PM 'listening to economic concerns'

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As a poll showed most people have no faith in the Government's ability to cope with the current financial turmoil, the Tories said the Prime Minister's economic reputation was "in tatters".

Cabinet allies acknowledged that the country was going through a difficult period after Chancellor Alistair Darling described the present turbulence as "the biggest economic shock since the Great Depression".

But Mr Brown insisted he was focused on addressing the concerns and aspirations of the public.

He said: "We're listening to what the people of this country say to keep inflation low and therefore interest rates low, to make sure we do everything in our power to create the conditions in which these low interest rates are passed on to mortgage holders and to businesses."

His comments came after a Financial Times/Harris poll suggested more than two thirds of voters (68%) are "not confident at all" in the Government's ability to deal with the present turmoil.

Shadow chancellor George Osborne accused ministers of punishing voters with higher taxes just at the moment they needed to be kept down.

In a speech to the Policy Exchange thinktank, Mr Osborne said: "In Britain last week taxes rose on the low paid, on small businesses and on capital gains. Next spring they will rise on family cars.

"What this means is this Government isn't on your side. It is on your back."

Mr Osborne said the pillars of the Prime Minister's economic strategy - stability, prudence and competitiveness - had "collapsed in a heap of rubble". "His economic reputation is in tatters," he added.