Wednesday May 14, 12:16 AM
UK govt to reveal plans for home buyers, banking regulation reforms
LONDON (Thomson Financial) - Plans to help first-time home buyers and measures to reform the regulation of banks will be unveiled today by Prime Minister Gordon Brown as part of the government's draft legislative programme.
The planned laws, which the government will consult on ahead of the Queen's Speech later this year, are also expected to cover areas such as policies on family-friendly working hours and education.
Brown desperately needs a boost to get his agenda back on track as a lengthy list of woes threatens to swamp his leadership.
He has had to endure crushing defeats in the local and London Mayoral elections, a potentially devastating defeat in a crucial by-election in Crewe next week, a backbench rebellion over the abolition of the 10 pence tax rate, damaging revelations in a string of political memoirs, plunging popularity in the polls and increasing domestic anger over rising food and fuel prices.
Brown yesterday took the first step and moved to head off the 10 pence tax revolt by announcing the government would borrow 2.7 billion pounds to fund a one-off tax cut for poor people.
However, it remains unclear what happens the year after, with Treasury aides saying only that they will 'look' at the issue.
Downing Street said last night that the key themes of the draft programme would be to 'create greater economic prosperity and deliver a fairer Britain'.
'The announcements will show that the government is on the side of the British people, supporting them as they deal with the immediate economic uncertainty and as we prepare Britain for the future,' according to remarks released by Brown's office.
The proposal on housing was inadvertently revealed by Housing Minister Caroline Flint, who carelessly exposed briefing notes to photographers on her way into Downing Street for yesterday's weekly Cabinet meeting.
The notes state the government believes house prices 'at best' are set to fall by up to 10 percent this year, with housebuilding 'stalling'.
Reform of banking regulation follows the near collapse last year of Northern Rock (LSE: GB0001452795.L - news) bank, which was caught in the fallout of the sub-prime lending crisis and ultimately had to be taken into public ownership to keep it afloat.
Other areas to feature in the draft programme include reforms to education, training, skills and welfare and 'more personalised public services' in health, schools and policing that are 'tailored around people's needs', Downing Street said.
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