'Bold' Queen's Speech promised

4 June 2014 Last updated at 08:40

David Cameron and Nick Clegg have said their final Queen's Speech before the general election will be "unashamedly pro-work and pro-business".

The Queen will announce the laws the Conservative-Lib Dem coalition hopes to pass before the May 2015 poll when she opens Parliament on Wednesday.

Ministers say changes to annuities and funding of workplace pensions will show the coalition's continuing "boldness".

Proposals to "recall" failed MPs are also expected to be among bills tabled.

The last session of the current five-year Parliament is expected to last until next April, with a general election scheduled to take place on 7 May 2015.

Ministers say the measures to be announced on Wednesday will mark a "significant step" in helping to embed the economic recovery and in promoting work, enterprise and opportunity.

'Getting on'

They will also seek to refute opposition claims that the coalition has run out of steam and that the months leading up to the election will be dominated by wrangling and attempts by the coalition partners to put distance between themselves ahead of May's poll.

In a ceremony rich with historic pomp and pageantry, the Queen will announce the government's legislative programme for the year ahead just before 11:40 BST.

It will then be debated by MPs in the Commons on Wednesday afternoon.

Among the measures expected to feature are:

• A bill implementing reforms to annuities announced in March's Budget. In future, people will not be required to buy an annuity with their pension savings and will be able to draw their retirement income in one go if they choose
• A separate bill to allow employees to pay into collective pension funds shared with other workers, a move it is hoped will cut costs and encourage saving
• A new state-funded childcare subsidy worth up to £2,000 a year, replacing the existing employer-funded scheme
• Extra legal protection for people carrying out good deeds, volunteering or planning local events who end up being involved in liability claims
• Curbs on public sector employees claiming redundancy and then taking a job within the same sector
• Plans for a 5p charge for plastic bags in England as announced at last year's Lib Dem conference
• Reforms to speed up infrastructure projects, including new freedoms for the Highways Agency and allowing fracking firms to run shale gas pipelines on private land without getting prior permission
• New criminal sentences for those assisting organised crime syndicates and tougher powers to seize the assets of crime bosses
• Help for pub landlords including a statutory code and a body to adjudicate disputes
• Giving voters the power to trigger by-elections where MPs have committed serious wrong-doing

The prime minister and his deputy said the emphasis of the programme would be helping those "who want to get on in life".

"We may be two parties, with two different philosophies but we understand one thing," they said in a joint statement.

"Countries rise when their people rise. So this Queen's Speech is unashamedly pro-work, pro-business and pro-aspiration."

The fracking bill has prompted a protest by Greenpeace activists, who say they have erected a fence around Mr Cameron's Oxfordshire home and put up a sign saying: "We apologise for any inconvenience we may cause while we frack under your home".

'Distract attention'

Continue reading the main story

David Cameron and Nick Clegg are desperate to answer the charge that they have run out of ideas which their two parties can sign up to and are simply running down the clock until polling day."

End Quote

Mr Cameron and Mr Clegg said the legislative programme was testament to the coalition's longevity and the fact it was still capable of "taking bold steps".

They say the pension changes would provide "freedom and security in retirement", suggesting they would prove every bit as radical as reforms to schools and welfare since 2010 in terms of empowering people.

Campaigners have welcomed more innovation in pensions provision but warned that the changes are not risk-free and said employees and employers must be helped to make informed choices.

Labour leader Ed Miliband called for a Queen's Speech which "signals a new direction for Britain, not one which offers more of the same".

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Carriage maker Jim Frecklington tells the story of the Queen's new state carriage which will take her to Parliament

"We need action, we need answers, we need a programme for government equal to the scale of the challenge our country faces," he said. "We would have a Queen's Speech with legislation which would make work pay, reform our banks, freeze energy bills and build homes again in Britain."

Labour would support an anti-slavery bill if, as expected, it is among the measures announced, Angela Eagle, shadow leader of the House of Commons, told BBC Radio 4's Today programme.

But on the Queen's Speech as a whole, she added: "Just because the government announces it's a bold programme, does not mean actually that it is".

The State Opening of Parliament, one of the highlights of the Westminster calendar, used to take place in the autumn but was moved to the early summer by the coalition government.

With Parliament taking a six-week summer recess from July and rising for a further five weeks for the party conference season in September, parliamentary time available to agree new legislation will be limited.

In addition, six bills - including one authorising the building of a new high-speed rail line between London and the West Midlands - are being carried over from the last session.

