Brown: US decision 'disappointing'

Washington's decision has plunged the inteernational markets into turmoil
Washington's decision not implement a $700 billion bailout of its banks showed a disappointing lack of decisive action which would not be replicated in the UK, the prime minister has said.Gordon Brown said: "The vote in America is very disappointing. "The governor of the Bank of England, the chancellor and I will take whatever action necessary to ensure continued stability for Britain." Mr Brown attempted to contrast the actions of the British government over Bradford and Bingley, which was part nationalised yesterday, with those in the States. "The stability of our system is something that we are doing everything in our power to maintain. "We have taken decisive action in the last few days and that decisive action has continued over the weekend." Mr Brown said he sent the White House a message calling for "decisive action". His statement coincides with an almost unprecedented day of political overtures from the three main parties. David Cameron made an emergency statement to the Tory party conference saying he would work closely with the government to overcome the economic storm, beginning with support for a banking reform bill announced by Labour last week. Nick Clegg has written to both party leaders calling for everyone to put their proposals on the table. The emergency bailout plan, deeply unpopular with American taxpayers, was rejected by 228 to 205 votes in the House of Representatives. Mr Brown's words were moderate compared to those of Peter Mandleson, New Labour architect and currently EU trade commissioner. Speaking on the BBC's Newsnight programme, Mr Mandelson said: "I feel they've taken leave of their senses, and I hope that in Europe, we will not see politicians and parliamentarians replicating the sort of irresponsibility and political partisanship that we have seen in Washington."

Clegg calls for party unity over economy

Clegg calls for party unity over economy
Liberal Democrat leader Nick Clegg has called on David Cameron and Gordon Brown to put aside their party allegiances and adopt a cross-party approach to the economic crisis.Mr Clegg wrote a letter to both his opposite numbers last night, just after it emerged that Washington had rejected a bailout bill for the US economy. His call was echoed by David Cameron, who told the BBC's Today programme this morning that he would work with the government to find a solution to the crisis. Mr Clegg wrote: "With the Paulson package blocked in Congress we are now entering a very dangerous time. "We must do everything to prevent the events in the US Congress leading to a downward spiral of market panic and widespread bank failure. "This would pose the greatest challenge to Britain and the world in decades. "That's why I believe these exceptional times require a suspension of normal political hostilities and a rapid move towards a cross-party consensus on how we might prepare for the worst case scenario. "Vince Cable [Lib Dem economics spokesman] and I are working on a number of ideas, from stemming repossessions in the housing market to re-regulating the banks in the City of London, which we would like to put forward for all party discussion. "Surely if all parties were to put forward their own ideas we would be more likely to come up with the best solutions available? "Millions of British families will be following the news of the turmoil in the financial markets with growing alarm. "All politicians of all parties now owe it to them to put their interest above that of party political advantage." Mr Cameron is currently making an emergency statement to party members at the Conservative conference in Birmingham.

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Bipartisan Cameron seeks balanced response to crisis

Analysis: Parties united

Time for a deal
There are strange things afoot in British politics. Suddenly, the main parties want to work together to get the country safely through the economic storm.The situation is not without precedent. It's very common, in any country, for the political class to unite when there are grave threats to the state of the nation. Britain conducted the second world war under a coalition government, for instance. More recently, Tony Blair and Michael Howard could not compliment each other's attitudes enough following the London terror attacks in 2005. Certain events are of such significance that the main parties need to pool their talents. The global financial crisis, massively inflamed by Washington's decision not to offer banks a $700 billion bailout, is one of those. If American banks start falling like dominos, as many analysts believe they will if there is no new agreement, the British financial system will come to the brink of collapse. There is every chance the entire British banking system could be nationalised. Quite simply, it would not be the Britain we know. The combination of Conservative, Labour and Liberal Democrat thinking on the crisis could result in some very interesting – and very effective – remedies. George Osborne's focus on financial conservatism – including a watchdog to analyse the level of government debt – would compliment the government's plans for a new regulatory framework for banks nicely. The right and left bases would be covered, with the Liberal Democrat's economic prophet Vince Cable parachuted in to keep everything together. There's no point pretending, however, that the motivations of politicians ever free themselves entirely from the scheming world of party political advantage. The government's approach has won them good poll results, partly from the ease with which they slip into the left-wing rhetoric necessary during such times, and partly because the Brown-Darling team remains the most trusted with the economy. The Lib Dems and especially the Conservatives are keen to piggy-back on that image and gain themselves some reflected sunshine. To do otherwise would leave the Lib Dems looking pointless, and the Conservatives irrelevant, as they berate the government for actions in the past while it is rolling up its sleeves and sorting out the present. But whether the politicians are motivated by political advantage or not, the British public should feel pleased they have behaved far more impressively than their colleagues on the other side of the Atlantic. In Washington, it is becoming increasingly clear it was the interference of the presidential candidates – John McCain in particular – which scuppered attempts to agree on a bail-out package. The continued fighting between Republicans and Democrats over who is to blame for the current impasse should stand as an excellent working example of what British politicians must avoid if they are to escape the ire of the public. Ian Dunt

Brown: US decision ‘disappointing’

Clegg calls for party unity over economy

It’s Time to Reengineer U.S. Government

Bipartisan Cameron seeks balanced response to crisis

David Cameron seeks bipartisan approach
David Cameron says the Conservatives will work with the government to ensure stability as the economic crisis continues.The Conservative party leader said he had been in conversation with the prime minister and the head of the Financial Services Authority in the last 24 hours as a bipartisan effort to bail out the US economy collapsed in Congress. Speaking on the Today programme, Mr Cameron insisted he had acted to work with the government as a "responsible opposition" on issues like Trident, school reform and impending banking legislation. "There's a substantial point here: it may be necessary to take important steps to provide financial stability and people will want to see cross-party support," he said. Mr Cameron remained critical of the government, however, after his shadow chancellor George Osborne's scathing attacks on Gordon Brown in his speech to the Tory conference in Birmingham yesterday. "For the last ten years we've had a situation where there hasn't been anyone to call time on bank lending," he added. "You've got the Bank of England making the big decisions on interest rates, the FSA doing the regulation about financial products, but it's that piece in the middle: is the overall leverage of debt in the economy getting out of control?" Mr Cameron refused to be drawn on whether the Tories would nationalise a major British bank if it faced collapse. But he sought to emphasise the difference between an institutional failure and a systemic failure, saying both taxpayers and the system need protecting where necessary. "There are dangers for the parties of the left which is to use this as an opportunity to trash the whole system. There are dangers to parties of the right – if they took the view that regulation is always wrong that is a crazy thing to do," he said. "That is something the Conservative party does not believe. A free market system does need rules. What matters is, can we put those rules in place in a way that makes sure our system works well but provides greater stability?" Mr Cameron will address the Tory party conference tomorrow afternoon.

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Clegg calls for party unity over economy

It’s Time to Reengineer U.S. Government

Tories: We will stand up to Russia

Cameron: Not one ounce of complacency

Cameron says Tories are "strong, united" and "ready"

Cameron says Tories are "strong, united" and "ready"
Labour's hold on government has slipped and the Conservative party is "strong, united" and "ready" for power, David Cameron has claimed.Opening the Tory conference in Birmingham, the party leader made a jibe at prime minister Gordon Brown's economic record in outlining Conservative readiness for government. "Who was it who said that he, and he alone, had rewritten the laws of economics to end boom and bust?" he told delegates. "The answer is our prime minister, the then chancellor, Gordon Brown. And my message to Gordon Brown is this: 'You have had your boom, and your reputation is now bust.'" Mr Cameron had earlier admitted that the Conservatives may not have "sealed the deal" with voters. "You never seal the deal until you really win people's trust... a battle we have to fight every day, every week, every month," he told Andrew Marr. But he dismissed recent poll findings that indicated a reduced Conservative lead since Mr Brown's Labour party conference speech and said the unity of the Tory party made it more suited to government than Labour's fractured state. Mr Cameron also rejected Labour claims that the Conservatives believe British society to be "broken", saying: "I'm not a pessimist - I think it can be mended." He called himself a "fiscal conservative" and spoke of plans to increase the Bank of England's power to rescue ailing banks, as well as outlining Conservative plans to permit thousands of non-selective schools to be introduced into the state sector. And when questioned whether he would be interested in taking part in a televised debate with the prime minister, similar to that held between US presidential hopefuls Barack Obama and John McCain this week, Mr Cameron's reply was an emphatic: "Yes, yes, yes."

