Darling’s Budget takes shape

Yep, it’s that time of the year again – when the government starts briefing about the contents of the Budget.  First up, there’s the news that Alistair Darling may cut projected borrowing figures by £5-10 billion, thanks to higher-than-expected tax receipts.  And then there’s Peter Mandelson’s claim that new tax rises would have to be considered a year from now – implying, perhaps, that there won’t many in this year’s Budget.

Many folk around Westminister were surprised that the government was putting out a pre-election Budget – especially given the sorry state of the public finances.  But Labour’s plan is becoming clearer now: lower borrowing figures, no significant tax hikes, a few public spending giveaways here and there – all this will be sold as progress, of sorts.  And as for already-announced tax rises, such as the national insurance hike, the government will hope that it has already taken the heat for them.