The Prime Minister said he was ready to take "unpopular decisions" to make sure people suffered as little as possible from rising prices and the credit crunch fallout.

He also hit out at "gossip" over his position, stressing he would not be "put off" from doing his job.

Speaking at his regular Downing Street press conference, Mr Brown said he had a record of handling the economy competently.

"I feel that I am in the right position to be able to sort out the problems that we have now," he said. "We will not hesitate to take whatever action is necessary to take the British economy through difficult times."

Asked if any of his Cabinet colleagues were capable of leading the country, Mr Brown replied: "Of course they are capable of doing the job, but I'm doing the job ...

"To be honest, I'm not going to be put off by the sort of gossip you are indulging in."