Labour is spoiling for a scrap with Sussex MP Howard Flight over claims he would slash spending on schools and hospitals by 20 per cent.

The party's Treasury Chief Secretary Paul Boateng has issued a statement saying he is "looking forward" to taking on the Arundel and South Downs MP over the dispatch box next week.

A debate on the economy has been called for Wednesday afternoon and Mr Boateng said it would be the ideal time to embarrass Mr Flight.

Mr Flight, the Tory party's treasury spokesman, has already been forced to defend remarks that he would reduce Government spending by a fifth.

He said the cuts would be restricted to specific areas - most notably the cost of running Parliament itself.

But Labour has seized on the comments and repeatedly goaded Tories with the claim they would slash budgets for schools, hospitals and transport.

Mr Boateng today said: "Howard Flight will have to tell the House of Commons how many nurses, teachers and police officers the Tories plan to cut."

Mr Flight said he had already made his position clear and Labour was guilty of "deliberately distorting" his words.

He said he had merely been pointing out cash was being wasted throughout Government and this could be reduced.

Tory leader Iain Duncan Smith has dismissed the claim he would impose across-the-board cuts of 20 per cent as "total and utter fabricated lie".