£14bn move to try and stave off credit crunch and revive Labour's fortunes

Billions of pounds could be pumped into the housing market to kick start the economy and revive Labour fortunes.

Alistair Darling has asked his advisers to look at ways to provide support for new mortgages until the financial crisis has abated.

This could include the Government offering to match the value of the lenders' assets - the borrowers' homes - with gilt-edged securities.

This means it will take the risk that the homes will decline in value, therefore helping the banks to avoid collapse.

Another idea being discussed in the Treasury is increasing the amount of cash it is providing to local authorities to buy up homes from developers.

The Prime Minister has reportedly asked Mr Darling to draw up a programme of tax cuts to be unveiled at the party conference in September.

These could include cuts in fuel duty, raising the threshold for the basic rate of income tax, and changing the rules on inheritance tax and stamp duty.

Other options include increasing the working families' tax credit and other payments to offset rising food and utility bills.

Mr Darling will also consider measures to help families facing home repossession or bankruptcy, subsidised flexible working schemes to help working mothers, and free school meals for primary schools.

Such schemes could cost up to £14billion, breaking Mr Brown's self-imposed golden rule on borrowing.