Gordon Brown is expected to scrap a series of controversial policies following disastrous local election results.

The Prime Minister could veto plans for a national pay-as-you-throw bin scheme and drop a deeply unpopular 2p rise in fuel duty.

There is also speculation that he will act to keep food costs down, as well as introducing help for home-owners threatened with repossession and an extension of shared equity schemes for first-time buyers.

The response comes amid heavy sniping from panicky Labour backbenchers, some of whom have demanded that Mr Brown steps down unless he can turn things around quickly.

Mr Brown has insisted he does not expect a challenge to his leadership, despite Labour taking just a 24 per cent share of the vote in Thursday's elections - its worst result for 40 years.

Tony Lloyd, chairman of the Parliamentary Labour Party, said the only MPs who wanted to depose the leader were "malicious" or had "personality defects".

"Outside of those who have their own personal malice towards Gordon, or the odd one with personality defects there isn't a challenge to Gordon Brown," he said.

"What there is is a demand of Gordon Brown to begin to do what Labour MPs have been saying to him, to make sure that the policies are consistent with Labour's overall position as a party of fairness and social justice."

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