Euro 'sparks pre-Budget row'

The Treasury is denying reports that Tony Blair and Gordon Brown have come to blows over whether tomorrow’s Budget will include an announcement about Britain’s entry into the euro.

The Chancellor is understood to have been denied his wish to announce Britain’s decision during his Budget speech tomorrow. Tony Blair is believed to have postponed the announcement until later in the year.

The Government is due to announce its decision by June. According to some experts, the bid for an early announcement suggests that Britain will not yet be joining the scheme.

The news comes as analysts suggest that the Budget may be shorter than normal, because of the war in Iraq. They warn that the Chancellor may use the war as a reason for delaying unpopular announcements, using the pre-Budget in November to introduce new legislation.