Cameron: Brown's reputation is bust

It would stop governments running up excessive debts while giving the Bank of England new powers to rein in reckless lending by banks, he said.

The rules, which require the Government to balance the books over the economic cycle and keep state borrowing below 40% of national income, have formed the cornerstone of Mr Brown's economic policy both as Chancellor and Prime Minister.

But Mr Cameron said they were now "discredited" by the increasing levels of national debt and Government borrowing.

He set out Tory plans for a new fiscal framework which he said would help Britain through its current financial crisis and prepare it to deal with future shocks to the global economy.

Addressing the Tories' annual conference in Birmingham, Mr Cameron borrowed Mr Brown's often-repeated "no more boom and bust" slogan to send a message to the Prime Minister: "You have had your boom and your reputation is now bust."

He added: "We need to call time on this dreadful situation of private indebtedness and state indebtedness. That is what this plan sets out.

"This is the end for the big-spending, big-taxing, recklessly borrowing, big, bossy, interfering government that promises so much and delivers so little.

"People in this country are crying out for change. We have a plan for change, so let's show them that we can be that change."

Mr Cameron launched a "Reconstruction Plan" setting out a new mandate requiring governments to reduce debt as a percentage of national income and balance the current budget over the economic cycle.