Cameron: Not one ounce of complacency

Cameron defends use of children

William Hague labels Labour "weak and washed-out"

William Hague labels Labour "weak and washed-out"
William Hague has urged the Conservative party to "re-double" their efforts to take control from a "weak and washed-out" Labour government.Speaking at the Conservative party conference in Birmingham, the shadow foreign secretary said Mr Brown had presided over "the most incompetent government in the modern history of Britain". He added that UK borrowing levels showed Mr Brown had his "chance and blown it". "This is a government so incompetent that they will let out 30,000 prisoners ahead of time this year because they didn't plan for the right number, so blundering that they lost the name and address of every child in the country, so cack-handed that their leak of stamp duty changes hit the housing market instead of helping it, so staggeringly inept that you meet Labour MPs who are misty-eyed about the good old days of John Prescott, when only his half of the government was in chaos rather than the entire administration," he said. The former Conservative leader slammed Labour's handling of the 10p tax route and accused Mr Brown of "seeking to make a virtue of the government's lack of any new purpose, direction, or ideas". "According to Gordon Brown, however abysmal the performance of the British government under his leadership, no one else in the country could possibly do any better," he said. "Well, the British people have had the benefit of his experience for long enough to know they need urgently to experience something different." He added: "When Gordon Brown talks of the age of irresponsibility, he is not the answer to the age of irresponsibility, he is the definition of the age of irresponsibility."

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Kelly resignation leak was "serious mistake", says Hoon

Kelly resignation leak was "serious mistake", says Hoon
Chief Whip Geoff Hoon has said the leak of the news that transport secretary Ruth Kelly was to resign was a "serious mistake".Mr Hoon admitted that while the revelation was unlikely to have been deliberate, it was an unnecessary blow to the government. He also claimed the emergence of Ms Kelly's departure from the Cabinet had detracted from prime minister Gordon Brown's impressive speech at the Labour party conference the previous day. "I don't think anyone could have been happy about that situation, least of all Ruth Kelly. I thought she handled it with commendable dignity," Mr Hoon told Sky News. "I thought that whoever was responsible for that particular piece of briefing acted irresponsibly and not in the best interests of the government. Therefore I certainly regret it. "I doubt actually, given the circumstances, that it was done deliberately. I think this kind of late night gossiping is a feature, unfortunately, of party conferences." He added: "What I do say is that whoever was responsible did make a serious mistake and that has not helped the government." Ms Kelly stepped down in order to spend more time with her family. She will remain in the Cabinet until Mr Brown imposes a reshuffle, which could happen in the next week.

Angry Hoon frustrated by Cabinet leaks

It’s Time to Reengineer U.S. Government

Kelly resignation sparks reshuffle speculation

Tories: We will stand up to Russia

Fighting in South Ossetia during last month's crisis
A Conservative government will stand firm against a resurgent Russia, unlike the "invisible response" of the government, the shadow defence secretary has said."We have seen in recent weeks what Russian bullying meant for the people of Georgia," Liam Fox told his party conference this afternoon. "We in this party should be proud of the strong and robust response made by David Cameron, including his immediate visit to Tbilisi to make it clear that aggression should never pay." In a wide-ranging speech on the role of Britain's armed forces, Mr Fox berated Gordon Brown's "timid" reaction to the Georgian crisis. He also returned to more traditional Conservative foreign policy themes than those articulated by David Cameron, who recently disassociated himself from US foreign policy in a speech in Pakistan. Mr Fox was at pains to stress the importance of good relations with America, and distanced himself from the EU. "In this dangerous world we have to choose our alliances carefully," he said. "And for the United Kingdom that means that NATO not the EU must be the cornerstone of our defence." He continued: "It is increasingly common for those on the European left to sneer at the United States with contempt and derision. Yet the 'special relationship' remains this country's most important strategic alliance. " Mr Fox also called for a better deal for those who serve in Britain's armed forces, including better accommodation, improved healthcare and education and help onto the housing ladder. Today is the first day of the Conservative conference in Birmingham, with talk concentrating on the state of the British economy.

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Feature: Conservative party conference

Feature: Conservative party conference
The Tory party conference begins tomorrow in Birmingham, with delegates already making their way to Britain's second city and David Cameron set to arrive this afternoon.The pressure is on the Conservative leader David Cameron to deliver a barnstorming closing speech to the conference. With a year of solid poll leads behind him, the conference season is Mr Cameron's to lose. But in a sense the timing could be better. With economic concerns railroading any other news story, the last fortnight has been the worst the Conservatives have had for some time. A recent Comres poll for the BBC suggested voters trust Labour with the economy and remain uncertain of Conservative financial competence. Thirty-six per cent trust Mr Brown and Alistair Darling, chancellor, with the economy while only 30 per cent trust David Cameron and George Osborne, the shadow chancellor. That simmering sense of uncertainty over the Conservative attitude to the economy is influencing polls conducted over the last two weeks. A Comres poll for the Independent last Saturday cut the Tory lead in half to 12 points, while a YouGov poll for the Sun conducted post-conference put Labour up seven points to 31 per cent. The Tories have two problems. Firstly, it appears they have not fully shed their negative image on economic affairs since the disastrous events of Black Wednesday, when the Conservative government was forced to remove the pound from the European exchange rate mechanism. Secondly, their message on economic matters appears to be increasingly removed from the public mood. Recent calls from Mr Cameron and Mr Osborne for a rigid commitment to laissez faire economics have gone down badly when the general mood errs more towards greater government regulation. The Conservatives appear to have taken the message on board, with strong indications the party will put economic priorities at the centre of the conference. Events to look out for:Various members of the shadow Cabinet, including Mr Osborne and foreign secretary William Hague will gather on the main stage on Sunday afternoon to discuss how the current economic climate is affecting homeowners and businesses and reveal the party's plan for a strong economy. That will be followed by the appearance of Boris Johnson to outline his vision of London's future. Monday begins with a discussion between Alan Duncan, business secretary, Theresa Villiers, transport secretary and David Willets on the Tory strategy for the business sector. Early indications are the party will stick to its previous anti-regulation announcements, with the event's billing saying Labour has made it "harder and harder for our entrepreneurs and wealth creators". That forms the build up for Mr Osborne's keynote speech to the conference around 12:00 BST, which we'll cover in depth on politics.co.uk. Mr Cameron's speech on Tuesday afternoon brings the conference to a close. The pressure is on for him to deliver a blinder. His scriptless performance last year managed to change the prime minister's mind on whether to hold a general election, and is credited with turning the party's electoral prospects around. He had nothing to lose, and he produced a corker. This year, he has everything to lose, and he needs to dig up something new. Stay with politics.co.uk throughout the conference for the most comprehensive coverage on the web.

