The chancellor Gordon Brown has boasted that the UK economy has enjoyed the longest period of sustained growth since the industrial revolution.

Brown hailed Britain's booming job market as one of his biggest achievements – but warned of massive job cuts in the public sector.

A total of 40,000 posts are set to go across several departments, although Brown pledged to channel cash into frontline services.

Claimant count unemployment was now at 2.9% on Wednesday's new figures - the lowest since 1993.

The treasury has put off a review of whether Britain should join the Euro until next year's budget.

The chancellor said: "The purpose of this Budget is to lock in for Great Britain the economic stability that can and will endure."