Instead the Government is scaling back proposals made by former premier Tony Blair, which were expected to cost taxpayers £100m, and will buy only a small plane for trips around Britain.

The decision to abandon plans for the jets – nicknamed "Blair Force One" – was disclosed in a written statement to MPs by the Department for Transport.

Transport minister Jim Fitzpatrick said the department had worked closely with the Royal Household, No 10 and the Foreign Office to reach the decision.

He said: "I am today recommending that the needs of the users of this service can best be met through procuring a small aircraft for official travel within the UK, chartered air services for longer journeys involving small parties, and a continuation of existing arrangements with UK airlines for journeys involving large parties.

"This approach ensures better value for money for the taxpayer whilst also minimising the environmental impact of royal and ministerial air travel, producing an estimated 10 per cent saving on CO2 emissions."

The statement to MPs said there had been "substantial increases in the cost of buying and operating commercial aircraft" since the idea was first raised in 2006.

It also points out that the new Ministerial Code – introduced by Mr Brown when he entered No 10 last summer – sets out that scheduled flights should be used wherever possible.

"An increasing proportion of overseas journeys, including a number of those undertaken by the Prince of Wales and the Prime Minister, are now routinely made on scheduled flights."

The Royal Household will be responsible for procuring the small plane. Currently VIPs are ferried around in RAF aircraft or use chartered flights.

Mr Blair is believed to have endorsed the proposal for two dedicated jets – a Boeing 737 and smaller executive jet – as one of his last acts in office.

They would have been available for senior ministers and the Royals, and put the Prime Minister on more of an equal footing with the US President – who uses a series of planes known as "Air Force One".

However, Mr Brown was widely believed to have opposed the move as Chancellor, complaining at the cost of permanent lease arrangements.

Liberal Democrat transport spokesman Norman Baker welcomed the decision last night: "Blair force one was simply an expensive status symbol to be paid for out of the public purse," he said.

"That it has now been cancelled perhaps shows that the Government is starting to reel in the worst of its excesses."

Shadow transport secretary Theresa Villiers said: "We're glad this money will no longer be wasted on this grace-and-favour plane.

"However, it remains to be seen how much the Government have wasted since last year dithering over whether they wanted this plane at the expense of the country."

Mr Brown firmly endorsed predecessor Tony Blair as the man to be the European Union's first permanent president. The Prime Minister previously said simply that Mr Blair, who is yet to throw his hat into the ring, would make a good candidate if he decided to run.

But asked by a French newspaper whether he would back his former colleague if he entered the race, he said: "Yes, absolutely."

The interview with Le Monde was timed to coincide with the state visit of French President Nicolas Sarkozy – who has publicly backed Mr Blair for the job.

The president of the European Council of Ministers is a post created under the Lisbon Treaty, which is currently before Parliament for ratification.

It will replace the present system which rotates the leadership of the main decision-making body among member states with an individual elected for a two-and-a-half year term.