The sum is part of Labour’s Building Britain’s Future programme, which is seen as an attempt keep its core voters happy ahead of the general election

Prime minister Gordon Brown is expected to pledge £500m towards housebuilding later today and promise more cash for the Homebuy Direct scheme.

The announcements will be part of its Building Britain’s Future programme, which will also set out the Labour party’s campaign pledges on schools and hospitals in advance of the general election.

The cash for housing is being seen as an attempt to prevent Labour’s core vote drifting to the BNP and other fringe parties. The government is expected to lay out plans to give “local” people priority over social housing.

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