Brown is the PM in waiting

Tony Blair today declared that Gordon Brown will remain as Chancellor - effectively making his rival a Premier-in-waiting.

He said it would be "daft" and "pretty foolish" to move the man he hailed as the most successful Chancellor in a century.

Mr Blair's comments, as the pair staged a show of unity at a press conference, immediately triggered speculation of a new deal between them.

It came hours ahead of a summit of Cabinet ministers and party grandees to agree the manifesto which was drafted by Mr Blair's closest allies and which had caused tensions with Mr Brown's supporters.

Stressing the Chancellor's record in delivering record low inflation and interest rates, Mr Blair declared: "So without breaching any of the protocols about these things, it would be pretty foolish to put that at risk."

The words, which were carefully measured, were the closest Mr Blair has ever come to confirming that Mr Brown will stay in charge of his Treasury empire after the election.

In the past Mr Blair has refused to comment on the issue even though his silence fuelled a whispering campaign that Mr Brown would be ordered to move to be Foreign Secretary or sacked if he refused.

The surprise endorsement can only increase Mr Brown's rising stature in the Cabinet and cement his position as the clear favourite to become Prime Minister when Mr Blair retires, probably in two years. It also effectively derailed Labour's first full day of electioneering.

The press conference meant to demolish Tory economic plans was dominated by questions about the relationship between the Prime Minister and his Chancellor.

A tetchy Mr Blair fought to control his irritation when one reporter asked if he had effectively abandoned future public service reforms, given the Chancellor's record of opposing "New Labour" ideas such as foundation hospitals. Mr Brown beamed with pleasure, however when his job was declared safe. And he returned the compliment by saying Mr Blair was "trusted and respected in the world".

Mr Blair gave his strongest hint yet that no new taxes were planned for the next five years. "The tax we have now is sufficient to pay for the forward plans," he said.

The Prime Minister's comments about the Chancellor today marked a clear change in his public position. Relations between the pair hit their lowest point in February amid anger over a biogra-