George Osborne will announce extra investment to crack down on tax avoidance by global companies with British operations.
The Chancellor plans to bolster the Inland Revenue team that deals with multinationals amid widespread condemnation of big-name firms such as Starbucks, Google and Amazon after it emerged they pay little or no corporation tax in the UK.
Starbucks is preparing to change its tax affairs so it pays more into Britain's coffers following a customer boycott, according to The Sunday Times.
Mr Osborne told BBC 1's Andrew Marr Show: "I think you can do two things. One is you can enforce the taxes we have got and I am going to be announcing tomorrow extra investment in the part of the Inland Revenue that tackles tax avoidance by multinational companies.
"Second, you make sure internationally we have the right rules and it is actually Britain who has been working with Germany and France to get those rules on the international table.
"It will be a big priority for the G7, G8, which we host next year.
"So we are doing those things but let me just say we can't tackle this by pricing Britain out of the world economy. If we make our taxes less competitive that will just mean more companies stay out of Britain."