Chancellor Alistair Darling faces a tricky balancing act today as he tries to convince eagle-eyed investors that he is serious about tackling Britain's record deficit.
This will be all the more difficult due to the proximity of the general election and the fragile state of the economic recovery.
The chancellor has already said there will be no pre-election "giveaway" and it is unlikely that any new tax rises or spending cuts will be announced this close to the general election.
Realistically, this leaves him with very little room for manoeuvre, although the BBC's Robert Peston has confidently predicted that we could see an increase in tax allowances for capital spending by companies, which – if he's right – would be a significant boon for UK manufacturing.
PLEASE REFRESH THIS PAGE FOR THE LATEST ANNOUNCEMENTS LIVE FROM THE BUDGET 2010.
See next week's PrintWeek for more analysis of today's key announcements and what they mean for the UK print industry.
13:30 Looks like Darling is winding things up now, more on Labour's action during the recession and digs at the Tories for their opposition of some measures.
And that does indeed bring the Budget 2010 to an end. Not very much to mull over in an economic sense, but lots of electioneering from the chancellor.
Marcus Clifford, BPIF: "The response from George Osborne will be most interesting and will he offer bigger incentives to business owners?"
13:28 Increases to child tax credits by £4 a week for one and two year olds from 2012.
13:25 Loud cries of "Ashcroft" from the Labour backbench.
13:23 "We need to invest in skills and education," says Darling. This is followed by a promise of a one-off £270m in funding to help create additional university places.
Darling has a very obvious dig at Lord Ashcroft, claiming it is unfair for some to avoid their tax obligations.
13:20 The government will set up a £2bn green investment bank to invest in sustainable and renewable energy.
Labour won't revert to its "interventionist" past, Darling promises, however, nor will it take a hands-off free market approach.
Marcus Clifford, BPIF: "Here we go, some useful input for businesses; business rates, better investment allowances and reduction in entrepreneurial relief – will it be enough for ones looking at risk equation on heavier investment decisions?"
13:17 The extension to capital allowances means that SMEs will pay no tax on capital investments up to £100,000.
Mark Nelson, Compass Business Finance: "While there is undoubtedly a need to increase lending in the SME market, government pressure does not impact on the credit decisions made at ground level. It is the formal proposal being made to the correct financial institution that unlocks the capital needed in the market."
13:13 There will be a new growth capital fund to provide fast-growing companies with the capital they need. This will eventually provide £500bn of finance.
Darling will increase by 15% the proportion of government contracts that go to SMEs.
In addition, 80% of public sector invoices will have to be paid within five days.
Darling says £5bn of tax payments have been spread via the Time to Pay Scheme. The scheme will now be extended for the whole of the next parliament.
He announces that business rates are to be cut for one year from October for 500,000 small businesses.
He says he wants to "help small businesses expand" by doubling the annual capital investment allowance.
Marcus Clifford, BPIF: "No mention of capping or regulating high fees for any new money that might be opened up to SMEs and while ombudsman-type review of banks that won't lend is useful, cannot help but think it's more bureaucracy. Also, mention of private capital channels is interesting as private capital markets are very active at present anyway."
13:08 Now for the government's plans to promote economic growth.
"Access to finance is vital to small businesses," Darling says. RBS and Lloyds will provide a total of £94bn of new business loans, over half of which will go to SMEs.
Will this prove any more successful than the Enterprise Finance Guarantee scheme previously provided by the government?
There will also be a new credit adjudication service set up for SMEs who believe that they have been wrongly denied credit.
Marcus Clifford, BPIF: "No mention again of reducing the burden of compliance and bureaucracy on businesses!"
13:05 Darling says Tory calls to cut spending this year would "take demand out of the economy… and delay our return to sustained growth".
He claims the government has identified cuts and savings in excess of £20bn even before a spending review.
Details of the government’s £11bn savings announced in the PBR will be published today.
Marcus Clifford, BPIF: "So far, it's like looking at an extended party political broadcast on TV."
Mark Nelson, Compass Business Finance: "No specific stimulus for SMEs yet, although the amendment to national insurance will come as short-term relief."
13:00 Taxes next: No movement on the 1% increase in National Insurance. Darling says 60% of tax increases already announced will be paid by the top 5% of earners. "No further announcements" on tax.
Marcus Clifford, BPIF: "Shame, NI rises not reviewed in relation to job creation and cost to employers... so far, nothing for businesses seeking additional lifelines and support."
12:58 Darling claims this is the fastest deficit reduction plan of all G7 nations. He believes faster cuts would risk "derailing the economy".
"To go faster in the face of uncertainty would mean taking huge risks with people's jobs and the economy," he says.
12:55 Now the latest borrowing figures: The UK deficit is below the £178bn forecast in the PBR, thanks to tax receipts in December. January and February being higher than expected. UK borrowing this year will be £167bn, in 2010/11 it will be £163bn. It will fall to £131bn in 2011/12, then £110bn in 2012/13, £89bn in 2013/14, and £74bn in 2014/15.
