'Unbridled' capitalism one cause of crisis, says Brown

Gordon Brown warned today that the financial crisis had exposed the "weaknesses" of unfettered capitalism, insisting the markets had to be underpinned by society's values.

While maintaining that he was pro-business, the Prime Minister said certain "key ethics" were essential for a stronger economy.

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Writing in the Daily Telegraph, he said financial systems must reflect the values of "fairness, stewardship and co-operation" cherished by families and communities.

"I admire the market's ability to release the dynamism and enterprise of people and so this new Labour Government is pro-business and pro-markets and always will be," the premier said.

"But I also know that we do not live by markets alone. I have long understood that markets rely on values that they cannot generate themselves.

"Values as important as treating people fairly, acting responsibly, co-operating for the benefit of all."

Mr Brown said developments around the world were raising "quite fundamental questions" about the relationship between the government and the markets.

"The first financial crisis of the global age has now laid bare the weaknesses of unbridled free markets," he added.

The Prime Minister's newspaper article came as hostilities broke out between the Government and the Conservatives over the financial crisis.

David Cameron sought yesterday to lay the blame for the looming economic recession at the door of Mr Brown.

The Tory leader effectively ended what remained of the tentative political truce on the issue, arguing that the current financial crisis had exposed Mr Brown's policies as "a complete and utter failure".

His attack came amid signs of Tory concern at the way that Mr Brown has been picking up international plaudits - as well as opinion poll ratings - for his handling of the financial crisis.

The latest ComRes survey for BBC2's Daily Politics showed Mr Brown and Chancellor Alistair Darling almost doubling their lead over the Tories as the team they most trust to lead them through the crisis.

In all, 42% chose Mr Brown and Mr Darling - up two points from a fortnight ago - while Mr Cameron and shadow chancellor George Osborne were down three points on 31%.

In a speech to City leaders, Mr Cameron said: "Gordon Brown is hoping that his whirlwind of summitry will mean that we will forget what has come before.

"Forget that - as we enter a downturn, where jobs, home and livelihoods will be lost - that he was the one who created this mess in the first place.

"But I won't forget - and the British people won't forget."

Cabinet minister Alan Johnson hit out at the Tory leader for resorting to party politics.

"David Cameron tried grown-up politics for a couple of weeks but clearly it was not to his liking," Mr Johnson, the Health Secretary, said.

"It is now obvious that the offer of support at this difficult time from Her Majesty's Opposition was an expedient designed to help the Tories through their conference rather than a meaningful attempt to help the British people."

The Government is also under pressure to curb state-owned Northern Rock's "aggressive" repossession tactics.

Meanwhile, the charity Credit Action urged the Treasury to put pressure on Northern Rock to adopt a more flexible approach towards borrowers who fall behind on their mortgage payments.

The charity said that Northern Rock, which was nationalised in the wake of last year's catastrophic bank-run, was more than twice as likely to repossess homes as other lenders.

Of the 19,000 homes repossessed in the first half of this year, around 4,000 were by Northern Rock.