The Government has given up trying to evict Redditch peace protester Brian Haw from his demonstration outside the House of Commons, a Minister has admitted.
Attempts to take Mr Haw to court - and even pass a special law designed to get rid of him - have failed, Home Office Minister Lord West said. Mr Haw will be allowed to remain camped on a roundabout opposite the House of Commons, which he shares with a statue of Winston Churchill.
However, Lord West said he was concerned that Mr Haw was unfairly monopolising the roundabout, preventing other protesters from having their turn.
The campaigner, a carpenter from Redditch, Worcestershire, began his protest in 2001.
He lives in a tent on the roundabout, which links the Houses of Parliament, Westminster Abbey and Whitehall.
He has focused on opposing the invasion of Iraq since it took place in 2003.
MPs, along with House of Commons staff, have become angry at his use of a loudhailer to shout slogans at them.
Mr Haw's voice can be heard inside MPs' Commons offices, although words are often too muffled to be understood.
In 2005, Parliament passed the Serious Organised Crime and Police Act, which outlawed protests within half a mile of Parliament.
This was widely seen as a law created especially to get rid of Mr Haw.
However, a court then ruled that it should only apply to new protests, not someone who was already there - and that Mr Haw could stay.
Speaking in the House of Lords, Lord West said a recent Government green paper had indicated a change of emphasis towards allowing demonstrations.
He said: "What came out was that the basis of all our consultation has been to ensure that people's right to protest is not subject to unnecessary restrictions and with a presumption in favour of freedom of expression. That is absolutely right within the bounds of security and safety."
Lord West added: " I do not think any of us would like to have people camped on the pavement outside our houses and demonstrating, wherever we happen to live. It is an issue, but the way that it has been addressed is not the way to address it, which is why we need to make changes."