Brown hits back at MPs over Budget

GORDON Brown took revenge on Tuesday on MPs who attacked his Budget by denying them a say in the euro debate. The Chancellor was furious after the Commons Treasury Committee said he had 'failed to make the case' for raising National Insurance. Now critics say Brown has scuppered the committee's plans to contribute to Britain's most important economic decision for half a century.

The 11-strong group was to have launched a major inquiry within a few weeks into the workings of the European Central Bank, the stability and growth pact and the 'five economic tests' on whether the country should adopt the single currency. But on Tuesday chairman and Labour MP John McFall said the probe had been postponed to the autumn 'at the earliest' to allow the committee to consult experts.

The timetable change means the MPs may not start their investigation by the time Brown is expected to unveil his own decision. Critics said it could mean the decision will be made without Parliament having any say at all.

Insiders accuse McFall of using the issue to try to get back into the Chancellor's good books, after he was one of the first Scottish MPs to support Tony Blair for the Labour leadership in 1994.

Opposition MPs emerged angry from a private meeting with the committee chairman on Tuesday when the threat of a delay was spelled out. They believe the move is the Chancellor's revenge for the humiliation they inflicted on him.

The hostile Budget report was published after four Labour MPs missed the committee's final session, leaving Opposition members in the majority. The resulting report launched a stinging attack on Brown. The committee also said there was a £7bn black hole in the Budget. After that onslaught, it appears the Chancellor has decided not to risk further embarrassment over the euro.

Lib Dems and Tories have been pressing since before the last General Election for an investigation. They are particularly keen on analysing the technical work the Treasury has already done on the implications of the euro.

Their calls sparked a two-hour row at a recent meeting, after which McFall backed down - only to appear to change his mind again. But yesterday the chairman denied the timetable change constituted a delay. McFall said: 'The committee has agreed that we will look into the five economic tests and the technical work as part of a broader inquiry into the European Central bank, the stability and growth pact.' He agreed this might mean the Chancellor could issue his decision before the committee could report.