Lifting will help, though the outer wheel arch cutting is almost certainly required. Offset rims help prevent rubbing on the radius arms and inner wheel arches, though by widening the track the tyres no longer fit up into the wheel arches like they were designed, so again cutting outer arches need chopping out of the way.
If you turn the steering to full lock and articulate the suspension and then inspect the clearance round your 7.50r16 tyres. Anything within approximately 1.5" of the tread or 3/4" of the side walls will be a problem.