Defiant Brown has vision of 'stronger, fairer country'

Dogged by record low poll ratings and Cabinet disquiet over his leadership, the Prime Minister's latest relaunch saw the entire Cabinet trek with him to the West Midlands.

Downing Street organised the first Cabinet since 1921 to meet outside London to symbolise Mr Brown's intention to be seen meeting ordinary voters.

Held at the Birmingham International Conference Centre, it was preceded by a staged discussion between ministers and the public about issues such as crime and healthcare.

By coincidence, most of the Cabinet found themselves sharing a train carriage with Tory leader David Cameron, who had a BBC camera team following him to Birmingham for a documentary.

"There was surprise on both sides - the carriage was packed with politicians and their aides," said one. Mr Brown travelled up by a separate train to visit the Jaguar plant at Castle Bromwich, where he launched a policy paper on manufacturing industry.

Despite the looming recession, Mr Brown signalled he would put the economy at the heart of his fightback and allies stressed that it would strengthen over the next 18 months in time for a general election.

He also seized on America's decision to nationalise two huge mortgage groups, stressing that it underlined that Britain was not unique in facing the global credit crunch. The £200 billion rescue of Freddie Mac and Fanny Mae is the biggest ever state bail-out and confirms Chancellor Alistair Darling's fear that the world is facing the worst financial squeeze for decades.

Speaking at the meet-the-public session, Mr Brown painted an optimistic view of the economy bouncing back from the global slowdown.

"We can do well indeed, but we have got to work out together how we can make our way in what is a new world of new change that is hitting all of us," he said.

Mr Brown also tried to regain the political initiative by building on the Labour Party silence that greeted calls from Charles Clarke for him to "stand down with honour".

Aware that fellow ministers and MPs are wary of launching a leadership putsch, he effectively issued a "back me or sack me" message.

In a foreword to a Labour policy report to the Cabinet, Mr Brown wrote: "Meeting this challenge will not be easy and it will not happen overnight. There are no easy or quick answers. It requires leadership, squaring up to hard truths, being open with the British people about the choices we face, and making tough decisions on priorities for public spending."

In contrast to Mr Darling's gloomy message, Mr Brown painted a much more optimistic picture. He said: "I do not underestimate these challenges but I believe that Britain's future is bright. We will bring resolution to the task and determination to build, brick by brick, the foundations for success in this new world."

Referring to the personal tragedies he has faced in his life - such as the loss of an eye as a teenager and the death of his daughter Jennifer - Mr Brown made clear he felt he would respond in the same way to the Government's troubles. "My own response to the great challenges in my own life has been to confront them, resolute in the belief that there would always be something that could be done to overcome them," he said.

Mr Brown decided to act after warnings from even his closest allies that he needed to "raise his game". He has been urged to ration his TV appearances amid fears that he pops up too often with brief recorded comments that make him look "stern". One minister-said: "He has been told bluntly what he is doing wrong and he is trying. Appearing less on telly will help."

Although Foreign Secretary David Miliband sought to ease tensions by endorsing Mr Brown in public, his Cabinet ally John Hutton appeared to undermine the Prime Minister.

Asked if he backed Mr Brown to stay as Premier, Mr Hutton said he backed "the work of the Prime Minister". Mr Miliband, however, praised Mr Brown's "vigour and determination".