The usage of short prison sentences will be reduced and community punishments will be strengthened in a bid to tackle the 'crisis' in prisons.

Jail terms of less than 12 months will be restricted, except in exceptional circumstances, and an American style earned release program will see well behaved inmates released earlier. Community sentences could also see criminals banned from pubs, concerts and sports grounds, with an increased use of drug testing.

The sentencing bill is expected to be introduced in the coming weeks after MPs return to the Commons from their summer break in September. It will implement many of the recommendations from the review of the system carried out by former Tory justice secretary David Gauke.

The plans are expected to include restrictions on the imposition o

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