Business groups urged the government not to over-legislate and to focus on maximising the benefits of the upturn in the economy.

"Ministers' attention should be focused firmly on delivering existing commitments - from deregulation to infrastructure - rather than introduce a raft of new bills that distract their attention from economic growth," said Adam Marshall, director of policy at the British Chambers of Commerce.

The Green Party of England and Wales, meanwhile, has called for an end for all public subsidies of fossil fuels, a pay cap for executives and limiting rent increases for tenants to inflation.

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May raises school extremism concerns

4 June 2014 Last updated at 08:14

Concerns about the Department for Education's handling of allegations of extremism in Birmingham schools have been raised by Theresa May.

The Home Secretary has asked Michael Gove about claims his department was aware of allegations in 2010 and Birmingham Council two years earlier.

But Education Secretary Mr Gove believes the Home Office is not doing enough on extremism, a report said.

Mr Gove and Mrs May have pledged that they are working together on the issue.

'Someone else's problem'

Continue reading the main story

The allegations relating to schools in Birmingham raise serious questions about the quality of school governance and oversight arrangements."

End Quote Theresa May Home Secretary

In a letter, Mrs May said: "The allegations relating to schools in Birmingham raise serious questions about the quality of school governance and oversight arrangements."

She added: "Is it true that Birmingham City Council was warned about these allegations in 2008? Is it true that the Department for Education was warned in 2010? If so, why did nobody act?"

Mr Gove believes there has been a plot by extremist Muslims to take over schools in Birmingham, according to The Times.

He thinks there is reluctance to tackle the issue in government departments, especially Home Office.

But a Home Office source told the BBC "he was trying to make it someone else's problem".

Those around Mr Gove pointed out it was his view that for over a generation there had been a reluctance in Whitehall to confront extremism unless it developed into terrorism - and his criticism did not relate specifically to the current home secretary.

But a Home Office source was blunt, telling the BBC: "The Department for Education is responsible for schools, the Home Office is not."

"They have got a problem and they are trying to make it someone else's problem," the source added.

A source close to Mr Gove said the education secretary thought "Theresa May was an excellent home secretary".

BBC political correspondent Chris Mason said public rows within the coalition government happen every day.

But this row is different because two Conservative cabinet ministers are at the centre of it, he said.

But the pair insisted they are united.

In a statement, they said: "The Department for Education and the Home Office take the problems in Birmingham schools and all issues relating to extremism very seriously.

"Michael Gove and Theresa May are working together to ensure we get to the bottom of what has happened in Birmingham and take the necessary steps to fix it."

Report findings

Three of the Birmingham schools inspected in the wake of the so-called Trojan Horse allegations have published the findings of their Ofsted reports.

They are rated "outstanding" or "good", although one urges governors to prepare students for "multicultural Britain".

The inspection of 21 schools in Birmingham was a response to claims of a takeover strategy by a hardline Muslim group.

Although there have been plans for all the inspection findings to be published together, this has been pre-empted by repeated reports that five or more of the schools have been found inadequate.

Individual schools, with positive outcomes, have also begun to publish their own report findings.

These include Ninestiles School - an academy in Acocks Green - Small Heath School, and Washwood Heath Academy.

A Department for Education spokeswoman said: "The allegations made in relation to some schools in Birmingham are very serious and we are investigating all evidence put to us in conjunction with Ofsted, Birmingham City Council and the police.

"It is absolutely vital these investigations are carried out impartially, without pre-judgment. Ofsted has inspected a number of schools in the light of recent allegations and will report to the secretary of state shortly.

"Retired senior police officer Peter Clarke has been asked by the secretary of state to make a full inquiry into Birmingham schools and will report back this summer."

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Tesco reports sharp fall in sales

4 June 2014 Last updated at 08:31

Tesco has reported a third consecutive quarter of falling sales as the UK's largest supermarket chain faces increasing competition from rivals.

For the three months to 24 May, the supermarket said like-for-like UK sales including VAT and excluding petrol fell by 3.7%.

Chief executive Philip Clarke said trading would remain challenging "throughout the coming quarters".

Tesco reported a 6% fall in annual profits in April.

The BBC's business editor Kamal Ahmed says that internally, Tesco has admitted the fall in sales is its worst performance for 20 years.

Tesco has faced intense competition from discount rivals including Aldi and Lidl as well as from more upmarket retailers such as Waitrose.

