Brown to host business crisis talks

Prime Minister Gordon Brown and Business Secretary Lord Mandelson will hold early morning talks with officials from the construction industry, including the Homebuilding Federation and the Federation of Master Builders.

The breakfast meeting follows Chancellor Alistair Darling's announcement in the Pre-Budget Report (PBR) that £3 billion of capital spending will be brought forward as part of the Government's attempt to spur the economy back to growth.

Construction has been one of the hardest hit sectors as the UK heads for a recession, with building projects grinding to a halt and workers being laid off.

Later in the day, Lord Mandelson will also meet motor industry leaders, who are pleading for more Government help for beleaguered car companies.

New car sales have dipped in recent months and UK-based motor manufacturers have announced periodic plant shutdowns and reduced production.

The Society of Motor Manufacturers and Traders (SMMT), as well as industry executives, will see Lord Mandelson to propose a package of possible Government measures.

These include scrapping plans for increased vehicle excise duty and the abolition of the so-called "showroom tax".

The SMMT said: "The motor industry faces a set of unprecedented market conditions. The dramatic fall in demand for new vehicles around the world, combined with the limited availability of funding and liquidity, now puts at risk valuable industrial capability.

"The global credit crisis is at the core of the issues we face and the fundamental challenge is the accessibility and affordability of credit.