David Cameron came out fighting today in the face of falling opinion poll ratings over the recession, demanding an early election to let the public have their say.

Faced with a poll in The Times showing that Labour has a nine-point lead as the party most trusted to deal with the economic crisis, the Conservative leader launched a bullish attack on the Prime Minister's policies of borrowing to finance a fiscal stimulus.

Today's poll found that Mr Brown and Alistair Darling, the Chancellor, are favoured over Mr Cameron and George Osborne, the Shadow Chancellor, by 40 per cent to 31 per cent in terms of dealing with the recession - a six-point jump in their lead since the Pre-Budget Report was presented on November 24.

The boost leaves the overall Conservative poll lead narrowing to just four points and the number of Labour voters who are considering switching to the Tories dropping markedly.

But Mr Cameron reiterated that he was right to oppose the Government's record levels of borrowing, calling on Mr Brown to call an early election and let the public decide on the weight of their arguments.

"I am desperately worried that this Government is leaving the country in so much debt that in future generations we are going to have the public finances of Italy, and we are going to be paying this off for generations. I think they are making a massive mistake now," he told BBC Radio 4's Today programme.

"I know that opposition leaders always call for an election, but I think we really need one. None of this was in Labour’s manifesto, and they are asking people to go ahead with a borrowing binge now that is going to load up taxes and debt for future generations.

"I want to stop that now and the only way to stop it is to have an election."

The Tory leader's comments came on another day of gloom, which included the publication of figures showing the economy shrinking by more than initially thought in the period between June and September - and suffering its biggest slump since January 2003.

The measure of industrial production, which counts for just under a fifth of Britain's GDP, fell by 1.7 per cent in October, while output by manufacturers dropped by 1.4 per cent, the eighth consecutive monthly fall and the longest decline since 1980.

UK GDP during the third quarter was initially believed to have fallen by 0.5 per cent, but the actual decline - taking into account today's data - is now expected to show growth contracted by 0.6 per cent.

Speaking at the London School of Economics (LSE) this morning, Mr Cameron said that Mr Brown's solution to the rapidly worsening economic situation would not provide the necessary boost in public spending.

"If people know that they are going to be hit by massive tax rises in a couple of years, they are less likely to spend their money now," he said.

The Conservative leader acknowledged that some international figures supported the fiscal stimulus - but added that Britain's borrowing levels were already so high that it could not afford it.

He reiterated that a Conservative government would not match Labour spending plans for 2010 and suggested that, if spending was held back now by a Conservative Government, then the 45 per cent tax rate for higher earners and 0.5 per cent National Insurance increase pencilled in by Mr Darling for 2011 may be avoided.

"Labour are using this crisis to suspend all reasonable fiscal principles," Mr Cameron said. "Their argument is that the exceptional crisis we face today excuses the most extreme, reckless action - and tomorrow can take care of itself.

"But this is the kind of short-term economics that helped get us into this mess in the first place."

Brushing aside The Times poll suggesting Mr Brown's expertise on the economy was winning voters over, Mr Cameron claimed he was "not at all" worried about the findings.

"The polls come and go and they say different things," he said, pointing to other polls published last weekend which he said put the Conservatives between 11 and 15 points ahead. He said he would keep making his arguments. "This is too important to leave to an election in 2010," he added.

However, responding to calls for an early election and Mr Cameron's continued rejection of Mr Brown's plans, the Prime Minister's spokesman said the Tory leader could seriously harm the economy.

"Clearly what the public would expect is for their Government to govern," he told reporters."That is what we are doing with the action we are taking in order to get families and businesses through the downturn fairly."

The economy dominated this morning’s hour-long Cabinet meeting, he added. "What the Cabinet was unanimously clear about was that failure to take action now would mean a longer, deeper and more protracted recession, which could have potentially permanently damaging effects on the British economy," he said.

"That is clearly something the Government will do everything in its power to avoid."

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