The Government was accused of planning the "abolition of Parliament" with legislation giving Ministers sweeping powers to change the law.
MPs and the media "took their eye off the ball" and failed to spot the threat to democracy, according to Midland MP Mark Fisher (Lab Stoke Central).
He was speaking in a debate on the Legislative and Regulatory Reform Bill, which has passed through Parliament with little fanfare.
The Government says it will give Ministers new powers to tackle red tape. But opposition parties and critics on the
Labour benches have warned it will give Ministers sweeping powers to amend legislation without proper Parliamentary scrutiny.
Mr Fisher said: "The Government have got into a terrible mess with the Bill."
He said the Bill had "dangers" despite being watered down by the Government.
It would still allow
Ministers to reduce or abolish taxes without consulting the full House of Commons, he said, or to scrap legislation such as the ban on fox hunting.
He said: "Everyone wanted a Bill on deregulation. What they were given was a Bill that went very much wider than that, and did so in dangerous ways.
"The 'abolition of
Parliament' was not a loose phrase. We could have packed up and gone home with the removal of almost all our functions, yet neither the press nor the House was up in arms in the way that they should have been."
Wolverhampton MP Pat McFadden (Lab Wolverhampton South East) has been tasked with seeing the Bill
through Parliament in his new role as a Cabinet Office Minister.
He tried to reassure Mr Clarke and other critics, saying: "The Bill makes very clear that orders affecting taxation could not be raised in this way." ..SUPL: