The chancellor has warned that there will be no "blank cheques" in next month's budget.

Brown said that health is the government's number one priority and warned other departments, including the Home Office, that they may lose out as a result.

"My role as chancellor is to ensure not just that our public services are properly funded, but that funds are raised in a fair and efficient way which ensures value for money," he said.

"We have not come this far to put our hard-won economic stability and fiscal discipline at risk - and with low inflation and low unemployment again today - we will not compromise on our economic stability. The something for nothing days are over in our public services and there can be no blank cheques.

"Our ambition for the budget and spending review is to put the NHS on a sound long-term financial footing. And this must be based on tough choices between and within departments, matching resources with reform."

He said that alternatives to direct NHS funding through taxation, such as social insurance or a system of charges, are flawed and would hit the worst-off.

"Insurance policies that, by definition, rely for their viability on ifs, buts and small print can cover only some of the people some of the time," he said. "In a world of expensive treatments and even more expensive drugs, charging is simply making the sick pay more for being sick.

"So more than ever families need a system of funding that insures everyone as comprehensively as possible against the risks of huge medical bills."

His comments are a further sign that the government is preparing to raise tax to fund investment in the health service.

Bill Morris, the general secretary of the Transport and General Workers Union, welcomed Brown's remarks, but warned that he should not be afraid to raise income tax to fund the NHS.

"We welcome the chancellor's commitment to continuous improvement in the National Health Service. Nevertheless, it is clear that if we want rising standards in the NHS they must be matched by levels of taxation," he said.

A survey by the union found that the 87 per cent of the public would be prepared to pay more in taxes to fund improvements in the NHS.

The chancellor's speech is being seen as a warning to David Blunkett that cash will only be forthcoming if it is used to good effect in combating crime.

The home secretary has been accused of attempting to "bounce" the chancellor into delivering additional spending to combat crime and overhaul the criminal justice system.