Victims of online harm and their parents condemned the move to water down the sanctions on tech firms

The prime minister is preparing to soften plans for sanctions on social media companies amid concerns about a backlash from tech giants.

Yesterday ministers shelved a decision on whether social media companies should face fines, criminal prosecution or be blocked from operating in the UK for failing to protect users.

Instead they published an interim response to a consultation and said that a final decision would not be taken until later in the year. They said they were “minded” to appoint Ofcom, the broadcasting regulator, to oversee social media companies.

“There is a very pro-tech lobby in No 10,” a well-placed source said. “They got spooked by some of the coverage around online harms and raised concerns about the reaction of the technology companies.