HIGHLIGHTS-Britain's Brown outlines future policies

LONDON, June 29 (Reuters) - British Prime Minister Gordon Brown outlined future government policies on Monday in an effort to regain the initiative after overcoming a loss of confidence in his leadership.

Below are highlights from his statement:

BRITISH PRIME MINISTER GORDON BROWN

On energy bill

"The new energy bill will enable us to support up to four commercial-scale carbon capture and storage demonstration plants for Britain."

On innovation fund

"It is 150 million (pounds) of public money which will over time lever up 1 billion of private sector investment in bio-technology, life sciences, low carbon technologies and advanced manufacturing."

On jobs:

"As part of the investments we announced in the Budget, one billion (pounds) is being set aside for the future jobs fund that will provide 100,000 jobs for young people with another 50,000 in areas of high unemployment."

On reform of the upper house:

"We will legislate in the next session to complete the process of removing the hereditary principle from the second chamber and to provide for the disqualification of members where there is reason to do so. We will set out proposals to complete Lords reform by bringing forward a draft bill for a smaller and democratically constituted second chamber."

On housing:

"There is also urgent need for new social housing and for new affordable home ownership ... In the next two years, as a result of a reallocation of funds we will more than treble the extra investment in housing from the 600 million (pounds) announced in the Budget to a total of 2.1 billions from today.

"Financing, over the next 24 months, a total of 110,000 affordable homes to rent or buy and in doing so creating an estimated 45,000 jobs in construction and related industries."