Industry figures continue to show the UK's largest supermarket suffering a decline in its share of the grocery market.

On Tuesday, data from grocery market analysts Kantar Worldpanel showed Tesco's market share declined to 29% in the three months to 25 May from 30.5% a year earlier, while sales fell 3.1%.

Tesco, along with Asda, Morrisons and Sainsbury's, has responded to the threat from discount grocers by lowering prices on essential items including bread, milk and eggs. Tesco said sales volumes of these essentials had risen 28% in the quarter.

It has also launched a programme of store revamps, which will see 650 stores across the UK upgraded in the next year.

Mr Clarke said: "Our accelerated plans are making a real difference for customers and we are more competitive than we have been for many years."

Revival

But he warned that sales were set to continue to suffer.

Mr Clarke added: "We are pleased by the early response to our accelerated efforts to deliver the most compelling offer for customers.

"We expect this acceleration to continue to impact our headline performance throughout the coming quarters and for trading conditions to remain challenging for the UK grocery market as a whole."

Continue reading the main story

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers said investors "would need to ponder whether Tesco is a company showing glimpses of revival given its turnaround plan, or whether it is past its sell-by date."

He added: "The wider ferocity of competition is making the implementation of the plan more difficult to achieve, although the company is trying to position itself within the three largest requirements of the supermarket sector at present, in the form of price, online and convenience stores."

Shares in the supermarket were 1%, or 3.5p, higher to 300.55 in early trading on the London Stock Exchange.

Tesco's international business recorded a 2.2% fall in like-for-like sales, including VAT and excluding petrol. Within those figures, like-for-like sales fell 1% across the supermarket's European operations and 3.2% in Asia.

In April, Tesco reported a 6% fall in group trading annual profit to £3.3bn. It was the second year in which the supermarket reported falling profits.

Tesco also confirmed the resignation of its finance director, Laurie McIlwee, after 15 years with the company, following what was believed to have been unrest among investors.

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Mother and two children 'deported'

4 June 2014 Last updated at 08:38

A woman who fought to stay in the UK over fears her daughters could face female genital mutilation in Nigeria has been deported, her lawyer has said.

Afusat Saliu, 31, and daughters Bassy, four, and Rashidat, two, were put on a flight on Tuesday, lawyer Bhumika Parmar said.

Ms Parmar said she had spoken to Ms Saliu in Nigeria who was "really upset at the situation".

The lawyer said she would continue to fight the case.

The UK Border Agency arrested Ms Saliu and her daughters on 28 May.

In an earlier statement, the Home Office said the case had gone through the "proper legal process".

The family was held held in a detention centre before the deportation. A previous removal order on 30 May was delayed by the Home Office.

Ms Parmar said permission had been granted for a judicial review.

Ms Saliu fled from Nigeria in 2011 claiming her stepmother had threatened to subject Bassy to female genital mutilation.

Ms Saliu, herself a victim of FGM, was pregnant at the time.

More than 120,000 people have signed a petition calling on the Home Office reconsider the case.

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One dead after car and bus collide

4 June 2014 Last updated at 08:49

A man has died and 13 people have been injured, one critically, in a collision between a car and a bus in east London.

The route N38 bus and the car crashed on Lea Bridge Road, at its junction with Essex Wharf, in Clapton at about 02:20 BST, the Met Police said.

The dead man and the critically injured man were travelling in the car.

Two other men, who were in the back of the car, are in a serious but stable condition. All four are believed to be in their mid-20s.

No arrests

Ambulance crews treated 10 other people who were passengers on the N38 night bus which was travelling towards Whipps Cross. The crash took place close to the Lee Valley Ice Centre.

A number of the bus passengers were taken to hospital by another bus, but were described by police as walking wounded.

No arrests have been made, police said.

Road closures are in place from Chatsworth Road with the junction of Lea Bridge Road to Orient Way at the junction with Lea Bridge Road.

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University complaints top 20,000

3 June 2014 Last updated at 05:00 By Fran Abrams File on 4

More than 20,000 students complained to their universities last year, a Freedom of Information request by the BBC has shown.

Responses from 120 universities across the UK revealed that total academic appeals and complaints were 10% higher in 2012-13 than in 2010-11.

Universities Minister David Willetts welcomed the finding.

He said it showed that students were demanding more for the £9,000-per-year fee.

The BBC sent Freedom of Information requests to 142 universities across the UK, asking how many complaints and appeals they had received since 2010. A total of 120 responded. The results showed universities were upholding more student complaints than ever before.