Brown to UN: Age of irresponsibility is over

Gordon brown met UN secretary general Ban Ki-moon this morning
Gordon Brown has addressed the UN general assembly as part of his plans to create a new regulatory framework for the markets, calling for an end to "the age of financial irresponsibility".The prime minister will also be meeting with president George Bush, to convince him of the need for further international market oversight. The US is currently in spasms of uncertainty over Mr Bush's $700 billion (£377 billion) injection to avoid economic collapse. Mr Brown told the assembly the world had entered a period of "global turbulence", and that leaders had to "build a new financial order". In an impassioned speech, Mr Brown said: "For the first time in human history we have the opportunity to come together to create a new global covenant and a true global society. "Our history is not our destiny. It is what we choose to make it," he continued. "Let history record ours was a true global response to the world first global crisis." Mr Brown tied countries' commitment to the Millenuim Development Goals to the current crisis, and called for international efforts against poverty and climate change to form part of the UN's response to the current economic chaos. The Tories ridiculed the comments. George Osborn, shadow chancellor said: "Gordon Brown has now accurately described his time in office as the 'age of irresponsibility'. "For ten years he presided over a debt fuelled boom and failed to call time on debt. The age of irresponsibility has now become the age of hypocrisy." The prime minister has relied on his ability to create lasting change out of the current chaos as a lifesaver from his political problems at home. He used his Labour conference speech earlier this week to promise a new settlement following weeks of financial uncertainty. He has promised action on City bonuses, transparency and financial regulation. Yesterday, in a brief press conference, he called for greater cooperation from national states and an international global warning system for financial problems. "Although this started in America, there are consequences for other countries, and we can work together to solve the problem," he said. A recent Comres poll for the BBC suggested voters trust Labour with the economy and remain uncertain of Conservative financial competence. Thirty-six per cent trust Mr Brown and Alistair Darling, chancellor, with the economy while only 30 per cent trust David Cameron and George Osborn, the shadow chancellor. Mr Brown's initiative comes as figures released by the World Bank suggest 1.4 billion people will continue to live in abject poverty in third world countries in 2015 – 400 million more than previous estimates. War on Want executive director John Hilary said: "Governments seem to have bottomless pockets when it comes to saving banks from their own failings. "Yet there is no such action to protect the poorest from the ravages of finance capital. Leaders at the UN summit should examine their consciences and put the needs of the poor before the interests of the banking elite."

Clegg calls for minimum price on alcohol

Clegg calls for minimum price on alcohol
A minimum price for alcoholic drinks should be set across the UK, Liberal Democrat leader Nick Clegg has suggested.The call comes as details of supermarkets pricing system for alcohol becomes clear. Various big supermarkets have been selling alcohol as 'loss leaders' – priced below cost to encourage the shopper to come in the shop and buy further items. "As a rule, I don't believe governments should set prices, but when retailers are deliberately distorting the market we need to take action," said Mr Clegg. "It is unacceptable for retailers, especially big supermarkets, to run a coach and horses through alcohol duties in order to sell alcohol well below its cost." The plan, revealed at the Sheffield Alcohol Conference today, forms part of a Lib Dem paper on alcohol and licensing set to be published in October.

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Cameron defends use of children

David Cameron defends use of his family in political material
Gordon Brown's description of his children as "people, not props" has put David Cameron on the defensive over the way his own offspring are in the public eye.The Conservative leader explains in an interview to be broadcast on Sky News this evening why he is happy to use his children in his political life. "I'm asking British people to do a huge thing which is to put their trust in me, make me their prime minister," he said. "I think people as I've said have a right to look at you and who you are. For me my family's the biggest thing in my life. That's why I've done what I've done." During his leader's speech at the Labour party conference in Manchester Mr Brown described his children as "people, not props". He made a clear distinction between his wife Sarah, who introduced her husband at the conference with a brief speech of her own, and his children. Mr Cameron added: "If the prime minister wants to have a go, then fine, that's life."

Brown prepares to address UN

Gordon brown met UN secretary general Ban Ki-moon this morning
Gordon Brown will spearhead the first stage of plans to create a new international regulatory framework for the markets by delivering a speech to the UN today.The prime minister will also be meeting with president George Bush, to convince him of the need for further international market oversight. The US is currently in spasms of uncertainty over Mr Bush's $700 billion (£377 billion) injection to avoid economic collapse. Mr Brown has relied on his ability to create lasting change out of the current chaos as a lifesaver from his political problems at home. He used his conference speech to promise a new settlement following weeks of financial uncertainty. He has promised action on City bonuses, transparency and financial regulation. Yesterday, in a brief press conference, he called for greater cooperation from national states. "I'll be talking about this with President Bush tomorrow, but I'm already hearing consensus from European leaders," he said. Mr Brown said he was concerned about the way companies which operate across borders can escape regulation from one state when operating in another one. He also called for an international global warning system for financial problems. "Although this started in America, there are consequences for other countries, and we can work together to solve the problem," he added. The initiative comes as figures released by the World Bank suggest 1.4 billion people will continue to live in abject poverty in third world countries in 2015 – 400 million more than previous estimates. War on Want executive director John Hilary said: "Governments seem to have bottomless pockets when it comes to saving banks from their own failings. "Yet there is no such action to protect the poorest from the ravages of finance capital. Leaders at the UN summit should examine their consciences and put the needs of the poor before the interests of the banking elite."

Lib Dems broke rules on phone calls

Lib Dems broke rules on political phone calls
The Liberal Democrats broke electoral rules by setting up automated phone calls to voters, the information commission has found.The party has now been ordered to cease making the calls or face prosecution. The Liberal Democrats have said they will not appeal the decision, although the party insists they were for "genuine market research purposes". The party made 250,000 of the calls last week after Nick Clegg's leader's speech to the conference. The SNP, which referred the calls to the commission, welcomed the news, with Fife MSP Tricia Marwick saying: "It has been clear since 2005 that this type of automated calling is prohibited. "The hypocrisy of the Lib Dems in making these calls knows no bounds."

Lib Dems eye 20bn in efficiency savings

Obama, McCain, and the Stock Market

Senate Forges a Compromise Energy Bill

Campbell calls for defence review

Sir Menzies Campbell warns military covenant needs revising
The military covenant needs to be reassessed in the first defence review in ten years, the Liberal Democrats say.Former leader Sir Menzies Campbell has chaired the party's own policy study of defence issues and will present his report later today. "There's clear evidence where the govt fails to honour its obligations, that is yet another reason which persuades people to leave the armed force," Sir Menzies told the Today programme. "Part of the problem is because of the size of our armed forces, we're asking people to undertake operations far from frequently, far more regularly… this is as much a breach of the military covenant as is failing to provide healthcare, housing." The last defence review took place in 1998 and did not foresee British involvement in either Iraq or Afghanistan. Sir Menzies fears without a radical reassessment Britain's political ability on the world stage will be negatively affected. "If we go on… carrying on regardless there will be a long slow decline in Britain's military capability," he added.

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'Primary colour' Lembit launches campaign

Lembit Opik seeks Lib Dem presidency
Would-be Liberal Democrat president Lembit Opik has kicked off his campaign with a video in which he pledges "a party in primary colours".The former housing spokesperson, who stepped down from his old job earlier this week in a bid to concentrate on his campaign, is seen emerging from his "ordinary home" to talk to the camera about his vision for the Lib Dems. "If you vote for me you don't get a party in pastel shades – you get a party in primary colours," the hard-hitting Mr Opik says. "I think that's what we have to do if we're going to get into government." The accordion-playing Mr Opik has enjoyed a high profile in the tabloid newspapers with a string of failed relationships. His past loves have included a Cheeky Girl and weatherwoman Sian Lloyd. Now Mr Opik is determined to succeed Simon Hughes as the party's president and argues his media-friendly antics work in his favour. "As for inspiration, well you judge for yourself," he says in the video, as music by the Cameleonz plays behind him. "You've seen me on TV, sometimes you'll like it, maybe sometimes you don't. But what really matters is everybody knows who I am. Everyone has an opinion – everyone knows I'm a Liberal Democrat." He faces competition from Baroness Scott of Needham Market and Liberal Vision campaign group director Chandila Fernando. Baroness Scott has attracted the support of fellow peers Paddy Ashdown and Shirley Williams. Lord Ashdown says of Baroness Scott in a video recorded at the party's autumn conference in Bournemouth: "She remains connected to her roots – tied in back to the people that matter, the people on the ground". Nominations for the campaign closed yesterday and voting ends on November 7th.

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Kelly exit fallout hits No 10

Cabinet reshuffle next week, Cabinet recriminations this week
Bitter recriminations within the Cabinet are overshadowing an impending reshuffle following the exit of Ruth Kelly.Gordon Brown is expected to reshape his Cabinet next week after the botched announcement in the early hours of Wednesday that Ms Kelly would resign from her post as transport secretary for "family reasons". It is not yet clear whether Ms Kelly was forced to leave because of a negative reaction to Mr Brown's speech as party leader on Tuesday. The Conservatives claim an Observer journalist overheard her describe the speech as "awful", but the journalist in question has said this is categorically untrue. Ms Kelly is also a high-profile opponent of the government's embryology bill, which will be voted on soon. The manner of her departure has created a swirl of news stories about divisions at the top of the government. Those close to the prime minister are believed to suspect Blairite enemies of deliberately leaking the story. Opponents of Mr Brown were even reported to be considering a group resignation. The Guardian newspaper quoted one Cabinet minister as saying: "Gordon made the best speech I have heard him make. But the overnight events mean that he is now back to square one. He will be toast by Christmas."

