Gordon Brown received a double dollop of good news ahead of his Budget as new data showed falling unemployment and revealed a £1 billion underspend in last year's public finances.

Employment data showed that the number of people out of work and claiming benefit fell by 6000 in March.

The fall takes the number of people out of work to 939,600, according to the data.

Nick Brown, the minister for work, said the unemployment figures showed that the UK had weathered the downturn following September 11.

"The UK labour market remains strong with the number claiming unemployment benefit at the lowest for over 25 years," he said.

Meanwhile public finance figures showed that as a result of a spending shortfall, the chancellor will effectively have around £1 billion extra over the coming year.