Blair announces plans for 'bold' third term

British prime minister Tony Blair has unveiled a packed agenda for what should be his most challenging parliamentary session …

British prime minister Tony Blair has unveiled a packed agenda for what should be his most challenging parliamentary session yet after British voters, many angry over the Iraq war, more than halved his majority this month.

The programme for Blair's third term - featuring contentious policies ranging from identity cards to new immigration controls - could mark his last chance to secure a lasting legacy before stepping down.

But his fate lies in the hands of Labour party rebels. Defeat on key bills could fatally undermine the power of a leader who already risks becoming a lame duck after he said he would not stand at the next election.

"My government will build on its programme of reform and accelerate modernisation of the public services to promote opportunity and fairness," Queen Elizabeth said in a ceremony in parliament's House of Lords, raising the curtain on a historic third straight term for the centre-left Labour party.

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Eager to show he has not run out of ideas, Mr Blair's agenda contains 45 bills and five draft bills for a long, 18-month session.

The prime minister has said he wants to serve a full term of four to five years, but many analysts say he could be gone by the end of 2006.

His ability to pass legislation with his majority cut to 67 from a huge 161 will define his final years in office.

Plans to introduce compulsory identity cards, aimed at stopping abuses of free public services and fighting terrorism, could face a rough ride from Labour left-wingers.

Controversial policies on education and anti-terrorism only scraped through in the last parliament.

This time round, a hard core of 30-40 rebels, many of whom blame Mr Blair and Iraq for Labour's looser grip on parliament, are spoiling for a fight and want to force a swift handover to finance minister and heir apparent Gordon Brown.