Gordon Brown: 'I have the character to lead us out of recession'

Gordon Brown declared today that he had the "character" to lead Britain through to economic recovery as he warned that "ideologically-driven" Tory plans for cuts risked tipping it back into recession.

The Prime Minister used a speech to a City audience to set the stage for a May 6 general election, announcing that the Budget would be held in "two weeks' time" - taking it to March 24.

He insisted that it was not a matter of voters choosing between "policy" and "character", as the two issues were inextricably linked.

"It is for other people to judge but I believe that character is not about telling people what they want to hear but about telling them what they need to know," he said.

"It is about having the courage to set out your mission and the courage to take the tough decisions and stick to them without being blown off-course, even when the going is difficult.

"For better or for worse, with me what you see is what you get."

Mr Brown said that the Government remains committed to halving Britain's record £178 billion deficit within four years.

He announced a "pay freeze" for senior staff in the Civil Service, the military top brass, judges, and consultants, GPs, dentists and senior managers in the NHS.

Following on from the freeze on parliamentary and ministerial salaries for all Government ministers which he announced last week, Mr Brown said the curbs on public sector pay would save more than £3 billion by 2013-14.

However he stressed that while the worst of the recession is over, the economic recovery remains "fragile" and could be undermined if spending cuts were pushed through too quickly.

"In my view we are nearly there in repairing the global financial system. But there is nothing pre-ordained or automatic about the upturn, either here or around the world," he said.

"While we have come through the worst of this dreadful storm, the waters are still choppy. There are still real risks to the recovery."

He said withdrawing the Government support put in place after the financial collapse of 2008 "too rapidly and recklessly" could still drive the UK back into recession.

"Do we let the progress of recovery be overwhelmed by an ideologically driven programme to cut the responsibilities of government regardless of economic circumstances - or do we hold firm to our carefully constructed deficit reduction plan?" he said.

Mr Brown emphasised the need for international reform of the banking system to continue, establishing a new relationship between the banks and the wider society to deliver "a fairer balance between risks and rewards".

He said a levy on the banks seemed likely to be "the most practical approach", with the proceeds going to national governments to use to pay down debts or set aside in dedicated insurance funds.

The Prime Minister said the economy was at a "crossroads" - both internationally and in the UK - and promised that the Government would be "swift and unwavering" in its actions to protect the recovery.

"The stakes are high. We dare not risk the recovery. For our task above all else is to preserve and expand the jobs - and lift the standards of life - of the British people," he said.

"We are weathering the storm; now is no time to turn back. We will hold to our course. And we will complete this mission. We have got through this storm together but there are still substantial risks ahead. There will be bumps in the road.

"And I believe the only way to overcome them is by displaying the same strength and resolve as we did during the crisis. I will not let you down."

Liberal Democrat Treasury spokesman Vince Cable said: "Gordon Brown's speech shows he is leading with a weak hand.

"It's very difficult to see how the man who claimed to have abolished boom and bust can campaign on his stewardship of the economy after the greatest bust for decades.

"The only reason he is, of course, is because the Conservatives are even worse. The only consistent thing about their economic policy is that they have been consistently wrong.

"The Budget must clearly spell out where Labour intend to make spending cuts in order to tackle the budget deficit. All we have seen from the Prime Minister today is more waffle.

"Gordon Brown admits that there are bumps in the road ahead. The public know that and expect all parties to follow the Liberal Democrat lead and tell them where the bumps are and how we will be navigating our way over and around them."