The money - earmarked in Gordon Brown's 2003 Budget - will also be used to upgrade testing facilities for substances capable of being used in a chemical or biological terror attack.

Home Secretary David Blunkett was quick to welcome what he labelled a "boost in the fight against terrorism".

He said: "It will fund a range of counter-terrorism projects which will help protect the community, reinforcing the importance government attaches to ensuring safety and security for the public."

Strong signal

"The Budget sends out a strong message - the UK is serious about protecting our borders and doing all we can to prevent terrorist actions."

The �330m will be spent over a three year period by three department: the Home Office, the Cabinet Office and the Department of the Deputy Prime Minister.

Further details of the way the money will be allocated are due to be released at a later date but it is thought there will be cash for anti-terrorism training and equipment for the emergency services.

Mr Blunkett said: "We are already doing a great deal in this area and this will strengthen our abilities still further, building on an above-inflation budget for the police and the extra �87m funding for counter-terrorism we announced in last year's Budget."