Amid the turmoil of the accounting scandals and stock markets, Gordon Brown is under pressure to keep a firm grip on the tiller. And the Spending Review will throw up the odd extra challenge. His options are considered by Carl Emmerson and Christine Frayne.

Later this month Chancellor Gordon Brown will announce the outcome of his third Spending Review. This will reconsider the 2003/04 spending limits for departments and set those for 2004/05 and 2005/06. Politically this announcement is of great importance since it will determine the resources available to frontline services right up to the next general election.