John Prescott yesterday set out details of his £1.1 billion plan to tackle the growing housing crisis, including the construction of 200,000 new homes in the South East.

The deputy prime minister said he would intervene to force local authorities to meet government targets on building new homes.

Prescott said he wanted to provide "decent affordable homes for people wherever they live" - but the Conservatives derided his plans as "Stalinist".

He also unveiled a £350 million bid to speed up the planning system, dropping plans to allow parliament to decide on big infrastructure projects.

The move was welcomed by business groups and environmental campaigners.

But county councils are set to fight moves to give their planning powers to regional bodies.