Gordon Brown will use Wednesday's Budget to tackle the challenge posed by other emerging market economies such as China, by commissioning a review into how Britain's creative industries can help its struggling manufacturers.

The chancellor will ask George Cox, chairman of the Design Council, to examine how the UK's expertise in advertising, software, the media and universities can be exploited to boost industrial competitiveness. Mr Cox, former head of the Institute of Directors, will report in time for this year's pre-Budget report.