Gordon Brown’s ninth budget poses a classical pre-election dilemma. On the one hand, the chancellor could boost Labour’s chances for the upcoming general elections by announcing a range of feel-good measures such as tax cuts. On the other hand, he must convince voters that the public finances are being managed prudently.

Commentators say the level of public borrowing does not give Mr Brown much room for generosity. Mr Brown has also ruled out a “pre-election spending spree”. The most likely compromise is a range of inexpensive measures, which benefit key voter groups while not burdening the strained public purse too much.