Gordon Brown has told the civil service unions that their threat of strike action would not save the 104,000 jobs that he has decided to cut.

The chancellor said he was going ahead, come what may. "The civil service unions should be in absolutely no doubt. We are going ahead with these reductions even if they threaten to strike," he said.

"That would be a mistake and counter-productive. We are going ahead with the reductions; they are both necessary and are going to happen."

The savings will go to spending increases of £80 billion by 2008, with increases for defence, security, childcare, transport and housing.