Portillo: It's a matter of honour

Earlier, Mr Brown denied he had lied about UK Formula One boss Bernie Ecclestone's controversial �1m donation to the Labour Party.

He also attempted to dampen growing anger amongst older voters, by unveiling plans for a new deal for the UK's poorest pensioners.

And he rejected the 60-day deadline set by fuel protesters, saying that any changes would have to be made through the usual budget process.

�1m donation

Mr Brown has faced repeated questioning about an interview in 1997, when he said he did not know about a �1m donation to the Labour Party from Bernie Ecclestone.

I would not lie, I did not lie

Gordon Brown

He acknowledged that Prime Minister Tony Blair told him about the donation, but said Mr Blair only asked him for advice on "procedure" and did not give him details about the position.

"There is a dividing line between the work I have got to do for the country and the work that other people professionally have to do in relation to donations," he said.

"I would not lie, I did not lie."

But Mr Portillo repeated Conservative calls for Mr Brown to resign. He told Today that that there was an "inconsistency" between what he knew and the answers which he gave at the time.

Mr Portillo added: "If this really were a government as promised by the prime minister to be purer than pure, the chancellor would say `I misled the people and because we have high standards of government I am going to go.'

"I don't think the verbal gymnastics will do. I think this will lead people to believe that this is a very cynical government that exists on spin and is now falling well short of the standards set for it by the prime minister."

Pension row

Unveiling his proposals for pensioners, the chancellor rejected calls to restore the earnings link with pensions, demanded by many Labour activists.

His proposals included boosting the basic pension for the poorest pensioners to �90 per week, possibly from next April.

David Willetts: Pensioners are 'fed up'

"Every pensioner is going to benefit from the new proposals we are putting forward, in particular those on modest incomes and those who are the poorest," he told BBC News.

"We know we have to do more and we will do more. But specific announcements have got to wait until the pre-budget announcement."

But his opponents were not impressed. David Willetts, the Conservative social security spokesman, said: "The Chancellor simply doesn't get it. Pensioners are fed up because of the paltry increase in the basic state pension."

Fuel protesters

Mr Brown also denied the government had been unresponsive to the demands of fuel protesters.

He insisted the government was listening to concerns and had already helped the hauliers and had also put extra money into farming.

Asked if he would cut fuel tax, he said: "You have got to know when you make decisions that you can afford them and I am not going to go outside the normal budget process."