We can balance economic growth and green policies, Brown tells CBI leaders

Brown is backing the construction of a third runway at London's congested Heathrow airport - a plan fiercely opposed by environmentalists - while repeating a commitment to cut emissions of the greenhouse gases blamed for climate change by 60 per cent by 2050.

"We know ... that even as we place strict environmental limits on noise and air pollution and ensuring aviation pays its carbon costs, we have to increase capacity at our airports, particularly Heathrow," Brown will say.

"Our prosperity depends on it: Britain as a world financial centre must be readily accessible from around the world."

Brown's CBI speech also contains proposals to simplify planning procedures for major infrastructure projects such as the long-awaited east-west Crossrail train line across London, and gives notice that a decision on building a new generation of nuclear power stations will be announced in the new year.

On a visit to a Commonwealth leaders' summit in Uganda this weekend, Brown said Britain's economy would continue to grow despite fallout from the subprime mortgage crisis in the US, which has rocked world markets and slowed the US economy. "Whatever the ups and downs of the world economy, the short-term fluctuations we face, we must continue to make the right long-term decisions for Britain," Brown will say today.

By investing in energy and transport infrastructure and skills training for the work force, he said, "we can make this country a model of both stability and progress in an uncertain world of unlimited opportunity".

The Prime Minister's appearance at the CBI conference, which will also be addressed by leaders or potential leaders of the other main parties, will be studied closely in the light of the apparent loss of confidence in the former chancellor's ability to project an image of stability-enhancing solidity in recent weeks.