ED Balls insisted Labour had not decided to fight the 2015 General Election on a commitment to outspend the Conservatives.

However, the Shadow Chancellor stopped short of ruling out such a pledge in the future, stressing it would be irresponsible to set out plans so far in advance.

He was responding to reports that the Opposition at Westminster was ready to "bet the house" in two years' time by promising higher public spending and that it would reject the more cautious approach of matching the Coaliton's plans; in 1997, Tony Blair's New Labour government adhered to the previous Tory administration's spending plans.

It was suggested that while some senior party figures felt emulating Mr Blair's landmark move would help convince voters of Labour's economic credibility, a majority of the Shadow Cabinet believed taking longer to reduce the budget deficit would enable a Miliband government to finance investment such as housebuilding.

Noting the suggestion of outspending the Tories was contained in a Fabian Society report out next week, Mr Balls said: "Is it the policy of Ed Miliband and me, Ed Balls, that we will decide now to bet the house with a pledge to outspend the Tories? No, that is not our position. It would be totally irresponsible."

He pointed out how George Osborne in June would be setting out the Lib-Con Government's spending plan for 2015/16, the first year of the next government, when £11.5 billion in more cuts will have to be found.

"We do not know how bad the economy is going to be then. We don't know where we will be in two years' time," he added.

Despite Mr Balls's denials, Grant Shapps, the Conservative chairman, insisted they "confirmed they will spend more" and showed Labour would "take Britain back to the brink of bankruptcy".