Cannabis will be upgraded to class 'B' status under proposals unveiled by the home secretary.

Speaking in the Commons Jacqui Smith rejected the recommendations of a review that favoured retaining the lower status given to the drug by Tony Blair's government.

Smith defended her decision to reject the reviews findings by saying that "58 per cent of the public favour upgrading cannabis to class 'C'."

And she said that the stronger form known as skunk - which now makes up 80 per cent of cannabis used - was a "real threat" to health and that the council had accepted that.

Smith told MPs: "I have decided to reclassify cannabis to a class 'B' drug.

"There is a compelling case for us to act now," she added.

Speaking earlier at prime minister's questions, Gordon Brown said: "It is generally agreed that the quantity and also the type of cannabis been sold on the streets of our country makes it necessary that we look at this matter again.

"I believe that the recommendations that the home secretary will put forward will not only be in line with what the public wants to see but also what the police want to see.

"And I believe the House will also be pleased with the new measures she will announce will be welcomed across the country."

Responding to Smith's statement, shadow home secretary David Davis welcomed "this long-awaited U-turn."

However Davis said the government had "wasted time" by "setting up and then ignoring" the review it established a year ago.