Kelly resignation sparks reshuffle speculation

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Poll bump for Labour after conference

Gordon Brown still trails David Cameron
Labour has halved the Conservatives' lead in the polls following their party conference in Manchester, according to YouGov.Its poll for the Sun newspaper cuts the Tory lead by ten points to ten per cent, a dramatic improvement for Britain's struggling governing party. Labour is up seven points to 31 per cent while the Conservatives slip back three per cent to 41 per cent. The Liberal Democrats are on 16 per cent. Mr Brown, currently engulfed in a post-conference row over whether or not Downing Street deliberately leaked details of Ruth Kelly's resignation as transport secretary, will be relieved by the bounce following his speech. His exposition of a "new settlement" for Britain was warmly welcomed by most Labour supporters at the conference and his wife Sarah Brown, who introduced her husband, also proved a hit. Despite the bump the prime minister continues to trail Tory leader David Cameron, however. Just under a quarter think he would be the best person in No 10, compared to 32 per cent for Mr Cameron. And, despite having been the longest-serving chancellor in modern history, Mr Brown is viewed as not understanding the credit crunch's impact by 60 per cent of those polled.

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Blears: This is the fight of our lives

Hazel Blears admits Labour facing tough fight
Labour is facing the "fight of its life" to stay in power, communities secretary Hazel Blears has admitted.At a packed rally hosted by the Progress thinktank, Ms Blears also renewed her implicit criticism of Gordon Brown originally made to the Independent on Sunday, in which she said the prime minister needed to demonstrate more "emotional intelligence". "We need a sharper, clearer analysis," she told the audience. The public want "candidates who reflect their language," she went on. "We need to sound like we know what's it's like to face up to credit card bills. "This is going to be the fight of our lives." At the same meeting, Cabinet secretary Ed Miliband confirmed a noticeable shift to the left from within the party, when he argued "markets had become too powerful". "We understand the power of government to shape markets," he told delegates. "The Tories just believe in free-market dogma." Later in the day, schools secretary Ed Balls told a meeting he did not agree with Peter Mandelson's infamous quote that New Labour was comfortable with people becoming "filthy rich". "I don't want to live in a society in where there's a growing gap between rich and poor," he said. The comments mark a significant political shift in Labour's rhetoric since last week's economic turmoil. Since Gordon Brown's intervention proved popular in opinion polls, members of the Cabinet have proved increasingly willing to make left wing comments about the economy. Mr Brown has pledged to clear up the financial system to try and prevent a further crisis.

Blears’ fighting talk rouses Labour

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Miliband denies leadership ambitions

David Miliband rules it out, sort of
David Miliband, attacking the media for their obsession with "personality stories", has ruled out his support for a leadership election.The foreign secretary was speaking at a fringe event in Manchester on the day activists turned against rebel Charles Clarke's calls for a leadership election. Mr Miliband said he rejected the claim of disunity in the party and emphasised his support for the prime minister, saying: "The party needs to pull together. We need to pull together behind Gordon's leadership." The audience of Labour supporters for a recording to be broadcast on BBC Radio 4's World at One programme openly criticised journalist Martha Kearney for her questions about recent leadership speculation. "In the end there are statistics about how politicians are out of touch. But, in the nicest possible way, there are also statistics about what people think of journalism and the media," he said, to applause. "The truth is the media haven't had a story that you want to run with. You want to run with personality stories and actually what you've got is a serious, serious political party that knows that being in government is a privilege but that being in government is a chance to change your society and we're not giving up easily." Mr Miliband said he believes British voters expect the Labour party to be focusing on issues that concern them. But he did admit there were things which could be done to improve the situation, remarks which some journalists have seized on as evidence that the leadership issue is re-opening. Mr Miliband added: "Our own agenda is… being set by every Cabinet minister who is determined to go out there and say: 'If you won't talk up our record, but we will, in an honest way that's gone wrong as what's gone right.' "We're going to do that in a self-confident way, that is open and inclusive and tries to speak to all the serious issues we've raised here." Communities secretary Hazel Blears also made similarly supportive comments as she addressed the Progress rally. Likening herself to Labour stalwart and legend Barbara Castle, Ms Blears said: "I'm not going to let those Tories walk back into Downing Street without a fight and this is going to be the fight of our lives so bring it on". Ms Blears added it was no good Labour Cabinet members listing the achievements of the government nor talking about Tory government failures. "We know people cast their vote for a number of reasons," she said. "But one of the reasons people vote is because of politicians that can empathise with them. In the 1980s we had policies coming out of our ears but we could not connect with the public. In the 1990s we connected with the electorate". And in what is possibly a case of revealing what is the worst kept secret in current British politics - the timing of the next general election - she said: "If you talk about Thatcher in the election in 2010 you might as well be talking about Stanley Baldwin".

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Kelly resignation sparks reshuffle speculation

Transport secretary Ruth Kelly is to step down from government
Transport secretary Ruth Kelly has said family reasons compel her to step down from the government "at the next Cabinet reshuffle", prompting speculation about when such a move will be.A Labour party spokesperson told politics.co.uk the prime minister reserved the right to implement a reshuffle at any time, but analysts say Ms Kelly's resignation significantly raises its possibility in the near future. Ms Kelly, 40, said she is leaving her position in the Cabinet to spend more time with her family. "After committing most of my adult years to politics, I now want to devote more time to my family," she told the party conference in Manchester. "I owe it to my children and family to put them first. If I do not, then I know that this will be something I will come to deeply regret." A Downing Street spokesman had earlier confirmed her departure but was unable to say when she would be replaced. Ms Kelly said this would be her last speech to conference as a Cabinet minister, indicating the move will come before the spring conference next year. The Bolton West MP had told Gordon Brown back in May about her decision to "step back" from politics but had no influence on the timing of today's announcement. Ms Kelly said that her decision was "absolutely, completely for personal reasons" and rejected claims it was over her objection to the human fertilisation and embryology bill. "I owe it to my family to put them first," she said, before ending that she would continue to support the Labour party. In a series of television interviews this morning, the prime minister said he supported Ms Kelly's decision. "Ruth Kelly's a very good friend of mine - she feels the tension between being a constituency MP, a minister and having a family of four," he told Sky News. "She wants to spend more time with her children. This was a very personal decision." Reports suggest the transport secretary will step down in the next Cabinet reshuffle. Ms Kelly was elected to parliament in 1997 and has been a member of the Cabinet since 2004.

Blears' fighting talk rouses Labour

Hazel Blears rallies Labour with fighting speech
Hazel Blears delivered a pugilistic speech to the Labour party conference this afternoon, saying she expects a real "fight" against the Conservatives at the next election.Labour are as many as 20 points behind in the polls at present but the mood in Manchester this week has seen the party unite behind Gordon Brown as they prepare to take on David Cameron's Tories. "We are ready to take on these Tories, scrutinise every claim, test every argument, let no lie go unchallenged," she said. "Conference, this will be the fight of our lives, but I wouldn't miss it for the world." Much of her speech focused on her personal background and her father was in the audience to watch her speak. She related her experiences growing up in Salford to the threat of a new Conservative government, saying she experienced a "broken society" there under Tory rule. "Come on, Mr Cameron, if you want a fight about whether it's Labour or the Conservatives who can best deliver a strong society, we stand ready." Ms Blears raised eyebrows with one remark as she discussed the ability of Labour politicians to communicate with members of the public. "Labour politicians may seem a little bit odd at times, but underneath, we get it," she said.

