Brown grilled by MPs over recession

The Prime Minister's appearance before the Commons Liaison Committee is the first since the taxpayer-funded bank bail-outs, VAT cut and other measures were introduced last year in a bid to counter the downturn.

But with the Bank of England Governor warning of a far more severe slump than expected and unemployment soaring to a decade-long high, the high-level panel will want to know whether the action is working.

Mr Brown's judgment will also come under scrutiny in the wake of the resignation of his appointee Sir James Crosby as deputy chairman of City watchdog the Financial Services Authority (FSA).