The Chief Secretary to the Treasury has written to almost all Whitehall departments asking them to make savings of 10%.
The Office for Budget Responsibility say the scheme should stimulate house building "a bit, but not much".
George Osborne faces criticism that his mortgage guarantee plan might actually make houses less affordable.
Help for homeowners to pay energy bills and extra funds for the NHS to prevent a winter healthcare crisis are expected to be highlights of George Osborne's autumn statement on Thursday, according to the Guardian.
With political pressure over energy bills rising, and concern over NHS waiting times ahead of the busiest months for hospitals, the chancellor is likely to address current challenges rather than indulge in triumphalist rhetoric.
Shadow chancellor Ed Balls has predicted more "panicky" Government U-turns, as the Autumn Statement is due on Wednesday.
Writing in the Sunday Mirror, Mr Balls said: "After last year’s Budget, Chancellor George Osborne was forced into chaotic U-turns on the pasty tax, the caravan tax and the charities tax. This time the U-turns have started before he’s even made his speech.
"With four days until the Autumn Statement, we’ve already had panicky changes in government policy: on payday loans, cigarette packaging, energy subsidies and bank lending.
"We don’t need more half-measures and panicky climbdowns from the Omnishambles Chancellor".
The Government's plan to guarantee billions of pounds of new mortgages could lead to a new house price bubble, some economists are warning.
And independent analysts claim tax rises or deeper spending cuts could follow the next election as the Government struggles to slash the budget deficit.
Watch Business Editor Laura Kuenssberg's report:
Paul Johnson, director of the Institute for Fiscal Studies, said there is a risk that the Government's Help to Buy scheme, designed to make houses more affordable, could have the opposite effect.
Speaking to Economics Editor Richard Edgar, he said: "There is a risk that a lot of this will do more to push prices up rather than making things more affordable."
He added that the policy is a "distributional" one as it helps those without large deposits get on the housing ladder, but in some cases "that's a bigger risk".
An angry stay-at-home mother attacked the Deputy Prime Minister during his weekly radio phone-in on LBC 97.3, accusing him of thinking what she did was a "worthless job".
The caller, named as Laura from East Dulwich, said to Nick Clegg: "I'm just wondering why the coalition is discriminating against mothers like me who care for their children at home, with the latest announcements?"
Her scathing attack came after it was announced in the Budget that a tax-free childcare scheme worth £1,200 a child for parents earning up to £150,000 would come into effect from 2015.