Ed Balls, the prime minister’s closest ally, on Sunday warned of “tougher” times ahead but insisted that the economy would rebound – as soon as next year – to help Labour clinch a fourth term in office.

The upbeat assessment from the schools secretary came as Gordon Brown revealed plans to proclaim a “bright future” for Britain at the Labour party conference, with a speech that will attempt to grab public attention by touching on his experiences of personal adversity.