Hospitals and churches across Britain are preparing for the possibility of war with Iraq.

The Times reports that the Ministry of Defence has held talks with the heads of England's 28 strategic health authorities to identify appropriate hospitals for dealing with the victims of a chemical or biological attack.

Meanwhile, Church of England authorities have advised bishops that churches should remain open as much as possible during any conflict.

The possibility of an imminent war is also reported to have delayed the chancellor's Budget.

Gordon Brown could hold it in the fortnight beginning March 31, according to reports.

As church and state ready for a possible war, the prime minister continued to put forward his case.

Tony Blair said he would not back military action in the Middle East if he thought it was "morally wrong".

But he faces continued opposition from Labour MPs and, according to a MORI poll for today's Financial Times, falling popularity ratings.

Leading rebel and former Cabinet minister Chris Smith told GMTV on Sunday that even more of the party's backbenchers would be prepared to vote against the government if it goes to war without a second United Nations resolution.

However the French government indicated its continuing opposition to any new resolution.

French foreign minister Dominique de Villepin told the BBC that resolution 1441 meant the international community should "work through the inspections until the point when we found ourselves in a deadlock".

Liberal Democrat leader Charles Kennedy also spoke out against war yesterday, warning of potentially devastating consequences.

"Are we really arguing at this stage, before the UN process is complete, that the best thing to do is to start slaughtering people in their thousands, perhaps hundreds of thousands, as well as losing British and American and Australian lives in the process?" he asked. "I don't think so."