Miliband denies leadership ambitions

Comment: Tories speechless in financial crisis

George Osborn: speechless?
Has anyone heard anything from the Tories recently? It's a strange, almost dreamlike feeling, not having a Conservative spokesman waxing lyrical on every issues of the day. Suddenly, they are nowhere.There's a good chance the Tories are feeling something they haven't felt for a while – concern. Gordon Brown pulled a clever little trick this week by facilitating the Lloyds TSB – HBOS merger, starting work on it – apparently - as early as Monday, when he bumped into Lloyds chairman Sir Victor Blank at a City reception. There's little wonder Labour spokespeople have been hawking the line about 'tough economic times' and 'the right man for the job' incessantly since Lehman Brothers collapsed early Monday morning. He gives every indication of being rather good at all this. If things go as planned, his initiative may have just saved us from a massive cash-sucking bank – far larger than Northern Rock – falling into our very public, taxpayer laps. About time too. Taxpayers never seem to be the ones to profit from these firms, but we're always the ones picking up the bill when things go wrong. There are risks to Mr Brown's actions, of course, and this brave little moves could still cost him. There's a potential electoral glitch in being personally active in a decision that could put thousands of voters on the dole, and there's still the chance HBOS could drag Lloyds down into the mud. And then there are the other questions. Mr Brown's newfound distaste for City greed and lack of financial regulation seems odd, given he never mentioned this before in his lavish praise for the UK's economic powerhouse in east London. On a larger scale, it was Labour which encouraged a view of equality which valued absolute income far higher than relative income – meaning there was no moral obstacle to obscenely disproportionate levels of wealth living side by side. Not only that, but new research by the Taxpayers' Alliance, released today, put his decade long record in the Treasury under the spotlight. It says the tax burden went up significantly under his tenure, while Britain's economic growth was far slower than that of other English-speaking countries. It's always possible we're witnessing not so much an example of Mr Brown's economic competence, but something we'd forgotten about – that Brown does best during a crisis. That was what gave him such a boost on entering Downing Street, with foot and mouth outbreaks and terrorist attacks popping up left, right and centre, and it seems to be helping him out here too. That dour persona – so disastrous in normal political life in 21st-century Britain - comes into its own when the smile has been wiped off everyone else's face. The alternative voice available to the British electorate is that of Vince Cable, the Liberal Democrat economic spokesman Nick Clegg referred to – rather toe curlingly – as "a twinkle-toed economic prophet". Mr Cable is overrated. If he is as good as the Liberals say he is, they would have presented the public with a fully-costed tax cutting plan, rather than assurances and innuendo. Be that as it may, he is good. He predicted Northern Rock's nationalisation and, to a more limited extent, the housing crash. Not only that, but he can explain economics – which very few politicians, journalists, or party members genuinely understand – in fairly comprehendible language. And so the Tories find themselves squeezed out the picture. With Brown failing to act uselessly, and Liberal Democrats at the ready with their financial attack dog, the Conservative response seems to have been to shut up shop. They've spent well over a year now endlessly droning on about how Mr Brown didn't fix the roof while the sun was shining, but now they must gaze at that phrase with some trepidation. They never complained about the spending of government as it happened, making this retrospective indignation somewhat distasteful and opportunist. But far more important, they know that opening up a 'roof-sunshine' salvo now will look pernickety and useless. The last thing they need is to be whingeing about the past while the government seems to get its hands dirty trying to fix the situation. That plays all too easily into Labour's 'all style, no substance' attack. The current crisis also shines a spotlight on George Osborne, the shadow chancellor. I find the possibility of him sitting in the Treasury, like a child with a grand new toy, almost as obscure and pathetic as giving the keys to the Foreign Office to David Miliband. The child chancellor following the child foreign secretary into office. Now that events have centred on his brief, he says nothing of any value whatsoever. Here's his statement in response to the Lloyds TSB-HBOS merger: "The situation in the financial markets is very serious. We support the merger of Lloyds TSB and HBOS, and think it is right to suspend competition questions in the public interest. We will support measures that will stabilise the banking system." So far he has simply repeated the government line. "On the question of short selling, market abuse is not acceptable, but we must tackle the causes of this crisis, not the symptoms." Again – the government line. "The causes are a decade of debt when the government hubristically claimed that we had abolished boom and bust." This is the roof-sunshine argument, smuggled pointlessly into the middle of the statement. "In relation to the suspension of competition rules, the test must be what's in the public interest. In normal times, there might be concern about having such large high street bank. However at the moment it is in the national interest temporarily to suspend competition arrangements, as the priority is to bring stability back to the British banking system." Again, this is just the government line. It's an easy comparison with David Cameron, whose comment after the banning of short-selling was: "Anything the prime minister and the government do to help will have my full support." Very useful. Having set themselves so firmly in the background, one wonders how the fate of the Tories will be affected if the crisis continues – right now FTSE seems to be recovering somewhat, but few would be confident enough to maintain much optimism. There's little chance of this period lasting so long it threatens a Conservative win at the next general election. Gordon Brown's weak grasp of necessary prime ministerial qualities and Labour's stale performance almost guarantee that. But it's worth remembering that electorates, especially the British electorate, vote on the money in their pocket. If the current tepid Conservative performance on the economy continues, and the economic crisis persists, the election could prove a closer call than many of us predicted. More worrying is this: what exactly will the Tories be doing if this happens when they are in power, and how precisely will they stop it happening again? Ian Dunt

Brown wins support for crisis action

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Brown unruffled before Labour conference

Gordon Brown defiant before Labour conference
Gordon Brown says he takes "the rough with the smooth" in a defiant message to those calling for a leadership election.His comments, to be broadcast this evening in an interview with Sky News, come on the eve of a Labour party conference where his leadership is expected to be questioned by many. The prime minister faces pressure after a difficult summer where several senior staff have left No 10 in an effort to escape its 'bunker mentality'. He faces an enormous deficit in the polls and is reportedly the most unpopular British prime minister since Neville Chamberlain, but insists he is "not going to be diverted by a few people making complaints". "That is the stuff of politics. I get on with the business of government," he said. "You go through periods. Sometimes you are popular, sometimes people resent the decisions you make and sometimes people are disappointed. You always get that. You take the rough with the smooth." It follows a letter sent by the prime minister to Labour MPs telling them that "we can come through this difficult time" and that he needs them to "restate the case for our party and values".

Labour MP: This will be Brown’s last conference

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Brown receives help from down under

Kevin Rudd praises Gordon Brown's vision
Australian prime minister Kevin Rudd gave his firm backing to British counterpart Gordon Brown in a video message to the Labour conference this afternoon.Speaking from Australia he restated his admiration for the prime minister's "passion" and "vision" at a time when Mr Brown's leadership has found itself under criticism from a minority of Labour supporters. A personal friend of Mr Brown, Mr Rudd said the pair had developed a close friendship long before they emerged to prominence on the global stage. Mr Rudd praised Mr Brown's "absolute clarity of his vision for our planet's future" and his "rock-solid reliability" in "doing what he says he will do". "That is where leadership is necessary," he told delegates via videolink. "That is where global leadership is necessary. That is where British global leadership is necessary – of the type I have seen for more than a year now from Gordon Brown." He finished by praising Mr Brown's ability to "look beyond the horizon of domestic politics", saying this enabled him to "deal with the great challenges of our age".

Brown unruffled before Labour conference

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Brown wins support for crisis action

Brown addresses conference delegates in 2007
Gordon Brown has won a boost in the polls following his intervention in the Lloyds TSB-HBOS merger last week.The Conservative policy of staying silent while the economic crisis ruled the front pages seems to have backfired, with Tory support dropping significantly. The combination of these two factors has almost halved the David Cameron's lead, from 21 points to 12. Labour are up two per cent to 27 per cent, while the Tories have fallen from 46 per cent to 39 per cent. The poll, conducted by ComRes for the Independent on Sunday, shows some measure of success for the Liberal Democrats following their party conference. Their support leapt from 16 to 21 per cent. But the results were dampened by a massive survey of public opinion in marginal constituencies conducted by the PoliticHome.com website. Polling over 35,000 voters in 238 seats, the survey predicts a Labour wipeout at the next general election, with the Tories gaining a majority of 146. Several high profile Cabinet secretaries would lose their seat, including justice secretary Jack Straw, home secretary Jacqui Smith, defence secretary Des Browne and chief whip Geoff Hoon. With the party conference in full swing, Mr Brown is in as strong position as he has been in for some time, given widespread – but still tepid – support for his merger intervention. But statements made by supposedly loyal Cabinet colleagues such as Alan Johnson, health secretary, and Hazel Blear, local communities secretary, along with a new round of attack from Charles Clarke, are interfering with his come-back.

