Budget 2010: a Q&A on the economy and public finances

259PM GMT nineteen March 2010

Will the Chancellor lift forecasts for mercantile growth?

Alistair Darling is doubtful to be any some-more bullish than he already has been. In December"s Pre-Budget Report, the Treasury"s series crunchers foresee expansion of 1.25pc this year and an increase in speed to 3.5pc subsequent year. The numbers are some-more confident than those of most in isolation forecasters, though not as bullish as those from the Bank of England.

Ed Conway"s economics blog Budget 2010 what competence be in store for your finances? Sterling slides as vigour on Gordon Brown stays Budget 2009 Alistair Darlings debate Pre-Budget Report The perspective from the travel Your pre-Budget inform checklist

What will the Chancellor"s summary be on the economy?

Like any Chancellor on Budget day, design Mr Darling to intensify the positive. In his what will be his third Budget, Mr Darling has a little comparatively certain headlines to fasten on to the economy has emerged from the deepest retrogression given the 1930s and stagnation hasn"t soared past the 3 million symbol as most were forecasting in early 2009. But with the General Election looming, there"s approaching to be made at home collateral for the Chancellor in keeping any confidence on a parsimonious leash. After all, Gordon Brown"s choosing debate rests on the evidence that Labour has the policies to guarantee a frail recovery.

Will the Chancellor make known some-more assertive plans to cut the deficit?

Mr Darling is approaching to speak the denunciation of necessity cutting, but couple of design anything some-more petrify than we already have. Labour has affianced to separate the necessity - foresee to reach 12.4pc of sum made at home product this year - and argues that anything some-more would endanger the recovery. However, Mr Darling is approaching to be means means to envision that the Budget necessity will come in revoke than the �170bn foresee in the pre-Budget report, since fewer people have lost their jobs than expected.

How will monetary markets react?

The City will be examination closely, generally those who traffic and own UK supervision bonds, or gilts. With the Treasury wanting to steal bilions subsequent year to change the books, investors will be seeking for joining from the Chancellor to mercantile rectitude. But with an choosing on the horizon, couple of in monetary markets are awaiting the Chancellor to spell out in item how the plan to revoke the deficit. But any pre-election giveaways could still incite a pointy greeting in the worth of argent and the cost of gilts. The infancy of investors hold that the genuine Budget will be the one that follows the election.