Blair and Brown 'rift' under scrutiny

Tony Blair is to make a key speech this week spelling out the benefits of joining the euro, at a time when relations between the Prime Minister and his Chancellor Gordon Brown appear to be under renewed strain.

The speech, to be delivered in Birmingham on Friday, will be more closely scrutinised than usual for any evidence of a difference between the two over policy on the single currency.

Mr Brown, who is preparing his pre-Budget report for next week, is the subject of fresh speculation that he has fallen out badly with Mr Blair. No 10 attempted to play down the weekend reports, with Mr Blair's spokesman saying: "It is a fact that they work more closely together than any of their predecessors."

But it was confirmed Mr Blair considered poaching Gus O'Donnell, one of the Chancellor's most trusted aides, to join the Downing Street staff after the last election. The attempt to take Mr O'Donnell, who is in charge of the five economic tests which are the basis for deciding whether to have a referendum on the euro, would have infuriated Mr Brown.

Former minister Frank Field yesterday warned the Chancellor that the Prime Minister was more powerful than ever. "When you've been a megastar on the international stage twice, like Tony Blair has, I don't think the Prime Minister is going to come back to play number two to Gordon Brown for that much longer," he said.