The UK denies Iraqi claims of bombing deaths

The prime minister and Foreign Secretary Jack Straw are to hold talks with Russian Foreign Minister Igor Ivanov in Downing Street.

They will try to persuade Russia to abstain when the new resolution proposed by the UK, US and Spain goes before the United Nations Security Council.

Chancellor Gordon Brown indicated on Tuesday morning that he is prepared to set aside more money for a possible war in Iraq and the fight against international terrorism.

"Our armed forces do an outstanding job for Britain and today I make clear our gratitude for the work they do and my resolve to ensure our armed forces are properly equipped for whatever lies ahead," Mr Brown told business leaders in London.

"The international community must not stand by whilst a regime that proliferates weapons of mass destruction defies more than a decade's international agreements."

Mr Blair's attendance at Mr Straw's meeting with his Russian counterpart is a sign of the importance being attached to the discussions.

Click here to put your questions to Russian Foreign Minister Igor Ivanov

Budget speculation

A Russian abstention in the vote would put more pressure on France as it decided whether to be the only permanent security council member to veto the resolution.

There is continuing speculation that Mr Brown may postpone his Budget until next month, because of the uncertainty over the Iraq crisis.

Downing Street will only say a date for the budget will be announced in due course.

In his last budget, Mr Brown announced he was setting aside an extra �1bn to meet the costs of a new Gulf war.

Last month he promised an additional �750m, and on Tuesday he will signal that he is ready to make even more funds available.

Although he insisted that the government would continue to prioritise domestic concerns such as social and economic deprivation.

The extra money is unlikely to go down well with those many Labour MPs apposed to military action.

If the leadership is not prepared to listen to the people of Britain, then it will be swept aside John McDonnell Labour MP Gulf states say Saddam should go - Click here

Meanwhile, critics of Mr Blair's Iraq policy are unveiling their plans for a national conference for Labour members as they try to "reclaim" the party as an anti-war movement.

They want former Labour members to return to the fold through membership renewal forms stressing their anti-war credentials.

MP John McDonnell said: "It is now time for party members to take back control of our party from the New Labour clique that have hijacked it.

"If the leadership are not prepared to listen to the people of Britain in their clear opposition to this war, then the leadership will be swept aside."

On Monday, Defence Secretary Geoff Hoon denied claims war had been started by the "back door" because strikes in the Iraqi no-fly zones had been intensified.

Anti-war Labour MPs suggested war was being started by "escalation not declaration" after senior Pentagon officials said no-fly zone patrols had become more aggressive.

Conservative shadow defence spokesman Bernard Jenkin challenged ministers to be "honest and open" about the change.

'Suspicions'

Mr Hoon insisted there had been no "substantial change" in the way the no-fly zones were patrolled.

Liberal Democrat defence spokesman Paul Keetch said Mr Hoon's denial of a change in patrols - despite the Pentagon briefings - raised suspicions.

Later, the Ministry of Defence disputed Iraqi claims that six civilians were killed and 15 injured in an Allied bombing raid on the city of Basra on Sunday night.

Officials said a "battle damage assessment" of the no-fly zone attack showed there was no evidence anybody was killed or injured.

The allied planes targeted air defence targets in response to anti-aircraft fire from the ground, said the MoD, pointing to similar previous "unreliable" Iraqi claims.