Chancellor Gordon Brown set out an upbeat picture of Britain's economic prospects as he delivered his annual Pre-Budget Report today.

As the Government prepares for an expected general election next year, Mr Brown predicted another year of strong growth, saying the economy would grow by between three and 3.5 per cent next year.

He also set out a package of measures to improve research and development - including the naming of Newcastle, York and Manchester as three "science cities" in the North.

''Britain will extend the longest period of uninterrupted growth in the industrial history of the country,'' he told the Commons.