Reid fights for more cash for Home Office

John Reid is preparing for battle with Gordon Brown over a squeeze on the Home Office budget which he inherited from his predecessor as Home Secretary, Charles Clarke.

Mr Reid fears that a freeze on above-inflation increases imposed by the Chancellor could prevent him turning around his "dysfunctional" department.

Action on antisocial behaviour is one of the Government's priorities, but the Home Office is struggling with its budget. Mr Reid is prepared to appeal over the head of Mr Brown to the Cabinet if he believes he needs more money to deliver the Government's promises on terrorism and security, illegal immigration, expanding community policing and tougher prison sentences for serious offenders.

Mr Reid has ordered a review of the figures agreed between Mr Clarke, who was sacked over the failure to deport foreign prisoners, and the Chancellor for the next financial period, 2008-2011, to see if more savings can be found.