The chancellor will today use a speech to the Social Market Foundation to mount a new offensive to restore confidence in his management of the economy.

Following the economic downturn and the stock market slide, Gordon Brown will say Britain is well prepared for the turbulent times ahead.

Departing from his "end to boom and bust" soundbite, the chancellor will argue that "the true test of economic policy is whether it can cope with difficult as well as good times".

He will say that the British economy will demonstrate "credibility and resilience" over coming months and will also claim that he has "no principled objection" to the private finance initiative expanding into other areas.

Brown will also say that markets can be a force for good.

He will argue they are "a means of advancing the public interest".