Brown in finance crisis talks

Tuesday 28th October 2008, 8:51AM GMT.

Gordon BrownGordon Brown will fly to Paris this evening for further crisis talks on the global financial meltdown with French President Nicolas Sarkozy.

Amid further polling evidence that the Prime Minister’s standing has been boosted during the crisis, the two leaders will discuss plans for a co-ordinated worldwide response to the situation.

Mr Brown has been in regular contact with other world leaders and the managing director of the International Monetary Fund, Dominique Strauss-Kahn, as well as with Mr Sarkozy, who is the current president of the European Union.

A ComRes poll published today shows a further narrowing of the gap between the Tories and Labour – now down to eight per cent compared with the 20-point lead enjoyed by the Conservatives two months ago.

The poll for The Independent puts the Conservatives on 39 per cent (down two), Labour on 31 (+2), and the Liberal Democrats on 16 per cent (-2).

If repeated at a general election, David Cameron would be leading the biggest party in the Commons but would not have enough MPs for an overall majority, and the Lib Dems would hold the balance of power.

The Government will make further announcements this week about the action it will take to ease the UK economy through the recession.

After Mr Brown’s declaration yesterday that the Government would increase borrowing, Chancellor Alistair Darling is expected to announce changes tomorrow to the Treasury’s fiscal rules in a move which will effectively shift the goalposts to sanction the greater debt burden.

Then on Thursday fresh help for small businesses is expected to emerge from a meeting between Mr Darling, Business Secretary Peter Mandelson and the president of the European Investment Bank.

The Federation of Small Businesses is urging the creation of a £1 billion “survival fund”, funded by the EIB and the Treasury, to save threatened jobs.

By London Editor John Hipwood



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