Sarkozy apologises for VAT comments

The remarks in a French television interview five days ago embarrassed the Prime Minister and were seized on by the Tories as fresh ammunition, reinforcing Opposition claims that the Government's tax cuts would not provide the desired boost to the economy.

The Elysee Palace issued a statement heaping praise on Mr Brown and explaining that the President has been in touch with Downing Street to "deplore the manner in which his remarks about the British economy have been reported in the UK".