Sikhs and Jews has now been closed. It will now be criminal to publish posters showing women of many colours in hijabs with the slogan 'Muslims go home' and English PEN welcomes this commitment to our plural society. The intention to incite hatred on religious grounds by using threatening words or images will remain a criminal act."

A statement from the Muslim Council of Britain, one of the principal proponents of the bill, was clearly marked with disappointment.

Secretary-General Sir Iqbal Sacranie said: "The Bill had been intended to close a loophole in the law which meant that while some faith groups, such as Jews and Sikhs were rightfully protected against incitement under our existing racial hatred laws, others were not. Far right groups have availed themselves of this loophole and have been increasingly and explicitly targeting British Muslims in recent years.

"Unfortunately, the misinformation and mischief making from popular comedians and some influential sections of the media, supported by certain political groups, has led Parliament to continue to sanction a wholly unjustifiable hierarchy of rights among British citizens. Freedom of expression and speech was never threatened under the incitement to racial hatred laws nor was it to be threatened under the proposed law.

"This situation is now not only unjust but makes the work of all those engaged in promoting a cohesive and harmonious society in Britain all the more difficult."