Labour's long-expected Autumn fightback began with gusto today, with Hazel Blears unveiling the government's plans for the housing market and an announcement on stamp duty.The government plans would provide loans of up to 30 per cent of a new home, interest free for five years, to households with an income of under £60,000. The stamp duty threshold will rise up to £175,000 for one year only. But the announcement suffered an early hit when the Organisation for Economic Cooperation and Development (OECD) said Britain is already in recession. "It never rains but it pours for Gordon Brown," said Liberal Democrat Treasury spokesman Lord Matthew. "While the highly respected OECD is claiming that Britain is in recession, the prime minister admits he doesn't even know where the money for his misguided £600 million stamp duty suspension will come from." The package of measures had been expected for some time by political insiders, with details of state support for those facing repossession being leaked late last week. Today's measures mark the first stage of Gordon Brown's efforts to protect himself against a leadership bid from within the party. A hardcore of MPs, known as the Blairite Taliban, want Mr Brown gone as soon as possible, but the consensus among Labour politicians is that the prime minister should be given until after the party conference to demonstrate an improvement in the party's electoral performance. Stage one begins today, but all eyes will soon be on Mr Brown's speech to the party conference. After that – if he survives that long – comes the Glenrothes by-election. A loss there, in Mr Brown neighbouring constituency, would almost certainly bring the prime minister down. Labour selected its candidate for the by-election last night, opting for Kirkcaldy high school headteacher Lindsay Roy. Today's package follows a Tory announcement on inheritance tax last night, with the party basically doubling the threshold at which couples pay to the Treasury. Previous Conservative plans allowed for a £1 million inheritance tax threshold, but now the party have announced they will double the limit for married couples by allowing £1 million per person. Labour accused the party of giving tax cuts to millionaires. "When hard working families are facing real pressure, how on earth can the Tories justify more tax cuts for millionaires?" asked Yvette Cooper, chief secretary to the Treasury. "David Cameron has clearly tried to hide this but now we know the Tories' priority is to give money to a few thousand of the wealthiest estates in the country. How can this be fair?" Ms Cooper's husband, children's secretary Ed Balls, took to the airwaves last night to try to settle the fallout from chancellor Alistair Darling's incendiary interview with the Guardian over the weekend. Speaking on ITV news, Mr Balls said: "I have no reason to believe there's any prospect in any change in the chancellor… It would be the wrong thing to do." Some analysts believe Mr Darling's comments have actually secured his position. Were Mr Brown to sack him now, it would allow the Conservatives to argue he had been got rid of for telling the truth. Labour are also benefitting from a virtual silence from the Tories on economic issues. Apart from their inheritance proposals and some discussion on stamp duty, the Conservatives have so far failed to unveil a comprehensive economic package.
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