The amount paid out in compensation had also risen. The total paid since 2010 was more than £2m.

Mr Willetts said it appeared that since tuition fees rose to £9,000, students were more likely to hold their universities to account when things went wrong.

"If there are more complaints because students are more aware of what they should expect of funding and are more demanding, then I think that's a good thing," said Mr Willetts.

"When there's a fee of £9,000, the university is obliged to show what they're doing and provide a decent service."

Student consumers

The independent adjudicator for higher education, Rob Behrens, deals with university complaints which cannot be resolved internally.

He said he had also seen a rise in the smaller number of complaints which come to his office each year. In 2012, he received 2,000 complaints.

Continue reading the main story

• Listen to the full report on File on 4 on Tuesday 3 June at 20:00 BST on BBC Radio 4

"In the last five years, we've seen a continual year-on-year increase in the numbers of complaints, often to the tune of between 20% and 25%. Very recently that has tailed off, which is encouraging," says Mr Behrens.

"I think the decision to raise the fees has had an impact on student thinking. Students do see themselves more as consumers than they used to. They want the best possible degree they can get."

A large proportion of the total appeals and complaints relate to cases where students appeal against their grades. But in other cases, students complain because they are unhappy with the content or structure of their courses.

The largest number of appeals and complaints in one full year was at Anglia Ruskin University, where the total in 2012-13 was 992.

Among those who have complained about the university recently were a group of law students, who have just completed a three-year law degree at the university's Chelmsford campus.

Several of them signed up to take a Legal Practice Course in order to become trainee solicitors. But after they paid a deposit, they were told the course would not run at Chelmsford next year and they would have to travel 45 miles to Cambridge.

Online lectures

They will have two days' face-to-face teaching and will have to watch the remaining lectures online rather than attending them live.

One of the students, Rachel, said: "I was in complete shock, it was just we'd always been led to believe we could just carry on and there was never any doubt, there was never any warning that this could happen. I don't think it's fair - we have to pay the same in tuition fees when we're receiving less for our money."

The university has rejected the students' complaint, and they are considering whether to take it further. Anglia Ruskin did not comment on the case but told the BBC it allowed larger numbers of students to appeal than some universities.

"If anything, our process has been overly generous. With a student population of more than 31,000, our numbers are not particularly surprising," said a spokesman.

The new Competition and Markets Authority is investigating whether universities are fulfilling their responsibilities under consumer protection legislation, following a report by its predecessor body, the Office of Fair Trading.

The team leader responsible for the work, Carmen Suarez, said: "We found some evidence of practices that may actually breach the consumer protection legislation. Examples include geography students that needed to complete a field trip in order to be able to graduate and were not told the cost in advance."

Find out more about this story on File on 4 on Tuesday 3 June at 20:00 BST on BBC Radio 4. Or catch up later on BBC iPlayer.

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Staff leave Sierra Leone over Ebola

3 June 2014 Last updated at 08:02

A British firm has evacuated "non-essential" personnel from Sierra Leone following an outbreak of the deadly Ebola virus.

The first company to go public on such a move, London Mining said production at its Marampa mine was unaffected.

It said it was working with local and international agencies to monitor the situation.

The incurable and highly contagious disease was reported in the west African country last week.

There are already about 50 suspected cases in Sierra Leone and five people have died. There have been more than 100 deaths in neighbouring Guinea where the outbreak started, with cases also reported in Liberia earlier this year.

Iron ore company London Mining said it had evacuated what it called non-essential expatriate staff and was carefully monitoring the health of all of its employees.

The company is one of two large extraction companies in the country.

Ebola first emerged in central Africa 20 years ago and kills between 25% and 90% of victims. Symptoms include internal and external bleeding, diarrhoea and vomiting.

It is spread from one person to another by contact with infected blood, bodily fluids or organs or through contact with contaminated environments.

The Sierra Leone government, with help from aid agencies, is doing what it can to isolate known cases.

But late last week the families of several infected patients went to a rural clinic and forcibly removed their relatives.

BBC international development correspondent Mark Doyle says the families apparently wanted to have their loved ones treated by traditional African healers, and this action is bound to have spread the disease further.

