Figures released today showing a further increase in the Consumer Prices Index to 4.4% in February coupled with the highest public borrowing for that month since modern records began in 1993.

The double dose of downbeat news means the Chancellor is unlikely to have room to give very much away in the Budget tomorrow.  The inflation figures will also increase pressure for the Bank of England to start raising interest rates soon and any 'giveaways' in the Budget would simply be seen as adding to inflationary pressures.

Some commentators had been calling for a review of the cuts announced to the public sector but the increased public borrowing requirement will mean that there is little possibility of George Osborne altering course now.