Tony Blair has approved a long legislative programme containing 40 bills, many of them likely to attract opposition from rebellious back benchers.

At Thursday's Cabinet meeting, the first since the election, ministers agreed the contents of the Queen's Speech to be delivered next Tuesday.

Plans for identity cards are likely to be the first test of the prime minister's reduced majority, cut to 67 at the election.

"This is the prime minister's last stand," one "senior Labour figure" told the FT.

"It is all confidence, confidence, confidence."

Other legislation will crack down on binge drinking, ban knives, and target loan sharks.

The prime minister also promised more far-reaching changes in health and education, with white papers before the autumn outlining further proposals "to develop more personalised public services" in the NHS and schools.

Meanwhile, Labour's biggest donor warned Tony Blair he survived defeat at the election by a whisker, and urged the prime minister to set out a process for transferring power to his successor sooner rather than later.

Derek Simpson, the Amicus general secretary, said he had drawn up a 35-point plan for pro-worker legislation in the next 18 months. His union gave Labour £2m to fight the election, including £1m in cash.