UK's Brown to focus on public services in final push

* Brown's Labour to focus on education, health, housing

* Government says opposition could cut key services

* But Labour refuses to give spending plan before election

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By Keith Weir

LONDON, June 29 (Reuters) - British Prime Minister Gordon Brown will focus on housing, health and education on Monday when he sets out plans for the final few months of his government before an election that could end Labour's long grip on power.

The election due by mid-2010 is likely to be dominated by debate over how to curb a budget deficit that will reach 175 billion pounds ($288 billion) this year -- more than 12 percent of gross domestic product.

All the main parties have been damaged by a scandal over lawmakers' expense claims, but Labour -- in power since 1997 and now lagging badly behind the centre-right Conservatives in polls -- has been hardest hit because it presided over a discredited system.

Labour says the opposition would make big cuts in core public services if it won the election, but the party also refuses to release its own spending figures.

Business Secretary Mandelson told the BBC government spending plans for the year 2011 onwards would not be set out until after the election because earlier plans would be based on "highly speculative projections of what economic growth will be future years". Labour is hoping Britain will start to pull out of its deepest recession since World War Two by the end of the year, boosting voters' morale and making the budget arithmetic slightly simpler.

"Economic conditions will have eased and the prospects for recovery will be stronger before the election, and I think many will take a more balanced view of the prospects for public spending and investment," Mandelson said in an interview with the Financial Times on Monday.

Mandelson also indicated plans to sell part of postal group Royal Mail [GBPO.UL] were likely to be delayed because it will probably run out of parliamentary time. [ID:nLT611710]

The proposed sale had proved unpopular with Labour members of parliament (MPs) and Brown can ill afford more unrest after facing down a party revolt earlier this month.

Brown will announce his legislative plans in a speech to parliament at 1430 GMT on Monday.

New parliament speaker John Bercow has asked ministers to end the practice of pre-announcing measures in media interviews and much of the detail of what Brown will say has not been disclosed.

Some details have however emerged. The government wants patients suspected of suffering from cancer to be guaranteed the chance to see a specialist within two weeks.

Pupils who fall behind in core school subjects such as English and Maths will be offered one-on-one tuition and there will also be measures to boost the availability of low-cost housing. (Additional reporting by Kate Kelland; Editing by Matthew Jones)