The mutual gratification between the chancellor and the prime minister continued on Tuesday, with Tony Blair paying a "warm tribute" to Gordon Brown.

Addressing the cabinet prior to Brown's pre-budget report, Blair launched a fresh charm offensive with the man who is said to be pressing him to stand aside.

Speaking as the cabinet was briefed about the content of the report, the prime minister's spokesman said Blair had warm words for his chancellor.

Mirroring the words of Blair, his spokesman said. "The management of the economy, and the sensible management of the economy, is fundamental to everything that the government wants to do and wants to achieve in terms of rising living standards and getting the extra investment into our public services.

"It's on a day like today we can see how fortunate we are to have such a superb chancellor and the very strong, close relationship the prime minister has with the chancellor is one of the great strengths of this government."

Despite claims about high level disagreements over the expansion of the tax credits system, Number 10 said Blair and Brown had "worked very closely" on the report.

The chancellor will get to his feet at around 3.30pm and is expected to speak for around 35-40 minutes.