Shadow Chancellor Ed Balls has outlined as six point budget plan, saying that the stakes are high for next week's announcement because "working people are on average £1,600 a year worse off".

Shadow chancellor Ed Balls has ruled out a reversal of the rise in VAT in an interview on the BBC's Andrew Marr Show, adding that he is "daunted" by the size of the deficit.

In 2012, Balls called for a temporary cut in VAT in an effort to boost the economy, but says the public finances would not allow such a measure after the next election.