Why George Osborne's budget promises to be a frugal affair

The chancellor still has many reasons to be cautious despite the improvement in public finances seen in January

In an ideal world, George Osborne would be sitting in the Treasury putting the finishing touches to a nice, fat giveaway budget. Five years ago he imagined that by now he would have cut the deficit to below 40bn, providing the scope for some pre-election sweeteners.

Doubtless the chancellor will still have a couple of surprises to spring on 18 March, but despite the improvement in the public finances in January, the budget will still need to be a relatively frugal affair.

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