Blair unveils plans for 'bold' third term

With his majority cut, Blair must tread carefully to prevent Labour rebels from defeating his policy and seriously damaging his authority. Picture / Reuters

LONDON - British Prime Minister Tony Blair will unveil his plans on Tuesday for what should be his most challenging parliamentary session yet after voters, many angry over the Iraq war, more than halved his majority this month.

The agenda for a third term -- to be presented to parliament by Queen Elizabeth at 11.30am (10.30pm NZT) -- could mark the prime minister's last chance to secure his legacy by driving through radical public service reforms before stepping down.

But Blair's fate lies in the hands of Labour party rebels.

Defeat or a narrow win on key bills could fatally undermine the power of a leader who already risks becoming a lame duck after he said he would not stand for re-election, analysts say.

Eager to show he has not run out of ideas, Blair will unveil some 40 bills.

While Blair has said he wants to serve a full term of four to five years, many analysts say he could go within two years.

The legislative agenda is packed with contentious policies covering the areas of health, education, crime, terrorism, asylum and immigration, and work and life balance, among others.

Key to what Blair has said would be a "bold" programme is the reintroduction of a bill for compulsory identity cards aimed at stopping public services abuses and fighting terrorism.

But with his majority cut to 67 from 161, Blair must tread carefully to prevent a hardcore group of 30-40 Labour rebels from defeating the policy and seriously damaging his authority.

Controversial policies on education and anti-terrorism only scraped through in the last parliament.

The government hopes a slim majority will tame rebels.

"We have a very healthy majority and I look forward to our legislation getting through," Foreign Secretary Jack Straw said on Monday.

But ministers have signalled they may compromise on the ID cards bill to ensure it does not fall prey to rebels, many of whom blame Blair and Iraq for the reduced majority and want him to hand over to finance minister and heir apparent Gordon Brown.

Other proposals will include a tightening of the asylum and immigration system with a points system for migrant workers, measures to get Britons off incapacity benefit and into work, and plans to cut the cost of red tape on business, aides say.

Blair is also expected to plough ahead with changes to schools and hospitals that give greater influence to the private sector -- a move that irks Labour left-wingers.

There will be plans to tackle hooligans and reduce gun and knife crime. A raft of family friendly legislation and a ban on smoking in enclosed public places are also in the pipeline.

Another bill will prepare for a referendum on the European Union constitution. Many analysts believe the EU treaty vote, expected in 2006, could prompt Blair's departure, win or lose.

- REUTERS