PM vows to fight 'oil dictatorship'

In a keynote speech to the Scottish CBI in Glasgow, the Prime Minister promised that the Government would do all it could to help families and businesses to pull through the global economic downturn.

After Chancellor Alistair Darling's bleak assessment of the current economic conditions as the worst for 60 years, Mr Brown insisted that he was "cautiously optimistic" about Britain's ability to ride out the storm.

However, he faced a renewed attack on his leadership from former home secretary Charles Clarke who said that he should "stand down with honour" unless he was able to turnaround the fortunes of the Labour Party within a matter of months.

In his speech, Mr Brown sought to calm the fears sparked by Mr Darling's remarks in a weekend newspaper interview which helped to send the pound plummeting on the foreign exchanges.

"Undoubtedly we face a challenging period in the British economy - particularly given our position at the heart of the world's financial markets - and both the Chancellor and I understand the difficulties you face," he said.

"But while never complacent about our economic prospects, I am also cautiously optimistic about the long-term resilience and underlying strengths of the British economy."

He promised further "targeted support" for families struggling with rising food and energy bills, with the Government's much-trumpeted package for tackling fuel poverty due to be published next week.

While people understood that no national government alone could "put everything right that is creating hardship", he said that they did look to ministers to take action to help them through difficult times.

"We will not let them down," he said. "We will do what it takes to bring security to families on modest and middle incomes. And we will ensure that no-one who is prepared to work hard and adapt to change will lose out as a result of global forces."