Ebola virus disease (EVD)

• Causes severe outbreaks of viral haemorrhagic fever (VHF)
• Fatality rate of up to 90%
• Occurs mostly in remote villages in central and west Africa, near tropical rainforests
• Transmitted to people from wild animals and spreads through human-to-human contact
• Fruit bats are thought to carry the Ebola virus
• No cure or vaccine

Source: World Health Organization

Why Ebola is so dangerous

London Mining said in a statement on Monday: "London Mining notes recent reports from Sierra Leone suggesting that an increased number of incidents of Ebola fever have been found in the country.

"The company is not aware of any incidences of the disease among its workforce or in the communities surrounding the Marampa mine.

"However, London Mining is regularly monitoring the situation with Sierra Leone's Ministry of Health and Sanitation, the World Health Organization and other international agencies.

It added: "Following consultation with the relevant authorities, the company has imposed restrictions on travel in the region and continues to work with employees to promote awareness of the disease, including the provision of information on how it is transmitted and the signs and symptoms.

"A number of non-essential personnel have left the country due to voluntary restrictions on non-essential travel.

"London Mining has also established proactive health monitoring of the workforce, including working with trained personnel to screen all staff and visitors entering our sites, and has ensured the Marampa facility has the appropriate medication and equipment to manage any potential occurrences of the disease.

"Production at Marampa is not currently affected".

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Housing market 'starts to moderate'

3 June 2014 Last updated at 08:43

There are signs that activity in the housing market may be "starting to moderate", said the UK's largest building society, the Nationwide.

Prices in May rose by 0.7%, compared with a 1.2% rise in April.

However, the annual rise in house prices edged up from 10.9% to 11.1%, the fastest increase in seven years.

Nationwide said the slowdown could partly be the result of new mortgage lending rules, which officially started in April.

It added that the government's Help to Buy mortgage guarantee scheme seemed to have played little part in house price growth.

The building society's comments came as the European Commission called on the UK to raise taxes on higher-value properties, build more houses and adjust the Help to Buy scheme.

The average UK property price is now £186,512, the building society said.

Mortgage quiz

There have been "tentative signs that activity in the housing market may be starting to moderate", Nationwide chief economist Robert Gardner said, with the number of mortgage approvals in April down 17% from January.

"It is too early to say whether nationally this is indicative of a cooling trend in the wider market," he added.

The May slowdown could be linked to the introduction of tougher questions in the mortgage application process, he said.

The new measures require mortgage lenders to test buyers more strictly about whether they can afford mortgage repayments, including under the scenario of rising interest rates.

Despite more stringent mortgage lending rules, demand from first-time buyers was "playing an increasingly important role in the housing market", Nationwide said.

In March, first-time buyers "accounted for 48% of house purchase activity".

Help to Buy impact

Nevertheless, the government's Help to Buy scheme, which is designed to ease first-time buyers into the housing market, was not a major factor in price rises, Nationwide said.

In the first quarter of the year, Help to Buy mortgages accounted for 9% of total mortgage completions.

In London, which saw the fastest house price growth in the quarter, Help to Buy accounted for about 4% of mortgage completions, Nationwide said.

"The evidence suggests that higher-priced areas have been seeing the largest percentage increases in house prices, especially in London and the South East.

"But the majority of Help to Buy loans have been on transactions where the property values are below the national average," Mr Gardner said.

Critics have voiced concerns that the government mortgage guarantee could contribute to a UK housing bubble.

However, last week Graham Beale, the chief executive of Nationwide, said that the housing market could be facing a "natural correction" and warned that there was a "slowing down in the market place", particularly in London.

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Lawyers aiding crime could face jail

3 June 2014 Last updated at 09:05

Lawyers, couriers and accountants could be jailed if they turn a blind eye to criminal activity they profit from, under Home Office plans.

It wants to see a new offence of "participation in an organised crime group" to target those who have reasonable cause to suspect they are part of an illegal enterprise.

Tougher sanctions will also claw back more of the profits from crime.

There is currently £1.5bn outstanding in unpaid confiscation orders.

This is double the amount seized in criminal assets since 2010.

In March, MPs criticised the government for allowing criminals to keep the proceeds of crime by choosing to go to jail instead.

The Public Accounts Committee said just 26p in every £100 of criminal proceeds was clawed back by authorities last year.

'Veneer of respectability'

The Home Office believes too many people are helping criminal gangs by not asking questions about why their services are required before denying any knowledge when cases reach court.

It is hoping to target people such as couriers or van hire companies helping to move counterfeit goods, or lawyers and accountants who assist criminals with services such as writing up contracts.

It says the new offence would also target the "Mr Bigs" in charge of criminal networks who do not always "get their hands dirty".

