PM promises more lending measures

Mr Brown was shown Liverpool's docks area ahead of the cabinet meeting

Prime Minister Gordon Brown has promised further measures to ensure banks resume lending, warning that this was "vital" to the economy.

Businesses were "worried" and homeowners needed more security, he said on a visit to Liverpool.

The UK must be a leader in "new type of world economy", with tourism among the areas to be expanded, Mr Brown added.

But the Tories accused him of a "lack of interest" in tourism, while the Lib Dems called his words "hollow".

'Urgent action'

Mr Brown and his frontbench team were in Liverpool for a two-hour cabinet meeting - the third to be held outside London since September.

It came on the same day as the Bank of England reduced interest rates to 1.5% in an effort to stimulate lending.

In a speech ahead of the meeting Mr Brown said he had acted on the concerns felt by businesses, adding: "That's why we had to take urgent action a few weeks ago, when we had to recapitalise the banks - and we were the first country in the world to do it, but others have followed us.

We are in difficult world times. I don't think anybody is in any doubt about that Gordon Brown

"And that's why in the next few weeks we are looking at the measures we can take to take the next step, and take it with effect, and that is to get the banks to resume the lending that is necessary."

If banks did not lend to firms and homeowners, the UK would lose "an important function that is vital to every part of the country".

After the meeting, a Downing Street spokesman said: "In the face of this difficult global economic situation, both the prime minister and chancellor made clear that we would continue to work not only to give real help to families and businesses in Britain now, but to work with our international partners to tackle the global economic downturn."

He added that Mr Brown would discuss the "next steps forward" in dealing with the crisis with fellow world leaders.

The prime minister is on a tour of the English regions and Wales to explain how the government is handling the downturn.

'Great industry'

Ahead of the cabinet meeting Mr Brown told 200 tourism chiefs gathered at Liverpool's Arena and Convention Centre that the city's regeneration was an example of how British tourism could benefit from burgeoning world tourism, as economies such as China and India develop.

He said four million British jobs depended on tourism, which generated