Chancellor Gordon Brown

Gordon Brown's record on the economy has been called into question by a leading think tank.

In its report published on Friday, the Centre for Policy Studies argued that, while the chancellor highlights that the British economy has enjoyed the longest ever period of continuous economic growth, he does not point out that growth rates are still lower than in the US.

The study, entitled Gordon Brown's Boasts, also argues that Britain's position on the international competitiveness league tables has fallen, while there is volatility in some sectors of the economy.

"Clearly there has been growth since 1997 and we are not saying there hasn't been.  Inflation, interest rates and unemployment are relatively low," CPS director Ruth Lea told the BBC Radio 4 Today programme.

"But it is a matter of putting the thing into some sort of context.  The current government is slightly reluctant to see things, perhaps, as they are.  If you compare our GDP growth over time, then the picture looks less bright.

"Since 1997, we have had annual average GDP growth of 2.5 per cent, compared to three per cent in the 1980s.  We hear a lot about how much better we are than the eurozone, which is true of course.  But actually, we have had lower growth than the US, Canada and Australia, and certainly lower growth than China or India.

"Our competitiveness rankings are slipping quite considerably, according to the Institute of Management and Development and the World Economic Forum.  We were fourth in the league in 1998.  By 2003, we had slipped to 15th.  How often do you hear the chancellor boasting about that one?"

Economic secretary John Healey defended the government's record.

"No respectable economist would argue that the government's policy should be to pursue faster growth that is unsustainable, at the expense of economic stability," he said.

"That's what we have done in the past and that is what has caused the boom and bust of the past in Britain.  What businesses value above everything else, of course, for their investment, employment and expansion are decisions which mean we get macro-economic stability and sustained growth.

"That's exactly what we have achieved since 1997 - the only G7 country to grow in every quarter during that period.  Instead of Britain being the most volatile economy, as we were between 1979 and 1997, we are now the most stable."

"It would be foolist to expect the balance of the economy and the performance of each segment of the economy to remain unchanged," he added.

"The most important thing is that the economy as a whole remains stable, which it has done, and that we achieve sustained growth, which we have done."