Good ideas are being wrecked because of Treasury "penny-pinching" and short-term thinking, according to a Home Office minister.

Lord Rooker joked that the remarks, made before the Budget, could cost him his job as a minister.

The prime minister remains confident in all his ministers Downing Street

And on Friday Tony Blair's official spokesman refused to give a wholehearted endorsement of Mr Rooker on behalf of the prime minister.

Number 10 underlined the way Lord Rooker's boss, Home Secretary David Blunkett, had praised the Budget's extra �280m for fighting crime as "excellent news".

Lord Rooker's comments follow apparent pre-Budget tension between Chancellor Gordon Brown and Home Secretary David Blunkett.

Mr Blunkett reportedly angered the Treasury by going public over his hopes for extra cash.

'Narrow' view

With health set to grab the lion's share of the extra Budget funds, other cabinet ministers are reportedly worried about what resources they will get in July's comprehensive spending review.

Lord Rooker told the House of Lords on Tuesday: "The Treasury has wrecked every good idea I have come across in the past five years due to the narrow, short-term view it takes.

Lord Rooker joked he could lose his job

"Sometimes it takes a Mr Gradgrind approach and does not seek value for the community simply because one cannot always say at the outset what sum of money will be involved."

The minister promised that his boss, Mr Blunkett, would not allow "penny-pinching approaches" to wreck the idea of new community support officers to work alongside police.

"There will be no acquiescence in any attempt to short-change the police service," added Lord Rooker.

No ringing endorsement

At Friday's briefing for journalists, Mr Blair's spokesman was asked three times whether the prime minister retained confidence in Lord Rooker after the remarks.

The spokesman replied: "Those are Lord Rooker's words... Lord Rooker remains a minister in the government... The prime minister remains confident in all his ministers."

Ministers always wanted to get as much money as they could for their departments, he said, but pointed to Mr Blunkett's Budget praise.

The Home Office told BBC News Online: "He (Lord Rooker) is making his own personal remarks. We are not making any comments on what he has said. What he's said is what he's said."

The Treasury has always been lambasted by some politicians for guarding its coffers too tightly, although its supporters insist it is ensuring value for money.

'Excessive influence'

That power is widely believed to have increased during Mr Brown's tenure as chancellor.

Thursday saw a powerful committee of MPs accuse the Treasury of wielding "excessive influence".

The Commons Transport Select Committee criticised the department's ministers for not appearing to give evidence in its inquiry into the public-private partnership plans for the London Underground.

The Treasury ministers say the plans are being handled by the Transport Department.

But the committee argues that Transport Secretary Stephen Byers has been "little more than the messenger".

It says Mr Brown has "imposed the PPP scheme despite the opposition from a wide range of experts".