Ed Davey, energy secretary, plans to start talks next month to discuss the potential of the UK’s first lagoon power project

The coalition government’s pre-election infrastructure spending bonanza will continue on Tuesday with announcements on increased spending on social housing, flood defences and exploratory talks for the first lagoon power project.

The plans, including an innovative scheme whereby the government could act as a direct commissioner of housing, are due to be announced in the 2014 national infrastructure plan prepared by Danny Alexander, the chief secretary to the Treasury.

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