The Independent reports that home secretary David Blunkett and chancellor Gordon Brown clashed last night as the Home Office called for increased investment ahead of today's Budget.

It has been predicted that while the department will receive additional funds, it will be less than Blunkett had requested.

He is quoted as saying: "I am going to see my friend [Blair]. Then I am going to see my other friend [Brown] the Money God. Who does he think he is? Oh well, I will have to see what I can get."

However, the Home Office has denied that the remarks were made.

Brown is expected to announce a five year spending plan for the NHS equivalent to £25 billion in today's prices, the centrepiece of his sixth budget.

Such an increase in investment will take spending from less than £65 billion this year to over £90 billion in the 2008 financial year, the highest in the history of the NHS.

However, Blair and other cabinet colleagues are said to be concerned that other public services could be neglected.

The Tories will today be challenged to commit to a similar spending level.

This commitment comes as the Wanless report into health spending until 2020 is published. It is expected to call on the government to "catch up" on decades of under investment.

Tories have accused Blair and Brown of seeking to limit the level of publicity surrounding the report by publishing it today.

National insurance is expected to increase to fund the extra government investment.

Local authority social services are also expected to receive a cash boost today, in a bid to reduce bed blocking by pensioners unable to move to care homes.

Spending is expected to rise by six per cent per year over the next three years, in an attempt to stabilise the care home market, where 5000 have closed in the past five years.

However, it comes as the FT reveals that care homes are lobbying local councils to charge up to £150 a week per resident.