The Home secretary is reported to be drawing up emergency plans to tackle overcrowding in Britain's prisons.

Prison governors believe David Blunkett has little choice but to free prisoners early as the number of people behind bars rapidly approaches the "safe" level of 71,000.

The Guardian says the chancellor is sceptical about the cost of Blunkett's plans to overhaul the police, the prison service and the asylum system.

Gordon Brown is said to favour investment in long term preventative measures rather than providing extra cash to meet current demands.