Gordon Brown unveils new agenda for government

Gordon Brown today pledged £1bn to create 100,000 jobs for young people and another 50,000 posts in areas of high unemployment as he attempted to revive his political fortunes with a new agenda for the government.

But as the prime minister set out a raft of new policy goals for schools, hospitals, housing, transport and the economy in what amounted to a mini-manifesto, he stood accused of announcing some "rehashed ideas" involving "top-down tinkering".

David Cameron, the Tory leader, branded the Building Britain's Future document a "package without a price tag" and claimed the initiatives had all been announced before.

Brown had hoped his proposals would establish clear blue water between Labour and the Conservatives in the run-up to the next election.

They contained a series of policy shifts designed to give people more power over public services and were expected to form the basis of Labour next election manifesto.

In a statement to MPs, Brown promised broadband for all by 2012, a new technology innovation fund, and a new push to improve transport infrastructure.

Announcing new measures to create jobs, Brown said: "In the last two recessions tens of thousands of young people were written off to become a generation lost to work, a mistake this government will not repeat."

From January, everyone under 25 who has been unemployed for a year will receive a guaranteed job, work experience or training place, Brown said. They will be obliged to accept that guaranteed offer or risk having their benefits cut.

And from September every 16- and 17-year-old will receive an offer of a school or college place, training or an apprenticeship.

Brown said the cost would be met by switching some spending to meet new priorities.

An energy bill will pledge support for up to four commercial-scale carbon capture and storage demonstration plants.

There will be a £150m "innovation fund" for biotechnology, life sciences, low carbon technologies and advanced technologies that would encourage up to £1bn in private sector investment.

The government will also treble investment in housing to £2.1bn. Social housing will be reformed so councils give higher priority to local people.

And the prime minister said there would be a guarantee that nobody needing to see a cancer specialist would have to wait more than two weeks and no one would have to wait more than 18 weeks for hospital treatment.

He also pledged to reform the House of Lords, promising a "smaller and democratically constituted second chamber" with legislation in the next session to remove the last hereditary peers.

"We will not walk away from the public in these difficult times," Brown told MPs.

But Cameron accused the prime minister of "living in a dreamworld", adding: "When is someone going to tell him he's run out of money? What world is he living in? ... This is a package without a price tag, some rehashed ideas and some top-down tinkering."