Those convicted under the new offence would face up to five years in jail and could be subject to further civil measures.

The Home Office also says greater powers will be given to the National Crime Agency and the police to seize criminal assets more quickly and close loopholes used by criminals to get round confiscation.

There is currently £1.48bn outstanding in unpaid confiscation orders but only £746m of criminal assets have been seized, which the government says is a record amount.

Victims of crime have received £93m since 2010.

Home Office Minister Karen Bradley said: "Nobody is above the law. But for too long corrupt lawyers, accountants and other professionals have tried to evade justice by hiding behind a veneer of respectability.

"This new offence sends out a clear message to those individuals - if you are helping to oil the wheels of organised crime, you will be prosecuted and face being jailed."

The Home Office says it will legislate on the measures as soon as Parliamentary time allows.

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EU urges UK to overhaul council tax

3 June 2014 Last updated at 09:23

The European Commission has called on the UK to raise taxes on higher value properties, build more houses and adjust the Help to Buy scheme.

The commission said council tax bands should be revalued, which would put up bills for some people.

Each year the commission offers member states advice intended to help ensure long-term growth.

The Treasury said that as one of the fastest growing economies, would listen to the commission with interest.

In far-reaching recommendations the European Union's executive body also said the UK should prioritise capital spending, affordable childcare, bank lending to small firms and making the planning system more predictable.

'Price increases'

On housing, the commission urged ministers to "deploy appropriate measures to respond to the rapid increases in property prices in areas that account for a substantial share of economic growth in the United Kingdom, particularly London".

The three-year Help to Buy mortgage guarantee scheme, announced in the 2013 Budget, is designed to make it easier for people to get on the housing market.

Some housing experts have expressed concerns the scheme has contributed to double-digit prices rises seen in London over the past year, pushing properties further out of the reach of first-time buyers.

But figures released last week showed that 94% of the 7,313 home purchases funded through Help To Buy so far were outside London while more than 80% of those assisted were first-time buyers.

The commission said: "Action is needed to further boost the supply of houses - by creating appropriate incentives to raise supply at the local level.

"The authorities should continue to monitor house prices and mortgage indebtedness and stand ready to deploy appropriate measures, including adjusting the Help to Buy 2 (loan guarantee) scheme, if deemed necessary."

The Commission also said reforms to the taxation of land and property should be considered "to alleviate distortions in the housing market".

"At the moment, increasing property values are not translated into higher property taxes as the property value roll has not been updated since 1991," it said.

"Taxes on higher value property are lower than on lower value property in relative terms due to the regressivity of the current rates and bands within the council tax system."

'Regressive'

It also recommended that "distortions in property taxation" could be addressed by "regularly updating the valuation of property and reduce the regressivity of the band and rates within the council tax system".

The commission praised the UK for extending childcare provision, making benefits changes and providing more incentives to work but said more should be done on apprenticeships and skills.

"With these recommendations, the commission is pointing the way forward," Commission President Jose Manuel Barroso said.

"We believe that member states must now play their part in seeing these reforms through, even if we know that sometimes they are politically unpopular," he said.

The BBC News Channel's chief political correspondent Norman Smith said David Cameron and George Osborne were likely to be "quietly fuming" at the wide-ranging critique of government policies at a time ministers were presenting the economic recovery as a success story.

Aside from the idea that the UK must build more houses, which the government accepts, the rest of the advice was likely "to end up in the bin", he added.

Norman Smith said many Tory backbenchers were already "spoiling for a fight" over Europe and this was likely to make matters worse at a time when the UK was involved in a stand-off over who should lead the Commission.

'Aspirational'

Douglas Carswell, the MP for Clacton, told The Times that an unelected group of officials could not tell the UK how to spend its money while colleague Dominic Raab said the chancellor should treat the Commission's advice as "spam when it arrives in his inbox".

Eurosceptic body Business for Britain said the European Commission should "spend more time worrying about how it makes the EU more competitive rather than suggesting how to hamstring the UK economy with high taxes".

A Treasury spokesman said: "Figures last week showed Help to Buy has helped thousands of first time buyers on steady incomes buy properties and finally realise the dream of home ownership.

"It's an aspirational policy that will remain a key part of our economic plan."

He added: "We are the first to say we must be vigilant and not repeat the mistakes of the past which is why we specifically gave the Bank of England powers to intervene in the housing market.

"They should not hesitate to use them if they see fit."

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