Osborne also announced the creation of a new Office for Budget Responsibility, headed by fiscal and macroeconomic expert Sir Alan Budd, to assess the state of the nation's finances.
Speaking to journalists at the Treasury's offices in London, Mr Osborne said he wanted an emergency Budget that would "show that Britain could live within its means and provide the solid foundation for a private sector recovery."
He added that the Chief Secretary, David Laws, would meet Cabinet colleagues this week to agree £6 billion of cuts in this year's spending.
