Brown dismisses talk of leadership coup over Libya as he gets 'back to business'

Gordon Brown brushed aside fresh speculation about his leadership today as ministers criticised his handling of the Libya row.

As the fallout from the Lockerbie controversy continued, senior backbencher Jon Cruddas warned Labour would go down to "catastrophic defeat" unless the Prime Minister changed his message to voters.

But Downing Street insisted "the Government is back in business" and the Prime Minister chaired the first meeting of his new Domestic Policy Council to discuss health and the police.

Lawyers acting for IRA terror victims killed with Libyan semtex also met senior officials at No 10 to discuss Foreign Office help with their campaign.

Mr Brown's spokesman shrugged off criticism from one unnamed Cabinet minister there was now "Government by fiasco".

Asked if the Prime Minister had made any mistakes this summer, the spokesman said the situation in Afghanistan had been "difficult" but there was now "real progress".

He said Mr Brown was focusing on the G20 in Pittsburgh this month. "He's focused on the issues," the spokesman said.

He added that Cabinet minister Ed Balls had not been reprimanded for suggesting yesterday Mr Brown had privately opposed the release of the Lockerbie bomber.