Brown warns MPs over pay rise

The Prime Minister said he had rejected the findings of the Senior Salaries Review Body, which is expected to recommend a £6,000 hike for MPs over three years - around 3% annually - when its delayed report is published later this month.

Mr Brown said MPs should show "the same discipline we ask of other people" and restrict themselves to an increase of just 1.9% in their £60,675 basic salary.

But the final decision on the pay rise will be made by MPs themselves in a free vote in the House of Commons, and it is far from certain that they will heed the Prime Minister's call.

Mr Brown's comments came as he used a set of New Year interviews to portray himself as the man to take "big long-term decisions" in the interests of the country in 2008, in an apparent bid to shake off opposition accusations of dithering following the setbacks of the autumn.

He left little doubt that he will give the go-ahead to a new generation of nuclear power stations when the Government delivers its response to a consultation on Tuesday.

And he indicated he was ready to face down environmentalist objections to major infrastructure projects ranging from a third runway for Heathrow to London's Crossrail train link and plans for three million new homes in England.

Mr Brown acknowledged that the world economy faces a difficult year ahead, but said he was "cautious but positive" about the UK's prospects of weathering the storm, thanks to its record of low inflation, high employment and economic stability over the past decade.

Pay restraint was key to Britain's ability to deal with the turbulence expected in 2008, but more generous settlements will be available to police, nurses, teachers and servicemen in later years, he said.

Mr Brown told BBC1's Andrew Marr Show: "Government ministers must have a rate of pay increase that is below 2% - 1.9%. At the same time, my recommendation is that that is what goes for MPs. We must show exactly the same discipline that we ask of other people. It is very important in this year that we break the back of inflation. In future years, we can do better by the police, we can do better by nurses, we can do better by teachers, we will do better by the Army."