The Lib Dems have indicated that they believe Gordon Brown would pose a tougher rival to beat than Tony Blair.

Home affairs spokesman Simon Hughes said Labour was the true enemy - and warned that Brown would pose a "threat" to the Lib Dems.

Baroness Williams yesterday accused the government of damaging the campaign for the single currency by its on-going refusal to come out fully in support of the euro.

Her comments came as the Lib Dems signalled they would turn their pro-euro fire on the chancellor unless Labour made a move to up the ante on the single currency.