Chancellor George Osborne refused to say whether he would implement policies to tackle inequality, such as raising taxes on the wealthy, in the next Budget.
In an interview with Business Editor Joel Hills, he admitted that growth had not been entirely balanced, but insisted the gap between rich and poor was getting narrower:
Mr Osborne also said Britain needed a "clear economic plan" due to uncertainties on the international stage.
He mentioned the ongoing issues in the Eurozone and Greece, downgrading of Russian bonds and the dropping price of oil as examples.
The International Monetary Fund has predicted that the UK economy will grow by 2.7% this year, but lowered its forecast for global growth.Read the full story ›
Britain could experience negative inflation over the coming months without any significant risk to the economy, the Chancellor is expected to say.
In a speech to the Royal Economic Society tomorrow, George Osborne will say the slump in the headline rate to just 0.5% is due to external factors - and that the benefits for consumers should be celebrated.
"Of course we will always remain vigilant to ensure that inflation is low for the right reasons," Osborne's speech reads.
"Rising real incomes, a recovery spreading to all parts of our economy, and family budgets that can stretch that little bit further - let's celebrate these effects of low inflation, not fear them."
George Osborne and his senior Cabinet colleagues laughed as they were asked if they could each say why they might make a good leader of the Conservative Party.
Osborne, William Hague, Theresa May, Nicky Morgan and Sajid Javid were addressing journalists on the cost of Labour's policies when it was suggested the event looked like a leadership hustings.
"We're not going to do that," the Chancellor said after the laughing subsided.
"This is a team united behind David Cameron, a strong Prime Minister who lead our country in the coming years."
George Osborne has denied the party's cost analysis of Labour's policies is "a load of nonsense" when questioned by ITV News Political Editor Tom Bradby.
"No, we've been very clear that the commitments that we use are ones that are either in Labour policy documents or in party conference speeches," the Chancellor said.
"We've done the thorough homework here," he added.
George Osborne has said the Conservatives' economic plan "is working" as he launched an attack on Labour's "unfunded" spending plans.
"Don't put our recovery at risk at a time when there are so many warning lights flashing in the global economy," the Chancellor urged.
George Osborne will lead senior Conservatives in an attack on Labour's General Election promises, accusing the party of pledging £20.7 billion in unfunded spending commitments.
The Chancellor will use Treasury costings to claim Ed Miliband's plans for his first year in government do not add up at an event in London later today.
Osborne will be joined by William Hague, Theresa May, Nicky Morgan and Sajid Javid.
Labour, however, dismissed the claims, with Chris Leslie, shadow chief secretary to the Treasury, saying: "It is David Cameron and GeorgeOsborne who have made over £7 billion of unfunded tax promises. These could only be paid for by another Tory VAT rise, even deeper cuts to public services or both."
Deeper welfare cuts are "a price that works" to restore the UK economy and create more jobs, George Osborne insisted in the latest salvo of a public spat between the coalition government parties over spending plans.
The Chancellor hit back after his Liberal Democrat deputy at the Treasury Danny Alexander claimed the Tories would "inflict unnecessary pain" on the country by shrinking the state.
Speaking to BBC News, Mr Osborne said:
We are going to have to make savings... we are going to have to cut certain welfare bills like benefits that go to working-age people. But the prize is economic stability, growth, jobs in the future, brighter future, I think that's a price that works for our country.
Danny Alexander has accused the Conservative Party of "pandering to Ukip" in a pre-election "panic" as the coalition colleagues continue to trade blows.
The Chief Secretary to the Treasury claimed the Tories would "inflict unnecessary pain" on the country because they were "ideologically committed" to shrinking the state and had a policy of "austerity forever".
In an article for The Daily Telegraph, he wrote: "It is sad to see the Conservatives move away from the sensible, balanced approach of the coalition, to a more doctrinaire policy that would inflict unnecessary pain on the people of Britain."