The quiet Budget

CHANCELLOR Alistair Darling offered few sweeteners for voters in the Budget, which he announced to the House of Commons today, just weeks before a general election.

This was not a classic pre-election Budget but, then again, it was not expected to be.

In fairness, Mr Darling promised little in the run-up and it was clear that the crippling deficit made it impossible for him to lure the electorate with some vote-winning policies.

The Chancellor admitted that the level of government borrowing is forecast to be £167billion this year and that public sector net debt will be 54% of GDP, rising to a frankly unsustainable 75% in 2014.

Although borrowing is actually £11billion down on the figure predicted in December's pre-Budget report, it is still a massive amount, and it has left Mr Darling's hands tied.

The Chancellor made few startling announcements with no changes to rates of VAT or income tax and a four-year freeze on the inheritance tax threshold.

But, as ever, duties increased on those little pleasures in life - alcohol, cigarettes and fuel.

The biggest rise was attributed to cider which will go up by 10% above inflation from midnight on Sunday.

Beers, wines and spirits will rise by 2% above inflation and tobacco duty is up 1% above inflation, both from midnight on Sunday.

Most distressingly of all, Mr Darling retained the increase in fuel duty, a terrible decision with an election expected in just 43 days from now.

Motorists can take a small morsel of consolation in that the rise will be staggered, with increases in April and October 2010, and January 2011, rather than being effective all in one go.

But surely the Chancellor has noticed that prices at the pump are already sky-high at the moment.

The average price for a litre of unleaded fuel at 117.3p - and more than two-thirds of that is tax. Add on road tax, insurance and breakdown cover and the car will soon be on its way to becoming a luxury item once again.

While Mr Darling said there would be "no giveaways" in this Budget, he has characterised it as "a Budget for recovery" but evidence of this was thin indeed.

The big announcement to scrap stamp duty for first-time buyers on properties valued below £250,000 is presumably meant to energise the property market.

But this only works if the potential buyers are in a position to afford a first home.

And, with interest rates low and credit hard to come by, it seems unlikely to benefit many people, especially as the duty will return in two years.

Meanwhile, the one-year business rate cut for companies will be wiped out by the failure to reverse the decision to increase the rate of employers' National Insurance contributions.

Liberal Democrat leader Nick Clegg accurately described the Budget as "insubstantial waffle... built on growth figures that are unlikely to materialise".

It did all seems nothing more than hot air while, after weeks of the polls narrowing, Prime Minister Gordon Brown must fear a backlash over the fuel duty rise, one of today's few defining points.

The Budget has certainly meant danger for Labour in the last two years, as shown by the UK Polling Report blog.

The website explains, "In both cases Alistair Darling was forced to deliver news about just how bad the economic situation was. Both turned a Labour deficit of around about 6 points into a Conservative lead in the mid teens."

Of course, a swing in the polls may not happen this time with core support for both of the main parties hardening in the run-up to the election.

Undecided voters may also be put off the David Cameron's questionable Conservative commitment to cut certain services immediately in an emergency budget after the election.

What should also help Labour is that the economy is on slightly surer footing now than it was in 2008 and 2009.

But that is not saying much and neither was the Chancellor today in one of the dullest pre-election Budgets ever.

*For an at-a-glance guide at the Budget, see this listing on the BBC website.