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Brown 'standing firm' on economy Brown 'standing firm' on economy
(30 minutes later)
Prime Minister Gordon Brown says he will not be diverted from taking "unpopular" decisions to ensure Britain gets through the global credit crunch. The prime minister says he will not be diverted from the "right long term decisions" for the UK's economy even if they are "unpopular in the short term".
Mr Brown says he recognises people's concerns in trying to get a mortgage. Gordon Brown told the BBC he wanted to show people worried about their homes and jobs that the "economy is safe for them over the next few months".
But he said "a range of measures" to get confidence back in the housing market were discussed in a 90-minute summit at Number 10 with bank chiefs. He spoke after discussions at Number 10 with bank chiefs over measures to boost confidence in the housing market.
Afterwards the Bank of England said a further £15bn was being put into the banking system to ease the crisis. The Bank of England has also pumped £15bn more into the banking system.
Number 10 said the talks - with bosses from Lloyds, Barclays, HSBC and Royal Bank of Scotland - were not a crisis summit and had been in the prime minister's diary for some time.Number 10 said the talks - with bosses from Lloyds, Barclays, HSBC and Royal Bank of Scotland - were not a crisis summit and had been in the prime minister's diary for some time.
Mr Brown said discussion included measures to ensure banks pass on the Bank of England's interest rate cut from 5.25% to 5% to mortgage borrowers. Mr Brown said discussion included measures to ensure banks pass on the Bank of England's interest rate cuts to mortgage borrowers.
Sentiment is at a very low ebb and will continue to remain depressed while the economy suffers from this unique liquidity blight Jeremy Leaf, Royal Institution of Chartered Surveyors Worst housing gloom in 30 yearsLord Jones: I believe in BrownUK inflation held steady in March Sentiment is at a very low ebb and will continue to remain depressed while the economy suffers from this unique liquidity blight Jeremy Leaf, Royal Institution of Chartered Surveyors Worst housing gloom in 30 yearsLord Jones: I believe in BrownUK inflation held steady in March
A Downing Street spokesman said the prime minister had "welcomed the opportunity" to talk to a wide range of financiers about the situation, with further discussions set over the coming days. Asked about his recent difficulties - including things like axing the 10p tax rate and public sector pay - Mr Brown said: "I will not hesitate to take these long term decisions - that's what being in politics is about.
He said the financial system was being backed by the Bank of England putting an extra £15bn liquidity into the markets, taking its recent total to more than £50bn. "Of course sometimes it is unpopular in the short term. Sometimes you might get no temporary advantage out of what might be the right long term thing to do."
"We have been working with the governor of the Bank of England for some time on further proposals to support the financial system and help the functioning of the money markets," he said. But he insisted: "We're taking all the measures that we can and we will not be diverted from this as a fundamental priority."
"In particular to help those segments of the market which have been most affected, building on the consultation on medium-term reforms to the banking system which we published in January." He said he recognised that "we've got to show people who are worried about their homes and people who are worried about their mortgages and people who are worried about their jobs that we can ensure that the economy is safe for them over the next few months.
"And that's why we're engaging in discussions with the banks and building societies with a wide range of measures to bring greater confidence to the housing market and I think you'll see them unveiled over the next period of time."
'Insecurities''Insecurities'
The talks come as the Royal Institution of Chartered Surveyors reported that its members had their gloomiest view of the property market since its survey began in 1978. The talks came as the Royal Institution of Chartered Surveyors reported that its members had their gloomiest view of the property market since its survey began in 1978.
The proportion of surveyors claiming prices are falling hit a new high during the month, with 78.5% more saying the value of property had dropped than those who reported a rise, it added. The proportion of surveyors claiming prices were falling hit a new high during the month, with 78.5% more saying the value of property had dropped than those who reported a rise, it added.
HAVE YOUR SAY Gordon Brown does not have the vision, understanding or leadership qualities to get us out of this situation Keith Brown, St AlbansSend us your commentsHAVE YOUR SAY Gordon Brown does not have the vision, understanding or leadership qualities to get us out of this situation Keith Brown, St AlbansSend us your comments
Meanwhile, the Treasury revealed inflation figures for March have held steady at 2.5%, the same as the previous month - above the Bank of England's 2% target.Meanwhile, the Treasury revealed inflation figures for March have held steady at 2.5%, the same as the previous month - above the Bank of England's 2% target.
Mr Brown will travel to the US this week to meet finance chiefs to discuss the global credit crisis.Mr Brown will travel to the US this week to meet finance chiefs to discuss the global credit crisis.
On Monday, he said: "This government is aware of the insecurities people feel... We are going to continue, as we did when faced with difficult decisions in 1998 and 2004, to do everything in our power to keep the economy moving forward."On Monday, he said: "This government is aware of the insecurities people feel... We are going to continue, as we did when faced with difficult decisions in 1998 and 2004, to do everything in our power to keep the economy moving forward."
'Tough line''Tough line'
Mr Brown added that he was "utterly satisfied" he was taking the right steps.Mr Brown added that he was "utterly satisfied" he was taking the right steps.
Chancellor Alistair Darling is to hold a separate meeting with mortgage lenders next week.Chancellor Alistair Darling is to hold a separate meeting with mortgage lenders next week.
David Cameron condemns government "waste"David Cameron condemns government "waste"
Mr Brown said on Monday that tackling the economy was the government's "sole focus" as he sought to fight off Conservative claims that he was to blame for the crisis.Mr Brown said on Monday that tackling the economy was the government's "sole focus" as he sought to fight off Conservative claims that he was to blame for the crisis.
Conservative leader David Cameron accused Labour of having "wasted money on a gargantuan scale".Conservative leader David Cameron accused Labour of having "wasted money on a gargantuan scale".
"What people are really interested in is what would you do for the future and what I'm saying very clearly is that spending needs to be properly controlled," he said."What people are really interested in is what would you do for the future and what I'm saying very clearly is that spending needs to be properly controlled," he said.
Shadow chancellor George Osborne said "the failure of the government's economic policy" was at the root of its problems and claimed Mr Brown's reputation was "in tatters".Shadow chancellor George Osborne said "the failure of the government's economic policy" was at the root of its problems and claimed Mr Brown's reputation was "in tatters".
Liberal Democrat treasury spokesman Vince Cable said he hoped the government had taken "a tough line with the banks".Liberal Democrat treasury spokesman Vince Cable said he hoped the government had taken "a tough line with the banks".
"I would hope the meeting this morning was treated as a crisis meeting because it is a very serious situation," he said."I would hope the meeting this morning was treated as a crisis meeting because it is a very serious situation," he said.