Brown pledges to help hard-hit homeowners

In a surprise move, families who find it difficult to meet their mortgage payments in the downturn are in line for extra support.

The Prime Minister was unveiling the new package today alongside a raft of bills to crack down on banks, binge-drinking and benefit cheats.

He has pinned his political hopes on a populist package of laws targeting public dislikes and aiming to strengthen Britain's chances of recovering from recession. Mr Brown is portraying the list of 14 new Bills plus other measures as an attack on unfairness, which seeks to lay down stronger responsibilities as well as rights.

At the top of the list is the banks, now facing unlimited fines if they fail to treat customers and small businesses fairly. Ministers made the current voluntary code of practice legally binding to protect firms from sudden hikes in charges or changes to overdraft limits.

Sweeping welfare reforms attempted to get a million people off sickness benefits and impose on all claimants a duty to try to get themselves back into jobs, if they can. Irresponsible nightclubs were barred from offering "drink as much as you like" events, giving free drinks to women and using alcohol as prizes.

But other measures have been dropped which Business Secretary Lord Mandelson, who insiders say has wielded enormous powers of veto behind the scenes, deemed potentially harmful to firms or a distraction from the focus on fighting the recession.

These include banning the display of cigarettes, setting a minimum price for alcoholic drinks and a raft of constitutional reforms, all of which go into the long grass. Lord Mandelson today confirmed he had considered postponing plans for flexible working rights due to come in from next April. However, he decided that in a downturn it would help businesses and staff to get through.

The Conservatives dismissed Labour's announcements as "an exercise in spin and re-announcements".

Shadow work and pensions secretary Chris Grayling said: "Labour has failed to give people fair chances in life through proper education and welfare reforms and has let down communities by failing to control immigration and protect the victims of crime."

The Prime Minister set the tone for his political push in a paper that said the Government regarded fair play as the bedrock of a strong society. "Stronger communities, quite simply, will help our country come through these times faster and stronger," Mr Brown said yesterday. "So as Government takes action, we expect people to play their part in return, with clear consequences for those who do not."

In Britain, he added, there could never be "one rule for some, and another rule for others". Streets around Westminster were closed to traffic for the traditional pomp and pageantry of the State opening of Parliament. But the colourful affair was being overshadowed by reports of plots to disrupt proceedings over the arrest of Tory MP Damian Green. Tory sources denied the claims.

Economy
A new statutory banking code will force banks to give advance notice of changes in interest rates and withdrawal of overdrafts. Those who fail to comply will face big fines.

The code may be included in the Banking Reform Bill, but it may take the form of secondary legislation to extend the remit of the Financial Services Authority watchdog.

Just as importantly, the Bill will allow the Bank of England, Treasury and FSA to intervene earlier to stop another banking crisis. To prevent a Northern Rock-style run, the Governor will be allowed to keep secret short-term liquidity help to banks. The Financial Services Compensation Scheme will be reformed to enable it to pay out to bank depositors more quickly and efficiently if a bank becomes insolvent. Crucially, the Bank of England will get a new "financial stability" objective to give it sweeping powers to step into the market.

The Savings Gateway Bill will create a savings scheme for eight million low-paid workers from 2010, with a government contribution for every pound saved.

The scheme will be open to individuals in receipt of qualifying benefits and tax credits. In pilots to date, 22,000 people built up £15 million in savings.

Crime
Ministers have shied away from a blanket ban on happy hours, but town halls could outlaw them under discretionary new powers.

Home Secretary Jacqui Smith is proposing a mandatory code of conduct for licensed premises to stop "irresponsible" promotions.

The Policing and Crime Bill would force pubs to list the strength of drinks on a menu. Landlords who break rules could face a fine of up to £20,000 or six months' jail. People flouting "no drinking" zones could be fined up to £2,500.
Communities will get more control of police through elected representatives.

A new system of "earned citizenship" is being introduced. Ministers say the Citizenship, Immigration and Borders Bill will simplify rules and encourage immigrants to integrate. But critics say police and immigration officers will be able to stop anyone who has entered the UK, including British citizens, and ask to see ID documents.

They have also warned that more than 250,000 British passports may be handed out every year including to foreign criminals.

Public services
An Education Bill will compel local authorities to be tougher on failing schools where fewer than 30 per cent of pupils obtain five good GCSEs.

Action could include replacing governors or staff, or opening an academy. So-called "sin bins" will take rowdy pupils. There will also be measures to boost adult education and apprenticeships. Workers will get a right to request unpaid time off to attend training courses.

A Health Bill will link hospital funding to performance by using "patient experience" to measure quality of care. To mark the 60th anniversary of the founding of the health service, an NHS Constitution will be published.

This aims to "reinforce the core purpose and values of the NHS and to introduce measures to make it as effective at preventing ill health and promoting wellbeing as it is at cures".

The Bill will give greater autonomy to Primary Care Trusts and more choice to patients with powers to shape the care they receive.

It also aims to strengthen public involvement in PCT commissioning arrangements.

Welfare
A Welfare Reform Bill aims to get a million claimants of incapacity benefit into jobs, using compulsory skills checks to decide what they are able to do. Claimants must accept help or have payments docked.

Lone parents and over-60s will be pushed to consider jobs and parents will be more responsible for their children's upbringing and financial support. Lie detectors could be used against benefit cheats.

An Equality Bill will streamline 40 years of piecemeal laws covering sex, race and religious discrimination. It will allow public bodies to take "positive action" in favour of minorities and political parties to use all-women shortlists until 2030. Flexible working rights for parents with children aged 16 and under will be introduced in April.

Employers will also be obliged to give workers time off to do courses unless there is a good reason to the contrary.

A Child Poverty Bill puts into law Labour's pledge to eradicate child poverty by 2020. A local democracy package aims to get communities involved in local decisions such as planning and street improvements.

Other highlights
Lapdancing clubs will be redesignated as "sexual encounter establishments" in order to bring them under local control.

The Bill to unlock funding for Crossrail via business rates will go ahead, despite last-minute wrangling between ministers.

Another bill aims to create a coastal path around England, allowing walkers on clifftops, beaches and rocks that were once out of bounds.

A Coroners and Justice Bill aims to give victims a better service from the courts. Video links will be used to protect vulnerable witnesses, especially in gang violence cases. Rules will stop criminals profiting from memoirs and new homicide laws will abolish the partial defence of provocation. The laws forbidding assisted suicide will be updated.

In a further bid to help the ailing building industry, laws will reform commercial contracts for construction firms to improve cash flow. Councils will be encouraged to hold referendums and obliged to respond to petitions as part of attempts to revive local democracy.