Tough new rules for the banking industry, including fines for individuals, have been unveiled in the Queen's Speech.
Her Majesty attended Parliament this morning to set out the government's legislative programme for the coming session.
"By the active creation of jobs, restructuring the financial sector, strengthening the national infrastructure and providing reasonable investment, my government will foster growth and employment," she said.
The speech, written by the government, also contained new legislation to ensure the budget deficit is cut by half.
"Legislation will be brought forward to strengthen governance of the financial sector and to control the system of rewards," the Queen said.
"As the economic recovery is established, my government will reduce the budget deficit and ensure national debt is at a sustainable level.
"Legislation will be brought forward to halve the deficit."
It is expecte the new laws will strengthen the regulatory role of the Financial Services Authority, allowing it to suspend individuals as well as firms for misconduct.
There will also be new penalties for individuals who should have sought approval to perform a controlled function but did not do so.
There will be new laws on digital infrastructure, to "deliver competitive communications and enhance public service broadcasting".
New 'demonstration' carbon capture and storage coal power stations will go ahead and the government "will respond to proposals for high-speed rail services between London and Scotland".
There will be new legislation to improve protection against flooding and to protect water supplies.
The Equality Bill will be considered in the new session. It will "introduce transparency in the workplace to help address the differences in pay between men and women".
The government commitment to abolish child poverty by 2020 will be made law.
Legislation to ensure that agency workers have a right to equal treatment with permanent staff on pay, holidays and other basic conditions will be introduced.
Draft legislation on proposals for a reformed second chamber of Parliament "with a democratic mandate" will also be brought forward.
A bill will be introduced to strengthen the law against bribery and there will also be a bill to ban cluster munitions.
Draft legislation will be published to make binding the government’s commitment to spend 0.7 per cent of gross national income on international development by 2013.
