Planning restrictions on home and business extensions are to be eased by the Government as part of plans to help kick-start the economy.

David Cameron and Nick Clegg will announce the news later.

The coalition wants to make it easier for tens of thousands of families and companies to expand their properties, giving a much-needed boost to economic activity.

Another 16,500 first-time buyers are also to receive help getting on the property ladder, under an extension of the FirstBuy scheme to be announced by the coalition.

Would-be homeowners without a deposit are given an equity loan of up to 20 per cent of the purchase price under the scheme.

The Prime Minister will say: "This Government means business in delivering plans to help people, build new homes and kick-start the economy."