LONDON (Reuters UK) - Prime Minister Gordon Brown said on Monday there was growing international agreement on the need for "rapid, coordinated and concerted action" through budgetary measures to counter the economic downturn.
"The downturn can be shorter and less deep if Britain takes action and if that action is matched elsewhere," Brown said while briefing parliament on Saturday's Washington meeting of world leaders on the global financial crisis.
"It is of course for individual countries to make their own announcements, as we will in due course," Brown said. "The more coordinated the action, the greater the benefit to each country will be."
"But I believe the emerging consensus across the world -- from the IMF itself and from governments of left and right, and in developed and developing countries -- is that we should, take rapid, coordinated and concerted action through the use of budgetary measures," he said.
World leaders pledged rapid action on Saturday to rescue the global economy from the worst financial crisis in over 70 years.
Brown said Britain, next year's chair of the G20, would lead preparations for a follow-up summit, the date and venue of which he said would be announced next week. The next meeting is expected to be held before the end of April.
Chancellor Alistair Darling is expected to announce measures to increase borrowing, reduce taxes and bring forward public spending when he presents the government's pre-budget report next Monday.
Brown's government hopes a fiscal stimulus can soften the blow of the recession which economists say will hit Britain.
The central problem facing the world economy over the last year was inflation, driven by a sharp rise in international commodity prices, Brown said. But this year the reality was sharp falls in commodity prices, he said.
INFLATION NO LONGER A THREAT
"The risk in this new environment is not stagflation but rather the impact on the economy of close-to-zero inflation at the time of a downturn. So it makes sense for governments to support interest rate cuts with fiscal action," he said.
Brown blasted the opposition Conservatives for suggesting that his plans to let borrowing rise could cause a run on the pound.
"I have never ... given a running commentary on the currency, as the opposition seem to want to do. I think it is highly irresponsible for them to do this in the present circumstances," he told parliament.
"A year ago the dollar was at a low level, this year the pound is at a low level. Currencies change. If they wish to give a running commentary on sterling, they are not responsible to hold the position of even opposition," he added.
Conservative finance spokesman George Osborne caused a storm at the weekend by venturing into a traditional political no-go area and highlighting the risk of a run on the pound.
The pound fell to a 13-year low against a basket of currencies on Friday, including a record low against the euro, on expectations that Britain will cut interest rates again to try to boost its ailing economy. The Bank of England slashed rates by 1.5 percentage points this month.
The Conservatives appear to be struggling while Brown's popularity has risen over his handling of a credit crunch.
(Reporting by Adrian Croft, Frank Prenesti; Editing by Toby Chopra)
