Osborne promises Tories would identify spending cuts by autumn

The Conservatives would spend the summer identifying the "difficult decisions" necessary to bring down the country's massive deficit.

Those measures would be based on the findings of an independent audit of public finances, and forecasts for growth, carried out soon after polling day.

An emergency budget would then be held within 50 days of the election, setting out the "overall fiscal path and spending totals" for the years ahead.

That would include measures to reduce the public sector pensions bill and the cost of Whitehall bureaucracy, as well as increasing the pension age.

But it would also feature support for enterprise to "encourage new jobs and show that Britain is open for business", Mr Osborne said as he delivered the annual Mais Lecture in the City of London last night.

"We will take targeted steps to reduce some budgets in-year... in order to build credibility and make a start on reducing the deficit."

The Tories would then immediately set to work on the departmental spending review that Mr Osborne accused the Government of shying away from.

But Labour accused the Shadow Chancellor of failing to offer "any plan" for dealing with the deficit.

Chief Secretary to the Treasury Liam Byrne said: "George Osborne had the chance to come clean about his spending plans – and he bottled it.

"The only thing he made clear was that he's still ready to put economic recovery at risk."