Four government departments have agreed spending cuts, George Osborne has confirmed.
The chancellor said the transport, local government and environment departments - as well as the Treasury - had all reached a deal to cut their spending.
In a major speech today, Mr Osborne will warn ministers that "the deficit could bring our country down" unless they agree to slash their budgets.
George Osborne has dismissed suggestions of a rift between himself and Work and Pensions Secretary Iain Duncan Smith over spending cuts.
Reports over the weekend suggested Duncan Smith was considering his position over Mr Osborne's demands to take money from the welfare budget to pay for his climbdown on tax credits.
Asked if he and the Work and Pensions Secretary were at odds, Mr Osborne told reporters: "Compared to the other two spending reviews I have done, this one is going more smoothly and we are making further and faster progress.
"Things are going very much as we would hope them to go."
The number of agents in the intelligence services investigating terror plots is to "substantially" increase, George Osborne has announced.
George Osborne is to announce provisional deals with four departments over plans to cut spending.