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Brown 'standing firm' on economy Brown 'standing firm' on economy
(20 minutes later)
Gordon Brown has said 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".Gordon Brown has said 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".
The prime minister told the BBC he wanted to show people worried about homes and jobs the economy was "safe for them over the next few months".The prime minister told the BBC he wanted to show people worried about homes and jobs the economy was "safe for them over the next few months".
He spoke after a Downing Street meeting with bank chiefs to discuss way to boost confidence in the housing market. The Bank of England has also put £15bn more into the banking system. He spoke after a Downing Street meeting with bank chiefs to discuss way to boost confidence in the housing market.
The Bank of England has also put £15bn more into the banking system.
Downing Street 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.Downing Street 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 lenders pass on the Bank of England's interest rate cuts to mortgage borrowers.Mr Brown said discussion included measures to ensure lenders 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
Asked about his recent difficulties, including axing the 10p tax rate and arguments over public sector pay, Mr Brown said: "I will not hesitate to take these long-term decisions. That's what being in politics is about.Asked about his recent difficulties, including axing the 10p tax rate and arguments over public sector pay, Mr Brown said: "I will not hesitate to take these long-term decisions. That's what being in politics is about.
"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.""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."
But he insisted: "We're taking all the measures that we can and we will not be diverted from this as a fundamental priority."But he insisted: "We're taking all the measures that we can and we will not be diverted from this as a fundamental priority."
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."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."
'Insecurities''Insecurities'
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 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 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.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 held steady for a second month at 2.5% - above the Bank of England's 2% target.Meanwhile, the Treasury revealed inflation figures for March held steady for a second month at 2.5% - above the Bank of England's 2% target.
Despite the early Easter, the British Retail Consortium said shop sales in March had declined by 1.6% from the same period a year earlier.Despite the early Easter, the British Retail Consortium said shop sales in March had declined by 1.6% from the same period a year earlier.
Director general Stephen Robertson said consumers were making "serious economies" and were "increasingly concerned about the future".Director general Stephen Robertson said consumers were making "serious economies" and were "increasingly concerned about the future".
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.
Chancellor Alistair Darling is to hold separate talks with mortgage lenders next week.Chancellor Alistair Darling is to hold separate talks with mortgage lenders next week.
Former home secretary David Blunkett told BBC Radio 4's The World at One that the abolition of the 10p income tax rate would have a "disproportionate" effect on low earners.Former home secretary David Blunkett told BBC Radio 4's The World at One that the abolition of the 10p income tax rate would have a "disproportionate" effect on low earners.
He added that government had "got to put a package together, a programme together" to help those affected.He added that government had "got to put a package together, a programme together" to help those affected.
Gordon Brown interview in full
Des Turner, Labour MP for Brighton Kemp Town, said "in some respects" he had been disappointed with Gordon Brown's performance.Des Turner, Labour MP for Brighton Kemp Town, said "in some respects" he had been disappointed with Gordon Brown's performance.
David Cameron condemns government "waste"
"He started out with a lovely feeling of collegiality. Since the non-election he really does seem to have gone back to his inner circle rather than others.""He started out with a lovely feeling of collegiality. Since the non-election he really does seem to have gone back to his inner circle rather than others."
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.
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.