TORIES READY TO HELP ON ECONOMY

Outside the Treasury Mr Osborne said his party still had many serious questions to ask about how the economy had ended up in the present position.

But the public, he said, needed to see politicians co-operating in such circumstances not engaging in the "bitter" fighting that had blighted economic rescue attempts in the US.

He said: "I am very grateful to Alistair Darling for agreeing to meet me and we had an extremely constructive meeting.

"I made it clear that the Conservative Party stands ready to do whatever we can to help in this extremely difficult situation and bring some stability to the British economy.

"I offered our support in getting the banking legislation through the House of Commons in a week's time, I said that we didn't want to see the kind of bitter partisan division we have seen in the United States and that the British public would expect us to work together to try and bring that stability and heal some of the anxieties the people have about their jobs, their savings.

"And I am very glad that Alistair Darling agreed that we should work together."

The opposition would not write "a blank cheque" or fail to ask the right questions about proposed solutions.

"But we will do so in a spirit of co-operation because I think that's what the British people want to see at a time like this."