A home office minister who branded Gordon Brown a "penny pinching wrecker" has publicly apologised.

Lord Rooker had attacked the Treasury's "Gradgrind" approach during a speech in the House of Lords - following bitter cabinet struggles over cash.

Speaking on Friday evening, home secretary David Blunkett said: "I have spoken personally to Lord Rooker who has assured me of his absolute commitment to the overall policies and priorities of the government.

"Following our conversation he has written to the chancellor expressing regard and offering his apologies.

"I am satisfied that this now closes the issue."

Earlier on Friday, Downing Street refused to give its backing to the minister at the centre of a row about the "penny pinching" Treasury.

Number 10 said the Home Office was satisfied with its spending allocation but refused to say whether Lord Rooker continued to have the support of the prime minister.

But there was an angry reaction to comments from the peer, who said that "penny pinchers" at the Treasury had "virtually wrecked every good idea" put to it.

Refusing to back the minister, Number 10 said: "Those are the words of Lord Rooker and we'll leave it at that."

"Obviously the departments want to get as much money as they can," added the official spokesman.

"The prime minister believes that the Budget was a remarkable Budget. The home secretary has said the £280 million for crime was excellent news for his department."

Pressed further the spokesman refused to say whether Rooker would be axed. "Lord Rooker remains a member of the government," he said. "The prime minister remains confident in all his ministers."

In his outburst, the peer singled out Brown's department for strong criticism.

"In my experience as a minister, the Treasury has virtually wrecked every good idea I have come across in the past five years due to the narrow, short-term view it takes," he said.

"Sometimes it takes a Mr Gradgrind approach and does not seek value for the community simply because one cannot say at the outset what sum of money will be involved in a measure, although one knows that ultimately it will result in a saving and better quality of life for people."

Outspoken

Lord Rooker, a former Birmingham MP who was promoted to the Lords after the general election, is no stranger to making controversial statements.

In an interview with ePolitix.com, the peer revealed that his department was considering making it compulsory for immigrants to learn English.

David Blunkett later announced the decision publicly once the initial debate over his comments had died down.

Over the last few months Rooker has been seen as the unofficial lightning rod for the home secretary, saying things his boss cannot.

The relationship between the Treasury and the Home Office is said to have been stretched to the limit over recent weeks, as relations between the two potential leadership rivals deteriorate.

Blunkett was forced to issue a denial rejecting claims that he had referred to Gordon Brown as the "Money God".

Many in Westminster see Lord Rooker's remarks as evidence that the home secretary feels hard done-by.

In an interview with the FT last weekend Blunkett admitted that he and Brown "don't talk".