Brown to fight EC on spending

Gordon Brown is poised for a bruising clash with Brussels over attempts to force the Government to cut its spending plans by ? 10billion.

Britain is under fire from the European Commission because of Mr Brown's plans, which include pumping billions extra into health and education.

A source close to the Chancellor said today: "Quite frankly, we are not going to cut spending plans by £10 billion. We have a mandate to improve public services."

The row centres on the stability pact which rules that all EU states must keep their budgets close to balance or in surplus. Even tighter rules apply for those countries in the euro-zone which can be fined if they break the pact.