LONDON -(Dow Jones)- The U.K. government won't offer any spending giveaways in next week's budget ahead of national elections, U.K. Chancellor of the Exchequer Alistair Darling said Sunday.

Speaking to BBC television ahead of a March 24 budget that will be closely watched by markets for further detail on how U.K. policymakers plan to reduce the country's bloated budget deficit, Darling said; "There's no question of giveaways... I don't think the mood of the times is for election giveaways."

Data on Thursday showed that U.K. public sector net borrowing was less than expected in February, prompting speculation that next week's budget may contain spending handouts ahead of elections that must be held before June 3.

But the Chancellor said that the economy was "not out of the woods yet," adding that "people are not daft - they know perfectly well that we've got to get our borrowing down."

Prime Minister Gordon Brown has brushed aside calls from business organizations, credit rating agencies and the Bank of England to use the upcoming budget to accelerate the government's debt reduction plan, insisting the current program -- to halve the deficit in four years -- is the right one.

The U.K. government has faced a range of warnings from policy makers and rating agencies that its four-year deficit reduction plan could make the country's AAA credit rating vulnerable.

The Chancellor also poured cold water on opposition Conservative party plans to impose a bank levy irrespective of an international deal, stressing that such a scheme "could only work if there is international agreement."

The leader of the U.K.'s opposition Conservative Party on Saturday pledged to introduce a levy on banks if it wins a general election that must be held by June 3.

Previously, the Conservative Party had said it would introduce a levy if there was international agreement to do so. But in a speech laying out his party's plans to take on "vested interests," David Cameron said the levy would be imposed even if there is no international accord.

"I can announce today that a Conservative government will introduce a new bank levy to pay back taxpayers for the support they gave and to protect them in the future," Cameron said Saturday. "It won't be popular in every part of the City. But I believe it's fair and it's necessary."

The governing Labour Party supports the introduction of a levy if there is international agreement. Speaking Friday, Brown said the Group of 20 leading economies must quickly develop a coordinated approach to placing a levy on banks as part of its effort to rebuild the global economy.

G20 leaders will meet in Canada in June and study recommendations from the International Monetary Fund on a new charge on banks that would help ensure financial stability and raise funds for future bailouts.

Brown had favored a so-called "Tobin" tax on financial transactions, but now favors a direct levy on banks, although it isn't clear whether that would be applied to capital, profits or pay.

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