Other European governments are unfairly discriminating against British companies and rigging the rules to help their own companies, a report claims today.

Gordon Brown will tomorrow call on Europe to reform its single market rules after a year-long review commissioned by him from Alan Wood, chief executive of Siemens, found that fair competition in European markets is not occurring.

Writing in the Times today, the chancellor says that fair competition for government contracts is being held back in many EU states and penalising enterprising and innovative companies.