The prime minister has stood by his plans to increase government borrowing in order to “support economic activity”. Mr Brown said that the government was “responsible” for improving the UK’s economic situation.

However, opposition parties have attacked the current levels of debt, warning that the Britain is not prepared for a recession. Some leading economists say the government should be implementing tax cuts instead of the government’s plans.

The latest quarterly public debt figures have hit a record £37.6 billion – higher than the whole of the previous year.

Mr Brown said in a speech that fiscal policy would be used o “kick-start” the economy and that he believes a temporary increase in borrowing is the right way to go. He feels that this will “help people through difficult times”.

He added that when the economy began to recover and tax revenues increased, borrowing levels as a share of economic out put would then come down.

The PM defended his government’s measures to support the turbulent economy including help for small businesses and homeowners to fight the threat of repossessions.

“I can see why people are insecure and worried about their future,” he said.

However, on a visit to Glenrothes in Scotland, Mr Brown predicted that food and fuel bills would start to fall next year, hinting that falling oil prices could leas to further interest rate cuts.

“Now inflation is actually coming down over the next few months and that will mean that it gives scope to all the monetary authorities, including the Bank of England, round the world to make a decision about interest rates,” he said.

There have been growing calls for the PM to cut borrowing further, but Mr Brown added that it was “not up to him” to tell the Bank of England what to do.

He added that action on monetary policy did have a “role to play” in helping support the economy.

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