England finally return to winning ways... (VIDEO)

A first-half strike from Jermain Defoe was enough to give England a 1-0 victory in Port Elizabeth, setting up a scintillating clash against the Germans on Sunday in the last 16.

Manager Fabio Capello said his team could now could "go forward without fear" after England turned in a far more accomplished performance than had previously been seen in the finals.

The win, however, was not enough for England to top the group, with Capello's men having to settle for second spot.

Bookies have slashed odds on England winning the tournament, with Betfair shortening its price from 13-1 to 10-1.

Streets and shopping centres were largely deserted during the match and the result sparked celebrations around the country.

Schools and businesses had made special arrangements so people could watch the game while millions more gathered in pubs. A handful of arrests were made in Scarborough after the game for public order offences.

Ahead of kick-off, David Cameron offered his support during Prime Minister's Questions – to cheers from MPs.

In Port Elizabeth, the Nelson Mandela Bay Stadium witnessed joyous scenes as England fans –many dressed as knights, musketeers and big game hunters – won the battle to make themselves heard above the vuvuzelas.

An emotional Capello was full of praise for his players. "We played together, fight together and I am really, really happy for the result," he said. "This was the team that I know."