Spending cuts are more likely to improve Britain’s fiscal position than tax rises, an internal Treasury paper has suggested.

The document, revealed after a Freedom of Information request, contains international examples of ‘fiscal consolidation’ including programmes in Sweden, Canada and Ireland.

The paper notes that "there is broad agreement in the literature that spending restraint is more likely to generate lasting fiscal consolidation and better economic performance than tax increases".

However, conclusions or recommendations for UK policy are not revealed in the document released on the Treasury website yesterday.

A large section of the paper, entitled "Emerging Themes", is blacked out, as are paragraphs outlining the "key lessons" from each of the countries studied.

One section of the document compares "ambitious reform" - cuts of more than five per cent of GDP within seven years - with "timid reform" – cuts of under five per cent in the same period.

The paper was prepared by Treasury officials ahead of Alistair Darling's December Pre-Budget Report.

The disclosure comes as the main parties continue to lock horns over the size and timing of spending cuts after the election.

Lord Mandelson today accused the Tories of being in "disarray" over economic policy as Labour called on David Cameron to make clear his plans for post-election cuts.

The business secretary said the opposition was either trying to hide proposals which would "strangle the recovery at birth" or had performed a major policy u-turn.

The Tories have previously stated they would move further and faster than Labour to tackle Britain's £178bn budget deficit in a bid to reassure international markets and stabilise the economy.

However, last week Cameron that while an incoming Tory government would make an immediate "start", there is a limit to what can be done in the first 12 months when the spending plans for the financial year are already in place.