THE Chief Secretary to the Treasury yesterday warned deep austerity cuts would continue past the next General Election, promising that the Coalition would be "unflinching" in its efforts to reduce the country's debt.

Danny Alexander told the Scottish Liberal Democrat conference in Dundee that after Wednesday's Budget he would conduct the Spending Review of Government funding for 2015-16.

Despite the General Election due that year, he said there would be no easing up on austerity, as the Government tried to deliver a stronger economy and a fairer society.

He said: "We will continue to be unflinching in our pursuit of deficit reduction. Between now and the end of June we will be working out where the savings can best be made.

"We will have to find significant further cuts and make sure that every penny of taxpayers' money is spent effectively."

To offset the downbeat message, the Highlands MP also trailed a Budget pledge to end a tax dodge involving Scottish hospital and teaching staff which costs the Exchequer £100 million a year.

The scheme involves employers which hire staff through firms based in the Channel Islands and other tax havens. Around 100,000 staff across the UK are paid through such offshore deals, which reduce employers' National Insurance.

He said he expected to raise around £7.5 billion from offshore accounts in this Parliament.

"I can announce today that in the Budget we will introduce new powers to clamp down on companies who avoid paying tax by putting their payrolls in tax havens.

"Our message is clear: British firms employing workers in Britain must pay British taxes."