As growth falters, Osborne hopes Mark Carney can keep a lid on interest rates

The chancellor faces lower GDP and lower tax receipts as a result. So it's vital that consumers' desire to keep spending isn't hit by a nasty shock from the Bank

George Osborne might be running out of friends when next month's budget arrives. Like every chancellor before him, he likes to distribute goodies to lift the spirits of his backbench colleagues. More than that, he will want to offset the worst effects of the Treasury's austerity measures.

This he did in spectacular fashion at last November's autumn statement when higher GDP growth forecasts for the next five years allowed him to scrap planned cuts in tax credits.

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