David Cameron backed curbs on City bonuses as part of a crackdown on financial regulation, but pledged to avoid “bashing the financiers” rhetoric, as he sought on Sunday to regain the political initiative in the markets crisis.

The Conservative leader used the opening day of his party’s annual conference to lead a session on the credit crunch, which had been hastily parachuted into the programme to replace a scheduled celebration of recent Tory election victories. Mr Cameron is facing his worst polls for some months, as voters respond positively to Gordon Brown’s handling of the financial turmoil. The opposition party’s initial defence of the City, seized on by Labour, has also left it appearing on the defensive.