Brown has 'left Britain open to cash crisis' say Tories

They said the man known for his "prudence" and lauded for a decade of economic stability had been guilty of "economic incompetence" and "financial incontinence".

Shadow Chancellor George Osborne launched the onslaught on the Prime Minister in a talk to the London School of Economics.

He said Mr Brown had failed to prepare the country for what are predicted to be tough times ahead.

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"That is economic incompetence. And now we must face the consequences," said Mr Osborne.

The Shadow Chancellor claimed Mr Brown had actually presided over a decade of financial profligacy that meant there was no cash to pay public sector workers.

"The truth is that, thanks to Gordon Brown's economic incompetence, Britain has run out of money," he said.

And he promised to reform economic institutions to restore the independence of the Bank of England and make it more difficult for governments to bend the rules.

The bitterly-worded attack marked the start of a Tory campaign, fronted by the Shadow Chancellor and David Cameron, to persuade voters that Mr Brown is "economically incompetent".

Mr Osborne promised to raise deposit insurance from £35,000 to £50,000 to protect more than 90 per cent of account holders from a crisis similar to Northern Rock.

Singling out Mr Brown's handling of the economy during a decade of uninterrupted growth, Mr Osborne said: "Our Prime Minister was warned in the fat years to prepare for the lean years - but he set nothing aside.

"Now most say the lean years are here, the cupboard is bare and Britain is vulnerable."

He added: "We've got used to Brown boasting about his economic competence.

"But his actions betray him. His economic incompetence and fiscal incontinence have left Britain more exposed than any other developed economy to the current crisis."

Mr Osborne described Mr Brown's claim that the current difficulties on the money markets originated in the United States as "hand wringing".

He said: "We've got used to him taking the credit when times are good and passing off the blame when things turn bad.

"His mantra, repeated in every interview, is that Britain's troubles are all down to problems in the US subprime markets.

"The challenge for a government is to make sure the British economy is well prepared to withstand these inevitable shocks.

"That's what putting economic stability first means.

"Let's be clear: the trigger may have been pulled by American sub-prime lenders, but the gun was loaded at home."

Mr Osborne said Government borrowing last year overshot Treasury forecasts and Mr Brown may have to borrow £50billion this year.

The Exchequer is borrowing about £120million a day, while the Treasury overdraft now stands at £520billion, equivalent to £20,000 per household, said Maurice Fitzpatrick, senior tax manager for accountants Grant Thornton.

"This is the real reason why, the government is seeking to put brakes on public sector pay after years of huge rises," Mr Osborne said.

"Of course, pay restraint is necessary but the Prime Minister insists the single purpose of this restraint is keeping inflation under control."