Labour sets out agenda

Tony Blair embarked on a high wire balancing act as the Queen's Speech today unveiled a post-election session packed with explosive new legislation.

Some 45 new laws and five draft Bills, including controversial ID cards and reforms to the NHS, schools and benefits, were announced in a mammoth 18-month programme.

With Labour's majority slashed to 67, Cabinet ministers were despatched this afternoon to build bridges with potential rebel MPs.

There was talk of minor concessions being made on some Bills while ministers emphasised their willingness to listen. But from Downing Street there was also a firm insistence that, whatever Labour rebels threatened, there could be no compromise at all on the Government's manifesto commitments.

And in a tactic to flush out troublemakers early in the third term, some of the most controversial laws, including ID cards, will be rushed out in the first few weeks.

The new Bills ranged from plans to reform sickness benefits, allowing lie detectors in sex crime investigations, curbing the sale of knives and imitation guns, antisexism measures, higher speeding fines for the worst offenders, and new arrangements to cut the cost of NHS payouts for mistakes.

Ministers were going out of their way to say they would heed sensible suggestions for changes. Work and Pensions Secretary David

Blunkett defied his usual hardman image to reassure MPs his welfare reforms were not another crackdown on the workshy.

He said: "Don't believe for a minute that the reform of the welfare state for the 21st century is somehow punitive. It is not. It is about 50 years on, taking a real look at what people want."

Labour MPs believe his proposals for reforming incapacity benefit will spark the biggest revolt in the new session. But his softer tone was welcomed by disability campaigners fearing a battle against cutbacks.

Home Secretary Charles Clarke, meanwhile, hinted at a concession on identity cards, including stronger powers to privacy watchdogs.

He promised he would not "ride roughshod" over backbenchers, adding: "We will listen carefully to any comments, objections or proposals from MPs of all parties, including my own."

But he said the Parliament Act would be wheeled out if needed to force through the planned law against religious hatred, which was blocked in the Lords before the election.

A Downing Street source said: "We are open to discussion - but the manifesto will not be compromised in any way."

Labour whips say there is a real danger of some Bills failing to get through the Commons.

They estimate 25 Labour MPs are "serial rebels" who are likely to vote against the Government in major confrontations. That means only a handful of wavering centre-ground MPs could make the difference between a Bill getting through or falling.

One party insider said: "We cannot resort to old tactics now like calling a vote and saying MPs must back it or damage the Prime Minister's authority. Now that he is retiring anyway, it would not work."

Flashpoints include an education Bill giving powers for successful schools to take over failing ones and speeding up the creation of city academies.

A health improvement and protection Bill will ban smoking in enclosed public spaces as well as introducing new controls to stop the spread of MRSA in hospitals

The list also includes a string of Bills that ran out of time before the election, including plans to regulate inter-country adoption, new fines for speeding motorists, and authority for a referendum on the EU constitution.

Among the new measures is a Bill to give powers to prepare for London to host the 2012 Olympics if the bid is successful.