“If there is further intervention appropriate for the Government to take, we will consider it. But that’s not for now.”

The cabinet’s away-day got under way yesterday morning with Gordon Brown taking a tour of the Albert Dock and the new Museum of Liverpool, which is currently under construction, accompanied by Culture supremo Phil Redmond.

Chancellor Alistair Darling attended a business breakfast at the Malmaison Hotel at which Jack Stopforth, chief executive of Liverpool Chamber of Commerce, told the Chancellor that some Government policies were “absurd”.

More than 20 official visits were carried out across the region yesterday.

Mr Brown and the rest of his cabinet, apart from Foreign Secretary David Miliband who was in New York attempting to solve the Gaza crisis, took part in a “listening event” ahead of the cabinet meeting.

Newton-le-Willows born Culture Secretary Andy Burnham said it was his proud duty to welcome the cabinet to the city at the end of its tenure as European Capital of Culture.

At the event, which was designed to show that ministers are in touch with recession-hit Britain, Mr Brown acknowledged that further Government action was necessary.

“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.

“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.”

He hailed the city’s tourist success over the past year as European Capital of Culture, saying it was an example to the rest of the country.

“I think the whole country has looked to Liverpool and learnt from Liverpool,” he said.

Labour leader Coun Joe Anderson said: “I think we are in for some very, very stormy times ahead, but if we face these stormy waters with a captain that knows how to get us through we should be confident.”

FOR a full transcript of the Daily Post’s interview with Lord Mandelson, visit blogs.liverpooldailypost.co.uk/dalestreetblues/

davidbartlett