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Brown pledges to help hard-hit homeowners
JOE MURPHY, PAUL WAUGH AND NICHOLAS CECIL03.12.08
Struggling homeowners got fresh government help today as Gordon Brown used the Queen's Speech to combat the recession.
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.
Reader views (48)
"Leave Gordan Brown alone. I voted for him and he is doing agrand job. Its the tory's that is caused all the prombelms in England.
- Michael Quim, Cumbria"
Well, at least learn to spell the poor man's name then! It's Gordon, as in the General of Khartoum fame.
And as for "prombelms" - in case I meet one, what does it look like?
- David Chown, bordeaux ex-pat
Dithering Crash Gordon saves the day again
... six months too late ... for tens of thousands of cruelly disenfranchised 'homeowners', and stressed out families and traumatised kids and their neighbouhood friends, who will never vote Labour [again]!
- Dave, cumbria
Do they honestly think that any body that goes out on a Saturday night will even care about a menu that displays the alchohol content of drinks? If anybody were to actually use it, it would be so they can order the drink with the highest alchohol content so they could get more drunk! Drinking on a weekend is pure escapism its away to forget the reality that we are stuck in **** jobs we all hate in a crappy country run by a retarded govenmet that is now so out of touch with its citizens and simply doesn't care about anything other than lining its own pockets with tax payers money.
- John Smith, bedfordshire
To the other Nobby Clark - immitation is sincerely flattering. I thank you.
PS: You might want to sort out your usage of commas.
- Nobby Clark, Perth, Scotland
When you have nobby clark of jockland making stupid remarks i find there is no hope for the human race in the uk.
Give labour the boot you know it makes sense
- Mike B, Lincoln UK
I am so afraid of Nu Labor and what they have done to my savings and financial position. I worked hard all my life for most to be squandered in 10 years of Crash Gordon. David Cameron and his team get my vote. Please save Britain!
- Jacqueline, Hampstead, London
Wonderful I'm impressed by the Labour government with their proposed introduction of the lie detector for those on benefits, over 60s being forced to seek employment, but they seem to forget we are in the middle of a recession created by the banks, other countries and not forgetting those in power in parliament, thousands of people are now unemployed with more job cuts to follow, they were going to close job centres but had to backtrack because more people needed them. Also, we have MPs being arrested, their offices and homes searched, but denial of any prior knowledge coming from the Prime Minister, the Home Secretary and others. Lie Detectors for ordinary citizens in this country, let them take the lie detector test and see the outcome. Then of course we have the possible loss of the pound to the euro, and the referendum on Europe, how many more things are going to come to light? Or will another MP be arrested for wishing to inform the people of this country about things which are underhanded but not a threat to national security, unless of course you count the councils who spy on their townspeople via their wheelie bins, follow them from their home to see where they go, and of course not forgetting the MPs who failed to declare they employed members of their families to work for them, Lie Detector don't make me laugh some of them wouldn't know the truth if it jumped up and slapped them in the face. These are examples of people we elected to serve the people of this country
- Mandy Jn, Manchester UK
If only David Cameron was our Prime Minister,we could all rest in the knowledge that he would do nothing.
- Nobby Clark ,Perth, Scotland, Perth
...
"To prevent a Northern Rock-style run, the Governor will be allowed to keep secret short-term liquidity help to banks" <-- this is bad .the govt spent 120mill on northrn rock .if that were to happen with another bank we would not know about it if that rule came in.
i advise you to vote Lib Dems. they are the only ones proposing to tax working and middle class people less and tax thr rich more .In other words, they are the ony ones calling for fairer taxation. also vince cable would make a far better chancellor than Osborne or anyone else for that matter. he foresaw what is happening now 5 years ago and warned gordon brown that if he continued with his policies that britain would be in an awful position once the financil crisis hit. brown replied "in the past, we've been right and you've been wrong". whos right now? (thatd be Vince Cable). the guy would be excellent .trust me.
- Dan, Chelmsford ,UK
Grant, London - Dont believe everything this government tells you. They know they made it worse in this country by not giving the Bank of England powers to manage asset bubbles, not just inflation. Eddie George former Governor of the BOE, has said as much in the recent past. Thats why Labour keep the repeated use of the word "global" at every opportunity. They think that people like you will beleive them. Dont trust me - Look for the interview!
