I think it's good news. I think the government originally imagined this would be a nice, feel good piece of socially liberal legislation, like same sex marriage, that would give everyone a warm glow and attract the youth vote.
They've realised it's more complicated to that. I'm sure much of that is down to the fantastic efforts of Janice Turner, who was the first to raise it in the national press. Obviously it's since been taken up by others, the latest being Leo McKinstry in the Express (www.express.co.uk/comment/columnists/leo-mckinstry/895046/transgender-madness-2017-year-insanity). I normally regard McKinstry as being a pretty nasty right-wing journalist, but there you go - the left have been very reluctant to stand up for women's rights, unfortunately. And obviously from the point of view of a Tory government, the last thing they want is to be deserted by their natural supporters.
The number of women who have written to their MP to raise this as an issue has also no doubt helped - so a pat on the back to everyone who has done this. Even if you had a pathetic fobbing off letter from your MP (as I did), they'll now be aware that it's an issue that constituents are worried about, and that will make them nervous.