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| Version 3 | Version 4 |
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| Brown seeks to calm economy fears | Brown seeks to calm economy fears |
| (10 minutes later) | |
| Gordon Brown has said the UK is well placed to deal with global economic crises, after figures showed a sharp decline in house prices. | Gordon Brown has said the UK is well placed to deal with global economic crises, after figures showed a sharp decline in house prices. |
| The prime minister said a 2.5% fall in March, recorded by the Halifax, should be seen in the context of 10 years of big increases and low interest rates. | The prime minister said a 2.5% fall in March, recorded by the Halifax, should be seen in the context of 10 years of big increases and low interest rates. |
| He added that the government was not a "spectator" and was "always vigilant" on global economic difficulties. | He added that the government was not a "spectator" and was "always vigilant" on global economic difficulties. |
| He insisted the UK was in a much better position than in the early 1990s. | He insisted the UK was in a much better position than in the early 1990s. |
| 'Difficult situation' | 'Difficult situation' |
| The 2.5% house prices fall in March was the biggest monthly decline since September 1992, the Halifax said. | The 2.5% house prices fall in March was the biggest monthly decline since September 1992, the Halifax said. |
| The Halifax says house prices are now 1.1% higher than they were a year ago, the slowest annual growth rate for 12 years. | The Halifax says house prices are now 1.1% higher than they were a year ago, the slowest annual growth rate for 12 years. |
| Because we've got low inflation we can cut interest rates, because we have had low debt, we can afford to keep our public spending programme in line Gordon Brown href="/1/hi/business/7336010.stm">House price 'sharp decline' | |
| Mr Brown cited the US credit crunch - which has led to falls in property prices there - saying the whole world was "in a difficult situation arising from what's happened in America". | Mr Brown cited the US credit crunch - which has led to falls in property prices there - saying the whole world was "in a difficult situation arising from what's happened in America". |
| But, he said in an interview with BBC political editor Nick Robinson, the number of UK homes being repossessed was a "fraction of what happened in the early '90s". | But, he said in an interview with BBC political editor Nick Robinson, the number of UK homes being repossessed was a "fraction of what happened in the early '90s". |
| Ministers would be meeting the Council of Mortgage Lenders to "discuss the kind of arrangements" needed to help homeowners and homebuyers, Mr Brown added. | Ministers would be meeting the Council of Mortgage Lenders to "discuss the kind of arrangements" needed to help homeowners and homebuyers, Mr Brown added. |
| Tax changes | Tax changes |
| He said the government had taken the correct "long-term decisions" on the economy, contrasting the position now to the world economic downturn in the early 1990s. | He said the government had taken the correct "long-term decisions" on the economy, contrasting the position now to the world economic downturn in the early 1990s. |
| "If you look back 15 years... we had 15% interest rates, 10% inflation, rapidly rising unemployment, public spending having to be cut, taxes having to rise dramatically. | "If you look back 15 years... we had 15% interest rates, 10% inflation, rapidly rising unemployment, public spending having to be cut, taxes having to rise dramatically. |
| The PM rejects suggestions that he is "in denial" about the state of the British economy Nick Robinson, BBC political editor Read Nick's thoughts in full | |
| "If you look at this situation, because we've got low inflation we can cut interest rates, because we have had low debt, we can afford to keep our public spending programme in line and to borrow at the right time to help the economy come though difficult times. | "If you look at this situation, because we've got low inflation we can cut interest rates, because we have had low debt, we can afford to keep our public spending programme in line and to borrow at the right time to help the economy come though difficult times. |
| "And that's why people are forecasting that British growth will be higher than growth in other countries who are equally affected by what's happening around the world." | "And that's why people are forecasting that British growth will be higher than growth in other countries who are equally affected by what's happening around the world." |
| During the interview he also defended the recent abolition of the 10% lowest income tax rate, which has been criticised by Tories, Lib Dems and some Labour backbenchers, who say it is hitting the lowest earners. | During the interview he also defended the recent abolition of the 10% lowest income tax rate, which has been criticised by Tories, Lib Dems and some Labour backbenchers, who say it is hitting the lowest earners. |
| Mr Brown said it was one of a package of measures in the last Budget which, as a whole, saw those on the lowest incomes gaining the most. | Mr Brown said it was one of a package of measures in the last Budget which, as a whole, saw those on the lowest incomes gaining the most. |
| Asked about Labour MPs criticising him, he said he was taking the right "difficult long term decisions" and that over "the next few months" people would see the results. | Asked about Labour MPs criticising him, he said he was taking the right "difficult long term decisions" and that over "the next few months" people would see the results. |
| He said his government "would not play to the gallery" and would be judged in the long term. | He said his government "would not play to the gallery" and would be judged in the long term. |