After yet more reports about their deteriorating relationship, the prime minister directly praised the chancellor's stewardship of the economy in the House of Commons yesterday.

Speaking during prime minister's questions, Tony Blair said: "As a result of the chancellor's management of the economy we have the lowest inflation, lowest interest rates that we've had for decades. We've got the highest employment levels this country has ever had. We've got the lowest unemployment of any major country."

The prime minister's official spokesman told journalists that "the idea that Gordon Brown has been demanding that Tony Blair move over is simply untrue".