Gordon Brown has told MPs that public spending will continue to increase until a "0% rise" in 2012-13.
Mr Brown, challenged by Tory leader David Cameron during Prime Minister's Question Time, said it would be "completely wrong to have a spending review now at this stage because we are in the midst of a recession", making it impossible to predict future performance.
Mr Cameron said the Government was avoiding a review "because they do not want to own up to the cuts they are planning".
He accused the Prime Minister of a "deceit" in claiming the Opposition proposed 10% cuts.
The Prime Minister said Tory spending plans were based on unemployment continuing to rise "because you will do absolutely nothing about it".
Mr Cameron retorted that it was Labour policies putting people out of work, adding: "There's only one person we want to put on the unemployment register and that's the Prime Minister.
Liberal Democrat leader Nick Clegg said the "bogus debate" on public spending had hit "new lows".
He accused Mr Brown and Mr Cameron of seeking to avoid telling the truth on future plans.