On the US - Greenspan knew he had to keep the US economy moving along for political reasons, knowing full well that the bust would be longer and harder. Dont trust me - Read his books!
The Truth is out there, just not from Labour.
- Dave Davies, Basingstoke, Hants
Here we go again.
Will the Nu (and old) labour MPs guarantee the bad loans made as a result of the 'threat', they are pushing and if it goes wrong, as it will in a number of instances, they should stump up out of their owns pockets (and pigs fly!).
Education, having caused the problem, they are trying to correct their errors. Get first hand experience for a few months (MPs teaching classes, the more problematic the better) and then legislate, undoubtedly harsher punishment for school offenders would result. It won't happen, they are too busy blaming others for their mistakes. Never mind qualifications, they didn't need that to become MPs, so don't need it to find out. Becoming an MP are one of the few callings nowadays that doesn't require a qualification, other than show of hands.
Crime, will continue to rise because they cannot lock up (no place because of Brown's scrapping the propgramme 11 years to build more prisons). Alright for them, they have their own personal police guards, which they deny the voters. Besides which, think of the lost revenue on drink and tax on profits if they undid their previous actions. Not on, they need the money so they can continue imbibing subsidised booze in the House!
- Hugh, Middx
"In Britain, he added, there could never be "one rule for some, and another rule for others"
AND THEN HE ALSO SAID
"It will allow public bodies to take “positive action” in favour of minorities"
SAYS IT REALLY DOESNT IT?
- P I Staker, London
"Just how can you hold the government to count over a global recession that started over the big pond? I doubt your leader Cameron could do any better in influencing global stock markets...
- Grant, London"
If you mean holding the government to ACCOUNT- yes we do. If it's all the probl;em from over the big pond or global, including across the little pond, perhaps Grant can explain to us why
1) the pounds has plummetted against both the dollar and the Euro
2)Why the cost of insuring against default for UK government debt has rocketted and is double that fro France and Germany. Come on Grant, if we are all in the same boat the economic "Moses", AKA the Bottler, msut part the waves, resurrect the pound and banish the increase in the premium on insuring our debt.Just unlucky I guess. It's the way Grant tells 'em.
- Cantstoplaughing, Notgrants Lalaland
14 more Bills. I'm having trouble coping with the ones I have already!
- Michael B., Folkestone
Credit where credits due at last a prime minister who takes action to address the real problems in the country.And also one who recognizes that banks have had far too much power for far too long,they will now have too dance to the tax payers tune.
- Peter, Darlington England
It's all academic as we will be having an election soon and all of these "initiatives" will get kicked into the long grass.
- Nobby Clark, Perth, Scotland
Do keep up Grant London.
Here is a few crib notes for your GCSE
The bundeling of bad debt and toxic mortgages was thought up in the UK by our traders and bankers
Brown took away the oversight of the Bank of England
He replaced it with ill qualified body (FSA) that could not and did not take action agains the traders
He sold our Gold and told everyone that would listen he was selling it so it went for rock bottom prices.
He set up credits which allows the goverment to redistribute any wealth you make to people who dont make it .
Whats not to love ???????
- Drowning Not Waving, UK
"families who find it difficult to meet their mortgage payments in the downturn are in line for extra support"
What about us sub £25,000 families who cannot get a mortgage and are forced to rent, yet earn too much to be entitled to housing benefit? When are we going to get some help? £25,000 gross per annum is not easy to live on in the home counties while trying to support a family.
- Gareth Baughan, Harpenden, Hertfordshire, England
How will Brown help home owners? by cutting of there benefit when thay loose there jobs through no fault of there own?
- Kev, London
Nationalised Northern Rock should be used as the "Mortgage Vehicle" for the Government to ease the so called "shortage of mortgage funds".They have the machinery in place to set the rates and terms so why not-because they are a bunch of incompetents who can't think for themselves.
This course of action would immediately have the effect of "competetive rates" of those who still wish to remain in this market place and undoubtedly they will come out of the woodwork.
- Harvey Lawrence, london
Once again we have the government fiddling with problems of their own creation. Not all of the financial disaster was as a result of problems in America. If regulation had been more stringent over here, bank borrowing and lending would have been curtailled, because a risk would have been identified.
