Brown moves to allay fears of economic turbulence ahead

British prime minister Gordon Brown and chancellor of the exchequer Alistair Darling have assured Britons that the UK is "better…

British prime minister Gordon Brown and chancellor of the exchequer Alistair Darling have assured Britons that the UK is "better placed than most" countries to survive financial turbulence across the globe in the coming year, writes Frank Millar, London Editor.

With their conduct of the economy vital to Labour's re-election prospects, Mr Brown also vowed to keep inflation under control, so permitting interest rates to fall, while floating plans for three-year public-sector pay deals as part of a necessary "platform of stability" in face of the pressures ahead.

During a Downing Street press conference, the prime minister suggested the opposition parties did not want "to talk about the big issues" facing Britain, whereas he would eventually be judged on whether he had made "the right choices" for the country.

But when asked what lessons he had learned from the difficulties of recent months - and if he would confirm summer 2009 as the last likely date for a general election - a smiling Mr Brown replied that he had learned it was wise "not to speculate about election dates".

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Mr Brown continued smiling when asked whether he was experiencing a "Hillary Clinton factor", with voters deserting him, following yesterday's opinion poll finding that Conservative leader David Cameron has overtaken Mr Brown on the question of the leadership qualities required to be prime minister.

After entering Number 10 six months ago, Mr Brown led Mr Cameron by 56 to 32 per cent, whereas Populus yesterday gave Mr Cameron the advantage by 44 to 40 per cent.

Insisting "nobody takes one poll seriously", Mr Brown replied: "I'll be judged on whether we make the best choices for the future of this country."

The prime minister also signalled his belief that this would be "an important year for the Union" and unity of the United Kingdom, as he declined to say whether he shared Scottish Labour leader Wendy Alexander's enthusiasm for increased financial powers for the Scottish parliament.

Mr Brown stressed that two-thirds of Scottish voters supported parties committed to remaining within the UK, and said he would not prejudge an ongoing debate that should be "about responsibility and accountability for money spent".

Mr Brown also indicated some interest in a bipartisan approach to the constitutional issue, noting that Scottish Labour, Conservatives and Liberal Democrats had already come together to support a constitutional commission to counter the SNP executive's proposed "national conversation" about independence.

Responding to Mr Brown's calls for wage restraint, some trade unions warned of a possible "collision" over plans to keep public-sector pay rises to 2 per cent, while the TUC's Brendan Barber said long-term pay deals would only be possible if government could give workers "real confidence" that their living standards would be protected.