Chancellor George Osborne is to unveil £20bn more in cuts in the Autumn spending review, according to media reports.
The Daily Mirror reports that Mr Osborne will today admit that, despite being the Chancellor for more than five years, he has failed to make significant reductions to the budget deficit.
Together with the Treasury Minister Greg Hands, Mr Osborne will claim that the government is “still borrowing £1 for every £10 we spend”, with the national debt “at its highest for 50 years”.
They will argue: “If we do not deal with this debt, we run risks with our economic security.”
The revelation comes after Labour was branded “disgraceful” over their refusal to oppose £12bn in welfare cuts on Monday evening.
MPs voted to support the government’s ‘Welfare Reform and Work Bill’ by 308 votes to 124, with the majority of Labour MPs heeding calls to abstain.
However, 48 Labour MPs rebelled against party whips to oppose the measures, which could lead to hundreds of thousands of children being pushed into poverty.
Measures include a lowering of the benefit cap, limits to child tax credits and cuts to the Work Related Activity Group of Employment and Support Allowance – bringing the amount a claimant in the ESA WRAG can receive in-line with Jobseekers Allowance.
Government figures published shortly before the debate in the House of Commons, reveal that more than 330,000 children will be affected by a reduction in the benefit cap. The Tories aim to reduce the £26,000 a year cap to £23,000 in London and £20,000 elsewhere.
The impact assessment also shows that the Welfare Reform and Work Bill will slash the maximum amount an average household can receive in benefits by £63 a week, or £3,276 a year.
Single parents and children will be the worst affected by the lowering of the benefit cap, the Daily Mirror reports.
According to the newspaper, the majority of government departments will be ordered to earmark public land which can be sold for housing.
Last edited at 14:38 on 21 July 2015. Correction: These are reductions in departmental spending and not necessarily welfare cuts. Daily Mirror has also corrected their article.