This Govt also passed Laws allowing longer hours etc for what they now call binge drinking, but they are unwilling to tell plod to enforce the Law in relation to the serving of alcohol. If the law in respect of the sale of alcohol was enforced as it should be, i.e. it is illegal to be drunk in a public place, and illegal to supply alcohol to someone under the influence of alcohol, then perhaps we would see a reduction in violence on our streets, and help protect plod as they try to sweep up the mess. Mind you, a couple af anomaolies are manifest, if bar staff were to enforce the no service if under the influence of alcohol, then everyone who has had only one drink could, in theory be refused, after one drink it could be argued you are under the influence, secondly: this governments attempt to control our drinking with the cafe culture idea is doomed to failure, drink standing up, you can sit down when you're drunk, drink sitting down, you have difficulty standing up. Ipso facto i drink standing up.
- Alan, carlisle uk
Wow Grant (I guess there must be some unpaid Nu Liebour supporters even now. Answer me this then. What was Northern Crock doing offering 125% mortgages in the states then? What part of Thamesmead is US soil? You recall Thamesmead where (recent media reports) in one block 89% of mortgages were mis sold?
Face it (student?) Grant, Crash Browns fingerprints are all over this recession. Or do you subscribe to the dubious theory that ten years of boom is 100% Crash's doing but come the recession it's 'nothing tae do with me- a bigger boy made me do it then run off'?
The country's broke, deep in debt and thats again nothing to do with Prudence? What job was Prudence doing for the last ten years then? You want him to get all the praise and none of the responsibility when he's taxed us until the pips squeak? Are you sure your not really working for Mandy?
I quote a Labour PM "I tell you comrades that you can't spend your way out of recession" 1976 go look it up.
Papers please citizen or go to jail!
- Rusty Shackleford, UK
- Michael Quim, Cumbria
When exactly did you vote for him, must have missed that election? I think you will find that nobody had an opportunity to vote for him, including his own party members.
But then that does not surprise me for this dictatorial party have denied this country a vote on the European Constitution, even though it was written down in their election mandate.
Democracy is dead in this country and this government are arresting the opposition as they do in Zimbabwe.
UK under Labour = Banana Republic.
- Frank, Home Counties, England
With HM sitting there dressed up like a christmas tree is hardly the best message to send at these difficult time. Surely her advisors could understand the turmoil & individual suffering that is currently rampant and suggest an exception of restraint to tradition of pomp for show or are they all out of touch with reality?
- Jon, London
Oh is he going to cancel the HIPS and doing away with all those registration duties that he introduced over the years?
- Martin O, London, NW1,
I really wish the Queen would show a bit more gumption and not read out statements written by Mandelson. She is not a newsreader after all.
- Delphine, Oxford
I don't feel comfortable being preached at by benefit scroungers like the queen.
- Neil, london uk, Airstrip ONE .
WOW! it would seem you lot are just all plainly anti Labour, and no matter what they do, it will always be wrong...
Just how can you hold the government to count over a global recession that started over the big pond? I doubt your leader Cameron could do any better in influencing global stock markets...
- Grant, London
Most of the offerings in this bill are to correct problems created by this incompetent Labour Government.
There are a lot of people in trouble or will soon be. Surely 'allowing walkers on clifftops' is not the answer. Would it not be easier for all, if they they just resigned and called an election?
- Harry H, London UK
I think we need to see a seachange of thinking on the industry side of the equation because despite government intervention on a massive scale all industry seems to be able to respond with is more and more job cuts as a reaction to statistics of the past rather than pro act to promote growth in the future.
Any halfwit can lay off thousands upon thousands to be seen to be protecting the bottom line on behalf of shareholders. But right now the cascade of job losses stemming from financial services suggests that these companies will have to put shareholder interest second to that of the wider economy and now many of them have been bailed out by the taxpayer they should take steps accordingly which I think requires wholesale changes at management level.
The road to Xanadu feels like a fast track to perdition under the current lazy unimaginative bull market players we have at the helm at present.
It has long been argued as to whether business and industry have a role to play in society and recent global evidence suggests it does so unless these over rumunerated under incentivised 'captains' of industry seriously believe that massive unemployment is good for either investor or society their contribution to the downturn is starting to exceed that of the idiots who over borrowed/over lent (*delete as appropriate)
- John Bloomfield, Twickenham
All sounds good to me. Get the workshy off their arses, cut off the chav scum from benefits, lock up the delinquents running around our cities and force immigrants to prove who they are so we can kick them out for not having any paperwork.
