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UK's Brown lays out plans to soften blow of recession
(Agencies)
Updated: 2008-12-03 10:03 Brown's Labour government has announced plans to inject billions of borrowed pounds into the economy in an attempt to avert a slump that could cost the party any chance of winning a fourth consecutive election.
The crisis has forced the government to nationalise two banks and take stakes in several others but ministers remain concerned that banks have not freed up lending. A Treasury source said there was likely to be a mention in the speech about compelling banks to lend, but it would be an intention rather than a policy with a definite timeframe. Civil rights group Liberty said proposed new immigration rules would mean anyone who travelled outside Britain could be asked to prove their identity at any time after their return. It alleged this was an attempt to introduce a compulsory identity card, controversial in Britain, through "the back door". Brown had already outlined many of his proposals for new legislation in May when he said the government would buy unsold new homes, either to rent out or to offer to first-time buyers. Since then, Britain's economic prospects have taken a dive, prompting the Bank of England to slash interest rates by 1.5 points last month. Some proposed measures Brown set out in May, especially those seen as unfriendly to business, are likely to be dropped. These include a proposed law to force communications companies to keep logs of Internet use for crime-fighting purposes, the Guardian said. The government may postpone plans to levy a tax on businesses to fund economic development, the newspaper said. |
