Brown 'to focus on economy'

Gordon Brown has insisted that he is the "best-placed" person to steer Britain through the current economic crisis.

Speaking after the Bank of England governor warned that there was a real risk of recession, the prime minister said on Thursday that he would "get on with the job".

He also told BBC Radio 4's Today programme that the UK would be able to cope with recession as long as the mistakes made by the Conservative government in the early 1990s were avoided.

"We will do everything we can over the next period of time to take Britain through what is a difficult time for every economy around the world," he said. "I believe that is going to be the central issue and my immediate priority over the next few weeks and months."

Brown was speaking after unveiling his draft Queen's speech on Wednesday, which included measures to "personalise" public services and help first-time buyers, and increase access to training.

His leadership has been hit by Labour's poor performance in the recent local and London elections, as well as the row over the abolition of the 10p tax band.

But asked whether it was time for him to stand aside, the prime minister said: "There is a job to do. I have had experience in the last 11 years of building a strong economy in this country.

"The reason (the economy) is going wrong is international factors that we have had to deal with and I am probably best placed to deal with these issues because of what I know about dealing with other countries on oil and other issues.

"Of course there are many people that can take over, but I think I can help steer this economy through difficult times and make sure we do the best by Britain in difficult world circumstances."

Mervyn King warned on Wednesday that the economy was "travelling along a bumpy road".

"The nice decade is behind us," he said, predicting that inflation would likely increase to 3.7 per cent.

But Brown expressed hopes that the Bank of England's monetary policy committee would cut interest rates again.

"I hope we will be able to do so, but I have always said that this is a matter for the Bank of England," he said.

"(Mr King) implied that it is difficult to cut interest rates in a time of rising inflation. I want interest rates to be able to come down if we can keep inflation under control.

"What we are trying to do as a government to make it possible to cut interest rates includes keeping public sector pay under control."