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Analysis: Miliband speech

David Miliband - convincing, but not too convincing
David Miliband walked on stage today and did precisely what he needed to do.He praised Gordon Brown twice, but it was in his body language, and his tone, that he communicated his message: I'm loyal to the Labour party first and foremost. It is, of course, entirely sensible. Having laid out his stall with the infamous Guardian article in June, he now had to ensure he wasn't associated with the Labour plotters so resented by many in the party, and in the country at large, for their self-absorption during an economic crisis. If the Guardian article said: 'Look at what a good leader I'd be', then today's speech added: 'Look at what a good Labour man I am.' Mr Miliband, he was keen to point out, is not the type to fling dirt at a Labour prime minister while the economy crashes and the Tories soar. His first reference concerned cluster munitions, nasty little bomblets which often lie unexploded until a child - it's very often a child – treads on it. During talks on their legal status, Mr Miliband said, "the skilful intervention of one man broke the deadlock: our leader made the difference, Gordon Brown." The second reference was far more gushing. Speaking about the increase in aid over the last 11 years of Labour government, Mr Miliband turned away from the audience and towards the prime minister sitting by a podium desk behind him. Frankly, it looked as if he was about to regale him with love songs. The speech reads: "That's the difference Gordon Brown makes. He has transformed the debate about international development in Britain." But that wasn't quite how he said it. He prolonged the moment, and elevated his tone, and turned it into a minor piece of conference theatre – a simple, crystal clear message of loyalty. Gordon Brown could not have asked for anything more. And yet, on stage after the speech was done, as delegates were giving the foreign secretary a standing ovation, the body language between the two remained excruciating. Both forced smiles and endlessly patted each other on the back. Mr Miliband oscillated between smiling at Mr Brown and looking out at the audience and bowing slightly, in a rather odd manner. But for one moment, the same steely gaze came over his face that he had during the speech. During a speech, steely gazes communicate the message of taking things seriously and getting down to business. While receiving a standing ovation it comes across entirely differently. He seemed like Napoleon surveying his fleet. With Mr Brown looking haggard behind him, no amount of theatre can hide the reality of their relationship. Miliband will play no part in overthrowing him, but he will almost certainly replace him when it happens. It's easy to see why many Labour members would yearn for a man like Mr Miliband when saddled with a leader like Mr Brown, but they should remind themselves of relativity. Next to Mr Brown, David Miliband shines. But he is no Tony Blair. Yes, his smiles seem unforced and natural. Yes, he gesticulates logically, not like a public relations executive backstage quickly reminded him to occasionally move his hands. Yes, he is young, with a full set of hair, and somehow likeable. But as a politician he remains unspectacular. He is an above average orator, but not inspiring. He has no ideas or soundbites that stick in the memory. And most importantly of all, he would carry with him the weight of Labour disenchantment currently borne by the former chancellor. Mr Miliband did exactly what he set out to do. In the summer, he made his ambition clear. Today, he affirmed his loyalty to party over loyalty to his career for all to see. Next, he will bide his time, and after that – with Alan Johnson having cleared the way – he will almost certainly become party leader. But in all the excitement Labour members should not blind themselves to his capabilities. His talents still don't live up to his press. Ian Dunt

Purnell plays defeat card to prompt Labour unity

James Purnell warns of defeat consequences
James Purnell sought to unify Labour supporters in his speech to conference this afternoon by presenting them with the consequences of defeat at the next election.The work and pensions secretary reminded party supporters of the "ghosts" of past defeats and the "bitter frustration" of being out of government. Mr Purnell said the party had changed because of its failures and that, 11 years after the party entered government, the Tories have begun saying "they agree with us". "It opens the door to us winning the next election," he said. "If the country does want progress, as I believe it does, then people should vote for the only progressive party in British politics. They should vote Labour. After all, why vote for an imitation when you can vote for the real thing?" As Mr Purnell began to lay out his vision of "how we win" sceptics in the audience might have begun thinking he was articulating a leadership challenge. But he quickly rectified his concerns with a quick comment about embattled prime minister Gordon Brown. "I judge a man by the things he believes in," he said. "And Gordon's unwavering commitment to social justice and the eradication of poverty in good times and bad marks out of the character of our leader." Mr Purnell was scathing in his assessment of Tory leader David Cameron, who he said "doesn't have a single bone of conviction in his body". He accused the Conservatives of creating a "cartoon version of politics" and suggested the opposition party were hypocritical on social responsibility. "They conjure up a phantom problem and then offer a mirage as a solution," he continued. "On policy positioning, they are clever. On policy, they are an absolute shambles. It is policy that decides if the future of the country is progressive or conservative."

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Johnson clears way for Miliband leadership bid

Johnson has made clear he would not stand in Milliband's way
Health secretary Alan Johnson has cleared the way for his younger colleague David Miliband to launch a leadership bid.Mr Johnson, widely liked in the party and considered by many to be the only figure capable of wrecking a Miliband ticket, gave strong indications he would not stand in the way of the foreign secretary when the time comes. By ruling himself out of standing, the doors are open to a 'dream ticket' of Johnson and Miliband. Praising Mr Miliband as "a real talent", Mr Johnson said: "I think David has a great future in the party". But Mr Johnson provoked outrage in Downing Street when he went on to describe how Mr Brown had promised to only serve one term as prime minister, a claim instantly discounted by Number 10. "Gordon Brown has said that if elected he would serve for one term, and when Gordon Brown has decided his one term is over , or when he has decided to step down, then we will have a discussion," Mr Johnson said. That statement marks the most outspoken moment of Mr Johnson's thoughts during Labour's current leadership crisis. It was followed today by comments from local communities secretary Hazel Blears, saying Mr Brown lacked "emotional intelligence". "When people think about Gordon, it might be that he's a bit serious and dour – but experienced," she said in an interview with the Independent on Sunday. "People make their political decisions not just rationally but emotionally as well and I think our government needs to be more emotionally intelligent, and the bit that Cameron has got is the language." Political observers have been keeping one eye on the local communities secretary following the glut of rebellious briefings and letters last weekend. Most of the Labour rebels – although not David Cairns, the Scottish Office minister forced to resign – were supporters of Ms Blear's deputy leadership campaign.

Fighting talk: Brown outlines 'fairness' policy document

Labour conference looming
Gordon Brown says "radical" changes in the political landscape mean change is needed to keep Labour in power in a policy document published this afternoon.The prime minister, facing a fight for his political future at next week's party conference in Manchester, said he wants to achieve a "fairer and more prosperous society" in the Winning the Fight for Britain's Future paper. In a clear attack against Conservative leader David Cameron's description of Britain as a "broken society", Mr Brown says Labour does not have a "pessimistic vie that runs Britain down all the time". "This country has never been broken. It is not now. Nor will it be. "Instead with government passing more power and control to patients, parents, communities, and citizens, we have a real opportunity to forge an even fairer and more prosperous society." Mr Brown says "radical change" has given Labour "extraordinary new opportunities" and that these must be seized upon. "New times ask new questions and demand new answers. Only Labour can provide them for all the people of our country," he concludes.

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Angry Hoon frustrated by Cabinet leaks

Geoff Hoon angry at Cabinet leak
Government chief whip Geoff Hoon has expressed his frustration that details of a recent Cabinet meeting were leaked.His comments followed media reports quoting unnamed sources expressing frustration with prime minister Gordon Brown during a Cabinet meeting. He allegedly concentrated too heavily on the Conservatives when his own party are in dire trouble in the polls. It is not certain a member of the Cabinet had made the leak or leaks as several civil servants usually attend such meetings. But if it was a Cabinet colleague, Mr Hoon said in an interview to be broadcast tomorrow on BBC News 24, such an action would be "quite wrong". "If it is Cabinet colleagues who are responsible for those briefings ... it is quite wrong for them to breach the confidentiality of cabinet conversations," the BBC quoted him as saying. "The only way in which this group of people can deal with the kinds of problems the country faces is if we can speak frankly to each other, we can have the kind of conversations that are necessary to deal with the very difficult circumstances that this country faces - and they should not, ever, breach that confidentiality." The Labour party conference begins tomorrow in Manchester.

