BRITAIN: BRITISH PRIME minister Gordon Brown has conceded that Britain is heading into a likely recession that will define his fight for political survival along a hard road to the next general election.
Following on from the warning from Bank of England governor Mervyn King, Mr Brown yesterday maintained this "global recession" was not home-grown but had its origins in developments in the US housing market.
Mr Brown told MPs the economic downturn was likely to see "recession in America, France, Italy, Germany, Japan and - because no country can insulate itself from it - Britain too". In a confident performance Mr Brown also listed the contradictory positions adopted by the Conservative opposition during the gathering economic storm, insisting that Labour would "do what is right" for Britain "with or without" the support of Tory leader David Cameron.
Mr Cameron in turn made no pretence of bipartisanship as he launched an exasperated attack on Mr Brown's stewardship of the economy - repeatedly challenging the prime minister to admit he had been wrong in claiming to have abolished "boom and bust".
Continuing his campaign to identify Mr Brown personally with the financial and economic crisis, Mr Cameron charged that the prime minister had been unable "to lecture the banks" on lending because he himself had been "borrowing so much", nor, likewise, "on transparency, because he was hiding so much".
That in turn prompted laughter from the Labour benches, as Mr Brown gestured toward the Conservative frontbench where shadow chancellor George Osborne sat under a cloud following claims - hotly denied - that he had tried to solicit a £50,000 (€63,000) donation for the Conservative Party from Russian oligarch Oleg Deripaska.
Mr Osborne's position appeared secure after Mr Cameron insisted the shadow chancellor had been "right" not to seek a donation as the Conservative Party had been right not to accept one. But there was evident nervousness in Tory ranks as Mr Osborne waited to discover whether his old university friend, financier Nathaniel Rothschild, was preparing to make further allegations in an escalating row seemingly triggered by broken confidences at a party Mr Osborne and newly-appointed business secretary Lord Mandelson attended in his villa in Corfu during the summer.
The Daily Mailheadlined the allegations about potentially illegal donations against Mr Osborne and the possible "Revenge of Mandelson" yesterday amid reports that Mr Rothschild was "incandescent" with rage after Mr Osborne had earlier divulged private conversations with Mr Mandelson while enjoying Mr Rothschild's hospitality. Mr Mandelson, then EU trade commissioner, had allegedly poured "poison" into Mr Osborne's ear about the prime minister.
Mr Brown maintained the pressure on Mr Osborne when he suggested "this very serious matter" should be "investigated by the authorities". The prime minister was responding to an invitation from veteran Labour MP Dennis Skinner to give a promise that, whatever was necessary to deal with the country's economic difficulties, he would "never, ever meet a Russian billionaire to try to cadge the money . . ." Labour MPs enjoyed Mr Skinner's attack on his least-favourite Tory.