Details of budget emerge as Cable is called to Treasury

By Alex Smith / @alexsmith1982

UPDATE: The Times has details of likely new duties on alcohol; the Telegraph has details of a possible “pollution tax”.

In an Observer report about a meeting between Treasury officials and Vince Cable to discuss the Liberal Democrat’s willingness to be chancellor in the result of a hung parliament, details of the content of Alistair Darling’s budget on Wednesday budget are also emerging.

The Observer says:

“The chancellor has little room for manoeuvre in pre-election giveaways, but one idea being seriously considered is to delay a 3p rise in petrol duty. Darling will announce a £1bn green infrastructure fund to invest in low-carbon technology and extend job schemes to help unemployed young people into work.

While the deficit is expected to be as much as £10bn below the £178bn forecast in his December pre-budget report, the Treasury stresses the focus will be on the chancellor’s commitment to halve the deficit within four years. “It’s a boring budget,” said a No 10 source. “He may extend the odd payment here and there, but it is about stability and jobs.”

In his weekly podcast, Gordon Brown states today that the recovery remains “fragile and in its infancy”. The prime minister says that Labour’s commitment to cut the deficit is “non-negotiable”, but stresses that investing in jobs and programmes for industry is a way to reduce it in the medium term.

“It means not taking away the extra support too soon, which risks setting back the recovery and tipping us back into recession… If we allow unemployment to run riot, as happened in previous recessions, that will cost us more and add to the deficit,” he says.”

Speaking of the possibility of becoming chancellor after the election, Vince Cable said:

“I wouldn’t be in this business if I wasn’t willing to take the responsibility if it was to come my way.”