There will be no more tax rises and no more spending cuts in this week's Budget,

There will be no more tax rises and no more spending cuts in this week's Budget, which will set out a package of measures to boost growth and jobs, Chancellor George Osborne said today.

But he left no doubt that he will resist Labour calls to scale back the pace of deficit reduction, saying: 'That's not going to happen.'

Mr Osborne confirmed he will raise income tax thresholds in real terms on Wednesday, amid reports that he may take all those earning under £8,000 out of the tax altogether.

And he gave a strong hint that he will postpone the 1p rise in fuel duty scheduled for April 1 in order to relieve pressure on motorists struggling with prices at the pump of £1.30 or more.

But asked on BBC1's Andrew Marr Show whether he will rein in the cuts programme, as Labour has demanded, the Chancellor replied: 'That would be a huge mistake for the country.

'We would lose economic stability, we would be back in the mess of wondering what is going to happen tomorrow to Britain's credit rating. That's not going to happen.'

Mr Osborne said that the necessary cuts and tax rises were all included in last year's emergency budget, leaving him free this year to concentrate on growth and jobs.

'Having undertaken the rescue mission last year, I don't have to come back and ask for more this year,' he said.

'So I can say in the Budget this week I am not going to be asking for more tax