Budget Day confirmed as March 24

THE Budget will be held on March 24, the Treasury confirmed today.

The Chancellor’s statement comes at a critical time for the economy and ahead of the general election, which commentators believe will be on May 6.

With the state of public finances prompting intense debate  – the deficit is set to peak at £178bn this year – all eyes will be on Alistair Darling to outline his plans for the recovery.

While public spending is under the keenest focus other measures include more green-related taxes.

VAT is expected to be put up to 20% this year, but it is unlikely that Mr Darling will risk such an unpopular measure with polling so close.

On Sunday, Mr Darling said his Budget would show he was “on course” to cut borrowing from its forecast peak.

He has ruled out a full spending review until there is more certainty about the economy.

Revised figures last month showed the economy emerged more strongly from recession at the end of last year than had previously been thought, but some economists have warned that growth could easily falter again in the coming months.