Wednesday May 14, 01:28 PM
UK govt reveals plans to help home buyers, improve banking regulation UPDATE
(Adds details)
LONDON (Thomson Financial) - Detailed plans to help first-time home buyers and improve regulation of the banking system have been unveiled by Prime Minister Gordon Brown in the government's draft legislative programme.
The Banking Reform Bill is designed set up to reform regulation in the wake of the near-collapse of Northern Rock (LSE: GB0001452795.L - news) bank, which caused the first run on a British bank in 150 years.
It will allow the Treasury, Financial Services Authority and Bank of England to intervene when a bank gets into trouble. There are also powers to allow the BoE to secretly inject cash into the system.
Brown told the House of Commons that a 200 million pound fund will be set up to buy back unsold new housing stock so it can be rented back to social tenants. A further 100 million pounds is going towards shared equity schemes to help first-time buyers buy on the open market.
He added that a Savings Bill will be introduced setting up a national savings scheme to 'help home ownership and wealth ownership generally' with contributions matched pound-for-pound by the government.
The scheme is expected to be up and running by 2012.
The programme includes 17 Bills and other non-legislative action, with consultation on the proposals to run for three months.
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