Labour MP: This will be Brown's last conference

Alan Simpson MP
A Labour has MP has predicted this weekend's party conference will be Gordon Brown's last as leader.Alan Simpson, veteran left-winger and Labour rebel, has written an article for the Morning Star, set to appear tomorrow as the Labour conference begins. In it, he launches a scathing attack on both Blairite and Brownite wings of the party, and Mr Brown's tenure as Labour leader. "Delegates at the Labour party conference in Manchester should be gentle with Gordon Brown," he writes. "It will be his last as Labour leader and prime minister. Gordon is like a Damien Hirst sheep. Trapped in formaldehyde, he lacks the qualities needed for a bold leap that would free him from his own goo." He goes on to compare the treacherous plots against Mr Brown to his own calculations in gaining power within the party. "There will be no direct challenge to Brown," he writes. "His demise will come from the drip, drip, drip of underwhelming support within the parliamentary Labour party. "There is a degree of irony about this. Brown himself worked obsessively to ensure there was no leadership contest when he succeeded Tony Blair. It was a contest Brown would have won hands down, but he wanted a coronation not an election. "More than that, he wanted to avoid the wide-ranging debate on policy that his potential challenger, John McDonnell MP, was already trying to open up." Mr Simpson is firmly on the left of the Labour party, and has the distinction of being one of the most rebellious MPs in paliament - only three other MPs have rebelled against their party whip more often.

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Purnell and Milburn hint at Labour disquiet

Alan Milburn speaks out in call for "change"
Former Cabinet minister Alan Milburn stirred up Labour's leadership row today with a coded attack on Gordon Brown and a call for the party to embrace "change" if it wants to win back voters.Mr Milburn's criticism, in a pamphlet for the Blairite thinktank Progress ahead of the party conference, came as an opinion poll suggested that Labour are a record 28 points behind the Tories after the latest bout of infighting. And it follows comments by work and pensions secretary James Purnell in which he refuses to condemn those MPs calling for a Labour leadership election. Mr Milburn's intervention will focus attention on the leadership split, although he has made no secret of his distaste for Mr Brown since he resigned as health secretary in 2003, saying that he wanted to spend more time with his family. "One of New Labour’s key strengths has been its preparedness to face the future challenge rather than taking comfort in the past achievement," he wrote. "The willingness to change is what has made New Labour so dominant in British politics and forced even our most strident opponents into contemplating changes they once thought abhorrent. Now change beckons once again." In an interview in the New Statesman, Mr Purnell said he could understand why MPs wanted a contest, although he did not agree with them. "I think it would be ridiculous to pretend that you can't complain when you're worried. I mean, I'm worried that we're 20 points behind. I'm not going to condemn people or question their motives. [But] I don't agree with what they did," Purnell said. Purnell told the magazine he agreed with John Hutton, the business secretary, who also refused to condemn the rebels when he gave an interview at the weekend.

Purnell plays defeat card to prompt Labour unity

Feature: Labour conference

Manchester Town Hall, near the conference centre
The Labour conference begins today following fierce speculation about Gordon Brown's future as party leader.Three large protests against Labour (Iraq, public sector and postal workers) will hit Manchester while delegates congregate in the secure zone, and an alternate far-left conference is taking place down the road, tempting veteran Labour left-wingers like Tony Benn and Jeremy Corbyn away from the main event. Apart from that, there are some specific focal points to look out for. Charles Clarke will be delivering the Unlock Democracy lecture on Sunday. There's always a chance he'll make further comments along the lines of his New Statesman article telling Mr Brown to step down "with honour", although the last time politics.co.uk spotted him being questioned on the subject by an eager journalist (at the Lib Dem conference) he came within an inch of punching him in the face. Mr Clarke pops up again on Monday to go head to head with journalist Andrew Gilligan at a debate entitled 'Who calls the shots – politicians or journalists?'. It could be interesting. Not only was Mr Gilligan the journalist blamed by the Hutton inquiry for being less than accurate in his Iraq war reports but he is also credited (or despised) for leading the campaign against Ken Livingstone's attempts to be re-elected as Labour mayor of London. Later in the day David Miliband makes his speech to the main conference hall on foreign policy. Pundits and obsessives will be scanning his words with a political decoder to spot any hidden leadership pitch. They probably won't find one, but you never know. There's a good panel for the debate on how Labour can win the next election, featuring education secretary Ed Balls, one of Mr Brown's most loyal lieutenants, health secretary Alan Johnson, consistently a highly-rated leadership contender, Ken Livingstone, who needs no introduction, and Jon Cruddas, the backbench left-winger who retains tremendous popularity within the party. Then on Tuesday, it's Mr Brown's make or break speech to the conference. Or at least everyone presumes it's Tuesday, because that day's plenary for the conference hall lists precisely nothing. There are reports the speech was finalised a month ago, boding ill for its chances. Most of the best speeches, the professionals say, are finished hours before delivery, fresh and written in blood in the early hours of the morning. Things are about as bright for Mr Brown as he could possibly have hoped them to be at this stage. Whoever leaked whichever name on whatever occasion, the drip feed of briefings, letters and resignations over his leadership appears to have subsided. Furthermore, his part in the Lloyds TSB – HBOS merger has been widely praised, and there are reports he may be busy fixing up another one between EDF and British Energy. It all plays well with his strategy of presenting himself as a good man to guide us through bad economic times. Will it be enough? Probably not. We'll soon find out. Stay with politics.co.uk throughout the week for the most comprehensive conference coverage available on the web. Ian Dunt

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Labour MP: This will be Brown’s last conference

Determined Gould wants Labour "fight"

Philip Gould calls on Labour to mirror his "fight"
Harry Potter author JK Rowling has donated ВЈ1 million to the Labour party.She said her donation was motivated by the party's record on child poverty and criticised the Conservative's plans to provide tax breaks for married couples. The financial gift will come as a major boost to prime minister Gordon Brown ahead of the Labour annual conference, which begins this weekend. In a statement Ms Rowling, who is worth an estimated ВЈ560 million, said: "I believe that poor and vulnerable families will fare much better under the Labour party than they would under a Cameron-led Conservative party. "Gordon Brown has consistently prioritised and introduced measures that will save as many children as possible from a life lacking in opportunity or choice. "The Labour government has reversed the long-term trend in child poverty, and is one of the leading EU countries in combating child poverty." Ms Rowling, who is known to be a personal friend of Mr Brown and his wife Sarah, added that the Conservative's tax plans discriminated against single parents. "David Cameron's promise of tax perks for the married, on the other hand, is reminiscent of the Conservative government I experienced as a lone parent. "It sends the message that the Conservatives still believe a childless, dual-income, but married, couple is more deserving of a financial pat on the head than those struggling, as I once was, to keep their families afloat in difficult times." In response, Mr Brown thanked the author for her donation, stating: "I am delighted that JK Rowling, who is one of the world's greatest ever authors, has made such a generous donation. "I thank her for supporting the Labour party and our values of social justice and opportunity for all." A number of celebrities have donated to the Labour party this year, including comedian Eddie Izzard, who gave almost ВЈ10,000 of his own money to the party.

