Downing Street was desperately attempting to end damaging hostilities between supporters of the Prime Minister, Mr Blair, and the Chancellor of the Exchequer, Mr Gordon Brown, last night, after one senior source was quoted as saying: "Mr Brown is in a very strong political position now, but that may not last forever. No one is indispensable."
The prime minister's official spokesman flatly denied reports that Mr Blair had reprimanded Mr Brown over a newly published biography at last week's cabinet meeting. And as the proxy row raged between "friends" on both sides, he said that Mr Blair was "completely dismissive" of a Sunday newspaper report that insiders at No 10 regarded Mr Brown as "psychologically flawed".
There is growing concern about the damage being caused to the government by the reports of an unhealed rift between the neighbours at Nos 10 and 11, re-ignited by the publication last week of a biography of Mr Brown.
Although Mr Brown denies the claim that he authorised the biography, it sympathetically fleshes out the well-known pact between the two men not to stand against each other for the leadership in a way unflattering to both Mr Blair and his ally, Mr Peter Mandelson. It also makes it clear that Mr Brown has not given up his ambition to be prime minister.
Mr Brown admits he gave the book's author, the political journalist Paul Routledge, interviews, and that his two brothers as well as close members of his team, including his press spokesman, Mr Charlie Whelan, also helped.
Last night, Mr Whelan acknowledged that the way the book had been portrayed "has clearly been a problem." But, the press spokesman went on: "Tony and Gordon are very close friends and everyone knows it. None of these stories are true."
The chief whip, Mr Nick Brown, has also come under fire for co-operating with the biography. He is a close ally of the chancellor and would have run his leadership campaign if there had been one.
It is already clear that some cabinet ministers are highly sceptical of the chancellor's intentions, suspicious that his main objective is to make expenditure cuts.
A memo from the Education Secretary, Mr David Blunkett, to Mr Brown - leaked to the Guardian last month - which warned the chancellor over cutting disability benefits gave an indication of the hostility to aspects of change.
Downing Street sources last night also were playing down one welfare proposal from the Social Security Secretary, Ms Harriet Harman, who is one of Mr Brown's closest allies.
Last week, she proposed an "affluence test" for some benefits which go automatically even to the wealthiest in society. Downing Street indicated it was only one of many ideas and, a spokesman said, the government was still at the stage of arguing the case for reform.
Phil Murphy adds:
Mr Michael Heseltine has fired another shot across the bows of the Tory leader, Mr William Hague, by signalling his willingness to join a cross-party group on Europe.
The former Tory minister has said he is prepared to sit on a committee including the Liberal Democrat leader, Mr Paddy Ashdown, and Labour ministers.
The initiative emerged from No 10 Downing Street and looks like representing the broadest crossparty grouping since 1975. Then, leading figures of all parties joined forces to win a "yes" vote in the referendum on continued Common Market membership.