New regulations will prohibit businesses from turning away or denying service to consumers on the basis of their sexuality, the government has announced.

Amendments to the Equality Bill, which were previously restricted to banning businesses from discriminating against its employees, will extend the rules to prevent firms from refusing to provide goods and services to gays, lesbians and bisexuals.

This would mean pubs and restaurants, for example, would be unable to bar homosexual people from their premises, while gay bars would also be breaking the law if they turned away heterosexual customers.

Ministers said the changes, first tabled by Lord Alli and Lord Lester, have been introduced because the original language of the bill did not go far enough.

"Lesbian, gay and bisexual people can still face unacceptable discrimination in their everyday lives - for example, being turned away from hotels or getting a raw deal from medical or other service providers," said trade and industry secretary Alan Johnson.

"That's simply not fair, and we're putting it right."

In addition to outlawing discrimination in the workplace, the bill - which had its third reading in the House of Lords yesterday - will create a Commission for Equality and Human Rights (CEHR) and obligate public authorities equality between both genders and people of all sexuality.

Johnson said the scope of the regulations will be subject to full public consultation.