Tories and Labour go toe-to-toe on poverty

Clegg speech as-it-happened

Mr Clegg's speech will close the Lib Dem conference
Welcome to politics.co.uk's As-It-Happens page. Here you can keep up to date with major parliamentary debates, press conferences or news events in real time. Just hit refresh on your browser to see the latest development.This event is now over, but you can see how it happened below. Nick Clegg walks on stage to considerable applause, but than you'd expect as the leader of a party at your own conference. Bear in mind Liberal Democrats are wise and unexcitable people, not given to euphoria or delirium. He begins by talking about what things were like a year ago. Gordon was popular, and no-one knew what a clever bloke Vince Cable was, apparently. Somethings have changed, it's true, but one wonders just how much of an impact Mr Cable has had outside Westminster. I wouldn't know. I don't have those kinds of friends. First joke of the night: Labour is a "zombie government, a cross between Shaun of the Dead and I'm Sorry I Haven't a Clue." How funny is that, really? Personally, I smirked. You're going to want more than that. Joke two: "Cameron's only aim was to make the Conservatives inoffensive. Problem is, once you strip out the offensive parts of the Conservative party, there isn't much left." It doesn't look like there's a tele-prompter, although it's hard to tell from here. Half of politics.co.uk is in the auditorium, where there's no wi-fi, while the other half is watching it from outside where there is. From here, it appears he's memorised the whole thing - impressive, although, frankly, I remember doing a similar job last year for David Cameron's speech and despite the fact I didn't believe a word he said, I couldn't win the fight against the gravity of his friendliness. Clegg on the other hand, seems competent, managerial, but gives no hint of ever having bowled anyone over, apart from, one can only presume, his wife. Joke three: "Cameron's hope is to become the Andrex puppy of British politics. A cuddly symbol, perhaps, but fundamentally irrelevant to the product he's promoting." We're now onto pretty serious territory, rather suddenly. "My basic view of human nature is that people are born with goodness in them. Of course, people can be selfish, cruel or violent – but I believe no-one starts that way. There is a terrible pessimism in the way Gordon Brown thinks we should all be organised from above, our every move controlled by the great puppet master in the sky. And there's pessimism too from David Cameron when he says that if you're overweight, vulnerable or poor, you're on your own." I'm convinced there's a teleprompter around so clever and little I can't spot it (it probably doesn't have to be that clever or that little to fool me). It's mainly because Clegg doesn't really move anywhere. There's a peculiar, soft-focus national socialism effect to the symmetry of his shape on stage. Standing bolt upright, dead in the centre, backlit by his own image, so that everything balances. Occasionally, he sort of judders. He never takes a single step anywhere, but he does sort of turn left and right (ho ho ho) and then judder a little. It's not as bad as it sounds, but, as before, it never rises above competent. He's now onto justifying the tax cuts - selling them from a staunchly left wing perspective. "I was talking to a pensioner recently - Joan. I could see the anxiety on her face. She was one of the million people who lost out from the 10p tax rate even after the so-called compensation package, struggling to pay every bill that comes through the door, worrying about getting through the winter. If you were Joan, what would you want? Your money spent on a management consultant's advice on a government IT project that will never work? Or your money handed back to you?" In fact, you'd be hard pushed to find a more left-wing speech from any of the main party leaders. Whether it's to cover his behind as he makes his tax cutting moves, or because he seriously believes it, there's some populist left-wing stuff going on here. A sample: "The very wealthy, the super-rich – should be paying more not less." "We'll ensure everyone makes a fair contribution – polluters, fat cats and non-doms included." "Under Gordon Brown tax has become voluntary for the super-rich and for giant multinational companies." He's also just made my eyes water with a fascinating little fact. Apparently, the government spends £18,000 a second. "They've taken, give or take a few, £16 million of your money since I started speaking. It'll be £38 million by the time I’ve finished." I wouldn't want to be too generous, but my emotional reaction to all that was precisely the one he wanted me to have. Like a child becoming more confident in the water, he's starting to take little baby steps around the stage now. The audience is warming to him as well. "No Kingnorth power station - no Heathrow expansion." They meet all this with decent sized cheers - for Liberals. He's making a pretty good job of linking environmentalism with an ethical foreign policy, saying we can't stand up to people like Russia or countries in the Middle East (for that read Saudi Arabia) because of energy dependence. It's a good, valid argument, made recently by Obama during his acceptance speech at the Democrat convention. Thinking about Obama's speech kind of deadens your appreciation for Clegg's. I won't do that again. It pays to maintain interest, sometimes literally. Joke four: "There was a great story I heard recently about a little girl, doing a painting in class. The teacher comes over and says – what are you painting? And the girl says – God. So the teacher says – but no-one one knows what God looks like. The girl says – they will in a minute." Don't ask me the connection - it's basically all about how much Clegg loves children, and how much Gordon Brown is ruining their precious souls, but the audience take to it well enough. Apparently the Lib Dems want to make education 'people shaped'. I have no idea either. We're onto surveillance now, tracking chips in bins - that sort of thing. "They have taken our liberty from us and given us nothing in return," he says. His solution is to let communities "decide what's right for them and do it". I'm never quite sure what that sort of thing means in practise, but leader's speeches aren't Q&A sessions. It goes down OK with the audience, although I can only repeat - there doesn't appear to be much Bacchic political frenzy going on. Liberal Democrats, yes, but you'd still expect something more substantial than this. Another interesting fact: "In 2001 for the first time ever, more people didn't vote than voted for the winning party." An unpleasant little fact and I'm glad I know it. We're now onto that interminable section of a Lib Dem leader's speech in which he insists to his audience the party is heading for government. Yes, you think. Or on the other hand, perhaps not. "We can do it, because we are the vanguard of British politics," he says. It's like some weird netherworld of imagination the yellow people occasionally forage into and every time they do, you think: Come now. Stop being silly. We're well into the dramatic climax now: "Remember 1997? Things can only get better? We were told our country would be a success – and no-one would be left behind. It didn't happen. New Labour failed. But there is a new, New Labour on the block. Blue Labour: the Conservative party. Let our country not be fooled again. If you were drawn to Labour in the 1990s because you believed in a better future, because you were filled with hope that things would get better - join us. We are the ones who can make it happen. Labour is finished. It's over. The Liberal Democrats are now the only party that can deliver social justice. The Liberal Democrats. Join us, and make it happen." The section about social justice receives the warmest, most sustained applause of the night. It's the one moment the audience is well and truly with him, and it sort of took my by surprise. It also highlights the slightly - and I don't want to take this too far - lacklustre response of the audience. Be that as it may, they are jumping to their feet right now, clapping away furiously, giving him an extended standing ovation. There are no leadership issues flying around, so the duration of the ovation is irrelevant. I certainly don't intend to count. It was very well written speech - not as funny as whoever wrote it assumed - but full of interesting facts and imaginative intertwining of ideas and politics. Mr Clegg, competent but short of remarkable, can come away from the conference happy with the majority of it. He may have gone a couple of facts wrong and lost media attention to financial and Labour leadership stories but he has made the first successful steps in marking out a different political direction to the other main parties. Talking about tax cuts in definitively left-wing terms is not something you usually consider. It's a high risk strategy, but then his predecessors did worst when they failed to be gutsy and did best – think Kennedy and Iraq - when they took the plunge. He has every right to a minor spring in his step on his way back to London.

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Brown will miss housing target

Brown will miss housing target
Gordon Brown will fail to hit his target of three million new homes by 2020 according to a senior figure in the housing industry.David Orr, chief executive of the National Housing Federation (NHF), said today unless radical action is taken only 1.6 million homes will be completed by 2020 and the full three million will only be reached by 2029. It is the government's target to build two million new homes by 2016 and a further one million, carbon neutral, homes by 2020. He said: "With the global credit crunch worsening, and conditions getting tougher for all house builders, it is time to recognise that the very commendable 2020 target is now almost impossible. “The climate for house building has changed beyond all recognition, for both private developers and social house builders. The number of homes being built is falling, and we need the government to take further action to put the programme back on track.” He added the prime minister was "both brave and right" to put housing on centre stage. “He is rightly aware that too many people are living in cramped and unsuitable conditions and that more than five million people will soon be on waiting lists for social housing.” However, he said with the private sector badly damaged and the number of new privately built homes plummeting, support should be given to housing associations. Mr Orr claims, with the right support, housing associations could build some 70,000 new homes a year by 2011, from the current level of 30,677. The government maintains it is still committed to reaching the housing target. A spokesperson for the Department of Communities and Local Government, said: "We are being flexible and responsive given the current economic climate. "We remain committed to our overall housing target as the right long-term goal, whilst recognising the scale of the challenge this entails. However, we must remain as ambitious as possible." Earlier this month, the government did launch a serious of measures to bolster the property market – including £400m to boost spending power for social housing providers – however ther have been criticised for being too little too late.