Gordon Brown used a speech to the Social Market Foundation last night to dampen talk of Tony Blair standing down.

The chancellor insisted that he and the prime minister were jointly mapping out the next five years for the government.

He emphasised his close working relationship with Blair and said Labour's reform programme would go "on and on".

And he also attempted to put to rest rumours that he and Blair had disagreed over the direction of public policy.

His remarks are already being interpreted as a sign that a new pact for a smooth succession has been agreed by the two political heavyweights.