Gordon Brown was on Tuesday meeting senior Cabinet ministers for last minute lobbying ahead of next week's Budget.

The chancellor had a busy schedule of meetings as ministers made last-minute bids on behalf of their departments.

The Treasury confirmed that his diary was so packed out that he has been forced to cancel his trip to Brussels for the regular meeting of finance ministers.

Spending is tight and Brown will be looking for pledges of cost-cutting in return for a deals to fund what he may consider to be pet projects.

One hint has already been given that Brown is looking to close loopholes and could cut the special tax status that saves British business an estimated £1 billion.

Next week's Budget and the spending review later this year are crucial for Brown - and the government.

The review will set the foundations for Labours next general election manifesto, according to a leading think tank.

In a report published on Monday, the Institute for Public Policy Research said it was the chancellor's review, rather than the forthcoming Budget, which will set the "overall direction of policy in the next parliament".

The spending review will set out the government's spending plans to 2007/08.

"Tough choices will have to be faced regardless of how the economy or the public finances are expected to evolve over the next few years," said IPPR senior economist Peter Robinson.