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| Brown to face economy questions | Brown to face economy questions |
| (about 4 hours later) | |
| Gordon Brown is set to be quizzed later on the state of the British economy, after Bank of England chief Mervyn King warned that "the nice decade" was over. | |
| The prime minister faces questions at his regular press conference, following announcements on a £2.7bn tax cut and his draft legislative programme. | The prime minister faces questions at his regular press conference, following announcements on a £2.7bn tax cut and his draft legislative programme. |
| Tories and Lib Dems say the programme was an exercise in political survival after Labour's local elections losses. | Tories and Lib Dems say the programme was an exercise in political survival after Labour's local elections losses. |
| All parties are campaigning in Crewe and Nantwich ahead of the by-election. | All parties are campaigning in Crewe and Nantwich ahead of the by-election. |
| Labour is defending a majority of 7,078 there, following the death of long-serving MP Gwyneth Dunwoody in April. | Labour is defending a majority of 7,078 there, following the death of long-serving MP Gwyneth Dunwoody in April. |
| The poll on 22 May is seen as a key to Labour's prospects of recovery, after its worst local election results in 40 years. | The poll on 22 May is seen as a key to Labour's prospects of recovery, after its worst local election results in 40 years. |
| Inflation fears | Inflation fears |
| The PM, seeking to move on from the 10p tax row, outlined legislative plans including public service, housing and welfare reforms on Wednesday. | The PM, seeking to move on from the 10p tax row, outlined legislative plans including public service, housing and welfare reforms on Wednesday. |
| But his statement coincided with a stark warning from Bank of England Governor Mervyn King that the outlook for UK inflation had "deteriorated markedly". | But his statement coincided with a stark warning from Bank of England Governor Mervyn King that the outlook for UK inflation had "deteriorated markedly". |
| He added: "For the time being at least, the nice decade is behind us." | He added: "For the time being at least, the nice decade is behind us." |
| Mr Brown is also expected to face questions on the economy in a series of interviews. | Mr Brown is also expected to face questions on the economy in a series of interviews. |
| KEY PARTS OF PLANS £200m to buy unsold new homes and rent them to social tenants£100m for shared equity schemes to help first-time buyers purchase new-build homesParents' councils to help run schoolsMore accountable chief constablesProtection for depositors in the event of future bank collapsesHelp for first-time buyersExtension of flexible working to parents with older childrenJobless skills and training assessmentsTests for immigrantsSeas and shores protection, plus review into last year's floods implementedLords reform, party funding reform and consultation on Bill of Rights Analysis: Brown's fight back In full: All the planned billsUK inflation woe 'set to worsen' | KEY PARTS OF PLANS £200m to buy unsold new homes and rent them to social tenants£100m for shared equity schemes to help first-time buyers purchase new-build homesParents' councils to help run schoolsMore accountable chief constablesProtection for depositors in the event of future bank collapsesHelp for first-time buyersExtension of flexible working to parents with older childrenJobless skills and training assessmentsTests for immigrantsSeas and shores protection, plus review into last year's floods implementedLords reform, party funding reform and consultation on Bill of Rights Analysis: Brown's fight back In full: All the planned billsUK inflation woe 'set to worsen' |
| He is likely to be questioned about his response to the row over the abolition of the lowest 10p tax rate, amid concerns that it would hit 5.3m people, many on low incomes. | He is likely to be questioned about his response to the row over the abolition of the lowest 10p tax rate, amid concerns that it would hit 5.3m people, many on low incomes. |
| Chancellor Alistair Darling announced on Tuesday he was putting up the personal tax allowance for people earning less than £40,835 by £600 - at a cost of £2.7bn, which will be funded by additional borrowing. | Chancellor Alistair Darling announced on Tuesday he was putting up the personal tax allowance for people earning less than £40,835 by £600 - at a cost of £2.7bn, which will be funded by additional borrowing. |
| And Mr Brown is likely to be questioned about some of the measures outlined in his draft legislative programme - effectively a preview of November's Queen Speech. | And Mr Brown is likely to be questioned about some of the measures outlined in his draft legislative programme - effectively a preview of November's Queen Speech. |
| He said his "immediate priority" was to help families deal with economic turbulence and his "passion" was to give every person in Britain the chance to live up to their potential - and asked voters to judge him on those tests. | He said his "immediate priority" was to help families deal with economic turbulence and his "passion" was to give every person in Britain the chance to live up to their potential - and asked voters to judge him on those tests. |
| He said the 18 proposed bills - including help for first-time buyers, a savings scheme for people on low incomes and linking English hospitals' funding to performance - would create a "fairer, more prosperous" Britain. | He said the 18 proposed bills - including help for first-time buyers, a savings scheme for people on low incomes and linking English hospitals' funding to performance - would create a "fairer, more prosperous" Britain. |
| It will mean people get more rights to shape public services including schools, the NHS and the police. | It will mean people get more rights to shape public services including schools, the NHS and the police. |
| But Conservative leader David Cameron told Mr Brown the statement had "nothing to do with the long-term needs of the country and everything to do with your short-term political survival". | But Conservative leader David Cameron told Mr Brown the statement had "nothing to do with the long-term needs of the country and everything to do with your short-term political survival". |
| Liberal Democrat leader Nick Clegg dismissed the announcement as a "ragbag of proposals" at the end of a "dreadful week" for the prime minister in which he had announced tax changes to "dig himself out of a political hole". | Liberal Democrat leader Nick Clegg dismissed the announcement as a "ragbag of proposals" at the end of a "dreadful week" for the prime minister in which he had announced tax changes to "dig himself out of a political hole". |
| Mr Cameron and Mr Clegg will be campaigning in Crewe and Nantwich on Thursday, as will ministers Andy Burnham and Hilary Benn for Labour. | Mr Cameron and Mr Clegg will be campaigning in Crewe and Nantwich on Thursday, as will ministers Andy Burnham and Hilary Benn for Labour. |