Brown's stock rises as voters endorse handling of crisis

Gordon Brown's intervention in the economic crisis appears to have paid off today, with a poll showing that Labour has enjoyed a "bounce" at the expense of the Conservatives.

As the Labour conference opened in Manchester, with the Prime Minister having been given weeks to save his premiership, the survey for The Independent on Sunday reveals that the Tory lead has nearly halved, from 21 points to 12.

Despite this apparent good news for the Prime Minister, the turmoil within the Cabinet is likely to continue. In an interview with the IoS today, Hazel Blears, the Secretary of State for Communities, suggests that Mr Brown lacks "emotional intelligence" and that the Labour MPs who are demanding a leadership contest are "people who want to see us do well". In an attempt to damp down speculation, Downing Street was forced to deny a claim by Alan Johnson that Mr Brown would serve one term before stepping down.

Mr Johnson suggested he could join David Miliband on a "dream ticket" in a leadership contest by ruling himself out from standing. The Secretary of State for Health also praised the Foreign Secretary as a "real talent".

Mr Johnson infuriated No 10 when he stated: "Gordon Brown has said that if elected he would serve for one term, and when Gordon Brown has decided his one term is over, or when he has decided to step down, then we will have a discussion. I think David [Miliband] has got a great future in the party."

Downing Street insisted that Mr Brown had never said he would serve one term, and said it was a "matter for the British people" how long the Prime Minister would remain in power.

As he took to the conference stage, apparently buoyed by more favourable coverage than for some time, Mr Brown pledged to do "whatever it takes" to protect the British economy. The ComRes poll for the IoS put the Conservatives on 39 per cent, down seven points on August, while Labour is up two points, on 27 per cent. The Liberal Democrats are up five points on 21 per cent.

While the Lib Dems were expected to enjoy an increase in support because of media coverage of their conference last week, the seven-point reverse for the Tories will cause concern for David Cameron.

The poll shows Mr Miliband does not have support among voters, with 47 per cent disagreeing that he would make a better Prime Minister than Mr Brown. Nearly six out of 10 voters agreed that, "with the economy in its present state, now is the wrong time for Labour to think of changing Prime Minister"; 36 per cent disagreed.

If Mr Brown were to be replaced as Prime Minister, 71 per cent said that there should be an immediate general election.

Some 46 per cent said the Conservative Party was "not yet ready for power", while 43 per cent disagreed.

Labour's two-point increase reflects in part voters' approval of Mr Brown taking a leading role in the Government's reaction to sliding markets following last Monday's collapse of Lehman Brothers.

The poll was taken on Wednesday and Thursday, after it emerged on Tuesday that the Prime Minister had intervened to push for the takeover of HBOS by Lloyds TSB, but before the emergency ban on short-selling of shares on Thursday evening.

Mr Cameron and his shadow Chancellor, George Osborne, remained quiet during last week's economic upheaval. In a week when the economy took centre-stage, the seven-point slump suggests that the issue remains a weak point for the Conservatives 16 years after Black Wednesday, and that Mr Cameron has not completed the job of "decontaminating" his party.

But the survey also shows how Mr Brown's fate is now closely tied to the future of the economy. There were suggestions that the increase could be a "dead cat bounce", a City term for a tiny and superficial recovery in share prices after a stock market crash. Mr Brown appeared to have bought some time from cabinet ministers when Mr Miliband urged the party to unite behind the Prime Minister.

Yet major profile interviews with the Foreign Secretary in The Times and the Daily Mirror fuelled speculation that Mr Miliband has positioned himself as prime-pminister-in-waiting. Crucially, he appeared to have won the support of Mr Johnson, who has broader support in the Labour Party and was seen as the only real threat to the Foreign Secretary in a contest.

The stay of execution now gives the Prime Minister some scope to recover his leadership, but he faces the threat of more resignations after the conference.

In her interview, Ms Blears said: "When people think about Gordon, it might be that he's a bit serious and dour – but experienced... People make their political decisions not just rationally, but emotionally as well, and I think our government needs to be more emotionally intelligent, and the bit that Cameron has got is a language." Asked whether Mr Brown could be accused of not having emotional intelligence, Ms Blears said: "Quite."

One of Mr Brown's closest political friends, Lord O'Neill, told STV: "If we had a situation next June, after the European elections, that Labour was really very badly routed, then I think there would have to be very serious discussions and I suspect that there would probably have to be a change of leadership then."

But in a video message to the conference, Sir Alan Sugar said: "One thing we can all agree on is that Gordon was the best Chancellor of the Exchequer this country saw for many, many years. Who better to be in place when we have an economic problem than him? Dare I say to those who aren't happy: get out: have the balls to get out. And those of you who are left: get behind the Prime Minister in the times ahead."

The shadow Chancellor, George Osborne, said: "He personally created the system of regulation that failed in the face of global crisis. When he treats people like fools, no wonder they treat him with dismay."

Donation: Rowling's £1m gives Labour the magic touch

"We now have behind us the absolute magical power of Harry Potter." With those words, briefly, Gordon Brown silenced his detractors.

Despite being criticised for lacking the magic touch, the Prime Minister got a sprinkling of stardust yesterday from the creator of the world's most famous wizard.

The Labour conference was lifted on the first day with news that J K Rowling had endorsed Mr Brown's leadership with a £1m gift.

But the donation to a Labour Party struggling with debts of almost £18m was not just a warm gesture from a friend with more than half a billion pounds in the bank.

"I believe poor families will fare much better under the Labour Party than they would under a Cameron-led Conservative Party," said Ms Rowling, who was a poor single mother before finding success in her writing career.

"Gordon Brown has consistently prioritised and introduced measures that will save as many children as possible from a life lacking in opportunity.

"David Cameron's promise of tax perks for the married, on the other hand, is reminiscent of the Conservative government I experienced as a lone parent."

Brian Brady