Mr Speaker, the economic recovery must support our environmental objectives - not come at its expense.

Government policies will drive more than £50 billion of investment and activity in the low-carbon sector over the next three years.

This year we became the world-leader in offshore wind energy capacity.

But we must make even more of our transition to a low-carbon world.

As part of the commitment to bring capital spending forward, the government will invest £535 million more quickly on energy efficiency, rail transport, and environmental protection.

This will mean more homes benefiting from better heating and insulation, better flood defences and 200 new trains.

One of the many steps we are taking to secure high-value green-collar jobs - a potential one million jobs in low carbon industries in the next 20 years.

I have one further announcement. Renewable energy along with nuclear power will play an increasing role in meeting our energy future.

I can announce today that the Government will extend the Renewables Obligation for an additional ten years to 2037.

By requiring energy companies to generate a share of energy from renewable sources, the Obligation will underpin investor confidence and support the development of renewable energy.

We are taking the right long-term decisions to protect the environment, create low-carbon jobs and provide energy security.

Mr Speaker, I want to take steps to improve the supply of mortgages, avoid repossessions, and to increase the number of new homes.

Today, I can set out proposals to do this.

The current problems in the housing market are a result of the credit crisis which has drastically reduced the opportunities for people to get a mortgage loan.

Last month, I took decisive action to recapitalise the banks so they can maintain the availability of lending including mortgages.

Today I welcome the publication of Sir James Crosby’s report on finance in mortgage markets.

His principal recommendation today is that the Government support the mortgage market by providing, for a temporary period, guarantees for securities backed by new mortgages.

I share Sir James’s concerns about the availability of mortgage finance.

To implement Sir James’s recommendation, the Government would need to obtain State Aid approval from the European Commission and resolve some technical and practical considerations.

But we will proceed to work up a detailed scheme based on his recommendations and seek State Aid approval to proceed.

I will also take into consideration the interaction between this proposal and the Credit Guarantee Scheme. I will report back by the Budget.

Mr Speaker, I am setting up a new body - the Lending Panel - which will monitor lending to both business and households.

It will bring together the Government, lenders, trade bodies, consumer groups, regulators and the Bank of England to monitor lending levels and practices by banks.

And we intend to consider how else we can help ensure that those in work but facing financial difficulties can remain in their homes.

It is not just the availability of new mortgages which is a problem in the housing market. It is also fears about meeting the cost of existing home loans.

Mr Speaker, it is right that in these cases repossession should be the last resort. I am pleased to say that this has been recognised by the lenders.

The major lenders have agreed today that, where someone is facing repayment difficulties with their home mortgage, they will wait at least three months after the borrower falls into arrears before initiating repossession proceedings.

This will give homeowners time, to work with lenders, to find a solution.

And I also welcome the commitment from lenders to explore all possible options, including accepting a minimum payment or mortgage rescue products, before and after homeowners get into difficulties.

It is also important, Mr Speaker, that families worried about their finances and mortgages can get expert and impartial advice.

So I am announcing today £15 million of new funding for free debt advice, available to everyone, regardless of circumstances, available across the country.

Mr Speaker, I intend to take two further steps to help homeowners facing financial difficulties.

First, in September I extended the Support for Mortgage Interest scheme which covers mortgage interest payments for those who have lost their jobs.

And today I can announce we will also increase the upper limit of the scheme, for mortgages up to £200,000, from the present limit of £100,000.

This will help ease worries for homeowners who have lost their jobs as they look for new employment.

I have also agreed that, for six months, the level of interest rates covered by the scheme will remain, despite the base rate fall, at just over 6 per cent.

Second, I can also announce new mortgage support for people in work.

In September we set up a Mortgage Rescue Scheme, helping vulnerable homeowners facing difficulties stay in their homes.

Today I am extending this scheme, so it will also cover those at greater risk as a result of taking out second mortgages.

Together, this provides help against repossession worth £200m.

Mr Speaker, first-time buyer demand, and long-term housing supply, are the two essential cornerstones of the housing market.

In September, to boost the market as a whole, I agreed that £700m of Government spending for new social rented homes and shared equity schemes should be brought forward to this year and next.

Today, as part of the acceleration of capital spending, we will bring forward an additional £775m this year and next to invest in thousands of new and modernised social homes as well as regeneration projects.

Overall, this is a package of support for housing worth a total of £1.8 billion.

Support which can only be provided because I have decided we must act to give real help to people.

It will help homeowners of today stay in their homes - and help the homeowners of tomorrow buy their first home.

Mr Speaker, as the economy slows, it is crucial that the Government minimises the impact on employment.

Unemployment has started to rise and people’s worries have increased about losing jobs and the difficulty in finding another one.

I am determined to do what I can to ease these concerns and to help those who are made redundant move quickly into a new job.

The evidence shows that the longer people are out of work, the more difficult it becomes to re-enter the labour market.

Since 1997, we have made good progress in offering people the individual support they need to find a new job.

We halved the time it takes to find new work.

Even as unemployment has been rising over the last three months, 1.2 million people have found new jobs.