Today's newspapers are predicting a direct challenge to the Conservatives in the chancellor's comprehensive spending review, with increased spending in areas where shadow chancellor Oliver Letwin has pledged a freeze or cuts.

Measures are expected to include a 50 per cent increase in the UK social housing programme, and a 2.5 per cent annual real terms increase in the Home Office budget over the next three years.

Defence spending is also expected to rise by 1.2 per cent a year.

However, Gordon Brown is expected to announce that 40,000 central government jobs will go - in addition to the 40,000 job cuts announced in the last Budget.

He may also confirm details of which 20,000 civil service jobs will move out of the south east.