Ahead of next week's Budget, Gordon Brown and Oliver Letwin have exchanged blows over tax policy.

During Treasury questions, the chancellor said he would "take no lessons" on the issue from the Conservatives.

But the shadow chancellor warned that taxes are set to rise after the forthcoming general election.

Their comments came as the Financial Times reported that Brown will use the Budget to highlight Tory plans to cut spending.

The paper said the chancellor would warn that Opposition proposals would undermine Britain's competitiveness.

But, giving a taste of arguments to come, Letwin warned that the tax burden in other G7 countries has fallen while in Britain it has risen under Labour.

Responding, Brown said that the government had cut a range of taxes.

"I believe in our policy on taxation which has been to reduce the basic rate of income tax, to introduce a 10 pence starting rate of income tax, which has been to cut capital gains tax from 40 pence to 10 pence for long term investment, cut corporation tax from 33 pence to 30 pence, cut small business tax from 23 pence to 19 pence," he told MPs.

"That is the record we are proud to stand on, and we are proud that we have financed the health service by our decision to raise national insurance.

"And I notice it is not part of the Conservative manifesto to abolish it now. They lost the argument on the National Heath Service."

Letwin returned to the Despatch Box to tell MPs that the tax burden in the UK has risen.

A forthcoming International Monetary Fund report would warn that taxes will have to rise further, he said.

But Brown insisted that the government had been cutting a range of taxes.

"We are not going to take any lectures from the Conservative Party on taxation," he added.