David Cameron to defy right-wingers as he rejects alternative Queen’s Speech

David Cameron looks set to defy his right-wing Tory backbenchers today with the centrepiece of the Queen’s Speech expected to be Lords reform.

In a move that has already angered many of his supporters following last week’s drubbing in council elections across the UK, the Prime Minister is to offer his Liberal Democrat coalition partners significant constitutional change.

The programme for government, the second chapter in the coalition agreement, will also include banking reform, which is set to be a compromise between the two coalition partners.

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Also set to be on the agenda is the creation of a British version of the FBI to be known as the National Crime Agency, to tackle major crime and terrorism.

Following the furore over phone hacking and press standards, there is also likely to be reform of the Defamation Act.

One of the expected measures which has angered the Lib Dems is a plan for more internet surveillance, which is being championed by Mr Cameron.

The Lib Dems will have to wait until later in the parliament for a bill to recognise gay marriage, while there is also unlikely to be a bill on social care for the elderly despite warnings of a looming crisis caused by the country’s ageing population.

Meanwhile, expected bills on opening up the university sector and preparing for high-speed rail are likely to be delayed.

However, the major clash for Mr Cameron is expected to come over his refusal to accept any of the ideas put forward in an alternative Queen’s Speech published yesterday. The proposals from 20 right-wing MPs, including John Redwood and David Davies, were published on the ConservativeHome website.

They reject bringing elections to the Lords but include English devolution, replacing the Human Rights Act with a Bill of Rights and a referendum on EU membership.

The 15 suggested bills also include major tax cuts for businesses, another income tax cut for the wealthy – bringing the top rate down to 40 per cent from 45 per cent – and an attack on trade unions which would cut the Labour party’s political levy and restrict strike action further.

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Mr Davies, who ran for the leadership against Mr Cameron, said: “We are five-sixths of the government and there should be a reflection of that.

“What a number of backbenchers have heard on the doorstep is ‘Where’s the beef? What is it that’s telling us this is a Conservative government?’.”

Meanwhile Tory backbencher Nadine Dorries added: “Cameron and [Chancellor] George Osborne should be aware: Conservative MPs will not sleepwalk into losing their seats.

“If [Cameron] continues in this vein, the right of the party may well split away, allowing Ed Miliband’s Labour to glide comfortably into Number 10 at the next election. This scenario can be avoided only by removing the men who are so stubborn and arrogant they cannot see the writing on the wall.”

A Tory parliamentary candidate and councillor said: “We took a beating last week. We keep hearing how the country has suffered a major economic heart attack. But where are the ideas to get the country going again? This Queen’s Speech is bereft of big ideas.”

Labour leader Ed Miliband said: “I don’t think Cameron gets it when he has a Queen’s Speech that will not change course on the economy.

“If they don’t find room for action to deal with living standards, energy prices, social care, train prices, then it will be clear they don’t have the right priorities. If there is one message from the local elections it is: you are not standing up for the right people, and you are standing for millionaires.

“At some point, governments have to recognise it is not presentation, it is not the little accidents that happen in government, it is something deep. It is no good the government running excuses; they need to provide answers.”