- Olly, South London, UK.
Can someone please explain to me, what EXACTLY is the Government's objections to raising the legal age for purchasing alcohol to 21? It seems to me that this measure would go a long way in restricting much of the anti-social drinking that is a blight on this Nation.
- Yuri Koorland, london
What about further suppression of democracy? Surely that's top of Labour's priorities at the moment.
- Simon, London, UK
The only way to abolish "one rule for some, and another rule for others" is to reform public sector pensions and MP's index linked, gold plated expenses, benefits and pension packages. A stint as an MP should not set you up for life...
- Adam, London
In Britain, he added, there could never be "one rule for some, and another rule for others".I've obviously been asleep for the past decade, because that is exactly how it is thanks to Nu Labour.
Labour have had all these years to do something about the bone idle living off the state, so he waits until a recession and then decides they should try and find jobs. Priceless !
- Sue, Orpington, Kent
labour has never kept a promise yet unless it lined their pockets
3 polls in this area , majority against.All overturned by labour.so whats the point.
- Steve, stanley uk
Leave Gordan Brown alone. I voted for him and he is doing agrand job. Its the tory's that is caused all the prombelms in England.
- Michael Quim, Cumbria
£20,000 fine and six months in prison for not displaying the strength of drinks, but for carrying a knife..... still a slap on the wrist I guess.
Glad to see that Brown is getting tough on crime.
- Casper Slides, France at the moment
More shame on Bean Brown: he let the banks run untamed, gave them more money to lose, introduced the benefits for all who wants to live on the state and let the country go to social waste with crime and low policing, in the first place! And what does he "PLAN" now?!
- Peteo, London
Does anyone remember the days - about 12 years ago - when news was reported AFTER it happened, not before . . . ?
Not that it matters that much: the Labour Government will do something completely different later if it looks better that way: look how they're about to pass the buck (if you excuse the pun) for the present mess to the Bank of England. 'Horse', 'Stable door', 'Bolted' - make a sentence anyone?
- Roz, Chamonix, France
It's hardly the Queens speech.It was penned by labour.Another reason why we should get shot of this woman,she's of no real significance anymore and a total waste of time.
A bit like the traditions that surround this outdated pompous event.
- Pete, London
Did he not pledge this before?
- Georgie, Islington, London
The Queen might just as well stay at home as virtually the whole of hewr speech has been leaked by Labour. What was that about leaks to the Tories? Talk about hypocracy, what an evil lot Labour are.
- Roger Slade, Winchester, Hampshire, England
what a load of guff - we need more political parties to kick these 3 lame ducks out of the running.
- Fly, london
One thing we have learned from this government is to await the detail before drawing any conclusions from big speeches. So do not be surprised if, whatever the headline's following the Queen's speech, they will have to be modified.
- Simon, london
When EXACTLY are the Banks & Building Societies going to finally be legally forced into reimbursing their "Ripped-Off" customers for their systematic, unnecessary, greedy
"over-charging" over the last 10 years? Wasn't this the ideal opportunity to make that announcement too? When EXACTLY is Gordon Brown, Alistair Darling and their
government going to "immediately underwrite the automatic repayment" of ALL of these outrageous "overcharges", with FULL repayments being made automatically within 30 days? After all, the "fat-cat bankers and directors" have ALL received their vulgar excessive salaries, bonuses & profit shares for years on the back of these unscrupulous practices. Shouldn't these bankers be forced to pay back their illicit gains or face time in prison?
NOW is the time to act before any more of these banks go bust or are taken over by the state. The government MUST now GUARANTEE the bank's records in respect of ALL of their greedy over-charging will NOT simply mysteriously disappear! After all, could the Government and/or its Regulators who did NOTHING about the totally unnecessary, greedy "over-charging" NOW be deemed to have been "contributory negligent" and "vicariously liable" for permitting this to both occur and to continually recur over the decade timeline?
- Fraser, Telford Park
During the time that Labour has been in power crime has gone up, back to boom and bust. We still have the Unions flexing their muscles and the only people who seem to be keeping their jobs are the public sector. Do not believe their lies. The fact that a Conservative MP's offices were raided shows that Labour is NOT a Democratic party.
- Jk, London
When the public sector fails babies die and wars start. When the private sector fails all the prices come down.
- Sandy, London
