American central bank chief Alan Greenspan provided important advice to New Labour on central bank independence while the party was in opposition, Gordon Brown has revealed.

The chancellor was making his comments as he joined Greenspan at the opening of a refurbished Treasury building in Whitehall.

Greenspan unveiled a plaque marking the occasion before an audience of invited guests, including Commonwealth finance ministers.

Gordon Brown praised Greenspan as a "towering figure in the international financial community" - although commentators have recently begun to question his record given America's recent economic difficulties.

The chancellor told his audience that Greenspan had advised him on how the Bank of England could be made independent.

"I am personally grateful to you for your advice between 1994 and 1997 when you regularly met me and Ed Balls - now the chief economic adviser to the Treasury - and we discussed privately with you how central bank independence would work for Britain," Brown said.

The news that the American Federal reserve chairman had prior knowledge of Labour's intentions to grant the Bank of England independence may come as a surprise to other senior Labour figures.

When Brown announced the decision the day after Labour's June 1997 election victory, it was not only the City and media commentators who were caught by surprise.

It is thought that the other members of the then Cabinet were not aware of what was planned, with the policy remaining a closely guarded secret between Brown, Tony Blair and a handful of senior advisers.