In an interview with The Scotsman ahead of a G20 meeting in St Andrews today, Mr Darling suggested that, while he intended to increase public spending by £30bn next year, an extra fiscal stimulus this autumn on top of that was unlikely.

Instead, he said he needed to strike a balance between supporting the flat-lining UK economy with continued government cash and getting the country's huge fiscal deficit back under control.

The Chancellor's move comes after reports earlier this week which suggested that Gordon Brown wanted to unveil a further multi-billion-pound spending spree to support the faltering recovery.

Mr Darling is preparing to unveil his pre-budget report in the next few weeks, when he will set out the government's fresh spending plans. Last year, the Chancellor unveiled a £16bn fiscal stimulus before Christmas. This included the cut in VAT, which ends in the new year.

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