Factbox - Osborne to set out growth plans on November 29

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LONDON | Thu Nov 24, 2011 5:43pm GMT

LONDON (Reuters) - Chancellor George Osborne will unveil long-awaited plans to boost the flagging economy on November 29.

He has already ruled out spending any additional cash and has vowed to stick to a harsh austerity programme aimed at eliminating a record budget deficit, so any stimulus is likely to rely on private sector investment.

Following is a selection of the measures expected to be announced in Osborne's growth plan and autumn statement to parliament on November 29.

INFRASTRUCTURE

The government is expected to try to bring forward around 40 large infrastructure projects, including new railways, roads and energy grid upgrades. Cameron has urged colleagues to do all they can to fix any planning or legal obstacles to major schemes, according to reports.

It is looking into encouraging private sector investment in new projects through infrastructure bonds. These would be aimed at long-term investors such as pension funds, which need a steady rate of return and have been particularly hard hit by a tumble in gilt yields in recent months.

Ministers have given no indication of the scale of any public investment in new infrastructure improvements.

The government has already said it will invest 150 million pounds to improve mobile phone coverage across rural parts of Britain and will announce further measures to improve fast internet access.

HOUSING

Prime Minister David Cameron announced a 400 million pound investment fund to help building firms finance housing development, by reopening stalled building sites which have planning permission and are "shovel ready".

Ministers say the fund will support 32,000 jobs and the construction of up to 16,000 homes.

The government will also back an indemnity scheme to provide up to 95 percent loan-to-value mortgages for new-build properties in England. It could help up to 100,000 homebuyers, with the first loans available early next year.

Publicly owned land may be sold for 100,000 new houses. Developers could be allowed to pay for the land once the homes are sold as part of a "build now, pay later" scheme.

CREDIT EASING

Osborne's headline-grabbing announcement to the annual Conservative Party conference was that the government would help increase lending to small businesses.

Treasury officials have been struggling to flesh out the proposal, but say such a scheme is likely to have an impact on the public balance sheet.

Possible options include the direct purchase of corporate bonds with the finance ministry underwriting the credit risk, co-funding bank loans to small and medium-sized businesses (SMEs), or encouraging the creation of a secondary market for securitised loans to SMEs.

The Confederation of British Industry lobby group has urged the government to develop a mid-cap bond market as part of its credit-easing measures, in order to improve access to loans for small businesses.

COUNCIL TAX FREEZE

The government will freeze local property taxes for a second year running at a cost of 805 million pounds. This will save the average family 72 pounds a year and will be funded by reallocating funding not spent by government departments.

SCIENCE

Britain will invest 50 million pounds in a research hub and 145 million pounds to support high performance computing and associated infrastructure.

ENERGY

The government is likely to announce help for energy-intensive industries hit by a tax on carbon emissions.

The CBI says steel, aluminium and chemical companies are vital to creating a low-carbon economy and should be among those given rebates. The CBI estimates this would cost 300-400 million pounds in 2013 and 600-700 million pounds in 2015.

YOUTH UNEMPLOYMENT

The CBI proposes offering firms 1,500 pounds for taking on an unemployed person aged between 16 and 24 to cover the first year's National Insurance job tax. This would cost 150 million pounds a year. It also suggests freezing youth rates of the minimum wage.

(Reporting by Fiona Shaikh; Editing by John Stonestreet)

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