Borrowing to fall from 11.8% of GDP to 5.2% within four years.
Marcus Clifford, BPIF: "We are still waiting for tangible support for businesses that will stimulate investment and growth."
12:52 Here come the forecasts: UK GDP growth expected to be 1%-1.5% this year. 2011 revised downwards to between 3%-3.5%, in line with Bank of England predictions.
Inflation is high at 3%, but much lower than double-digit figures of the 1990s.
Fuel duty increase to be staged to rise by 1p in April 2010, 1p in October 2010 and 1p in January 2011. Darling expects inflation to be back at 2% by January 2011.
12:50 Stamp Duty scrapped for first-time buyers of properties up to £250,000 from midnight tonight for two years.
Nothing yet on where the £11bn of "efficiency savings" announced in the PBR will come from.
12:47 Older workers to get extended support from tax credits via a reduction in the number of hours they need to work to become eligible. Also looking at optuions including scrapping the default retirement age.
Darling will extend the guaranteed offer of work or training for young people who have been out of work for six months to March 2012.
12:45 Darling says the car scrappage scheme led to a 30% increase in sales in the past year. Much time being spent stressing Labour's action to tackle the recession "in contrast", Darling claims, to past governments, which have "stood on the sidelines" during recession.
Onto unemployment... Darling seizes the opportunity to link the recent drop in UK unemployment with Labour's action. "The claimant count today [around 2.6m] is still lower than the number we inherited in 1997," he says.
Marcus Clifford, BPIF: "I think most business owners feel they have had little tangible support by government and banks as the chancellor seems to suggest happened!"
12:41 The chancellor confirms UK support for the proposed international banking levy and announces the government's plan to guarantee basic bank accounts for all.
He adds that a "healthy, strong financial services industry" is "vital" to the future of the UK economy.
12:39 Darling says the 50% tax on bankers' bonuses announced in the PBR has raised more than £2bn.
12:35 Darling is stressing the fragility of the economic recovery in the UK and the eurozone, where Spain is still in recession and Italy has slipped back into negative growth. "We need to support trade and discourage protectionism," he says.
Marcus Clifford, BPIF: "Hope the growth package delivers more than it promises. Evidence so far shows a big gap between what offered and what actually get for most SME owners."
12:32 Darling says Labour is sticking to its plan to halve the deficit in four years. He says the Budget will have at its heart a £2.5bn "one-off growth package" to help businesses invest.
Marcus Clifford, BPIF: "I hope he does lay out a new foundation for businesses to 'achieve their ambitions'! So far, little aid from government stimulus initiatives from past Budgets that impacted tangibly and at grassroots level."
12:30 Darling opens with a preamble about the global recession and the "difficult choices" it has necessitated. Expect some self congratulatory talk on the government's action over the past 18 months.
Darling mentions the fragility of the recovery and confirms the reports that borrowing is lower than predicted in the Pre-Budget Report (PBR).
12:30 The Speaker calls time on PMQs as Gordon Brown makes way for the Chancellor Alistair Darling.
12:25 The Prime Minister says every major country in the world has made the decision to support its economy in order to keep unemployment down below the levels of past recessions in the 80s and 90s. He claims the Tory Party's desire to take action to tackle the deficit faster would put the UK at risk of a double-dip recession.
12:15 Lib Dem leader Nick Clegg stands up and accuses both the Tories and Labour of blocking his party's attempts to clean up Parliament to loud jeers from both sides.
12:10 Tit for tat from the PM and the Leader of the Opposition, with Cameron criticising the PM for selling the UK gold reserves at rock bottom prices and the PM hitting back with the claim that the Tories have no serious policies to help the country.
Both sets of backbenchers are proving very boisterous, with lots of heckling from both sides.
12:05 PMQ’s gets off to a lively start with David Cameron congratulating the Prime Minister on crossing the picket line to make it to work, in reference to the striking civil servants outside Commons today.
12:00 Prime Minister’s Questions gets under way. Not long now until the main event.
Paul Holohan, chief executive of Richmond Capital Partners: "In the Budget I would very much like to see Alistair Darling change his mind on the proposed NHI rises. Any rise in the cost of employing people can only restrict the prospects of the unemployed and can only further add to the burden on industries which are already suffering.
"I would also hope that the £1m limit on CGT will not be removed as this would, in effect, be an attack on entrepreneurship, which is precisely what we do not want. Enterprise and entrepreneurship are the skills required to initiate recovery from the situation the country is in and we need to see more incentives for those who have the ability and willingness to lead companies into a brighter future.
"I would also like to see more support offered to the unemployed to start their own businesses rather than just turning up at the Jobcentres. There are many who would like to do this and have thought about it, but just don't know where to start. There are many currently amongst the unemployed with under-rated skills and regrettably the numbers are still rising. Advice and incentives from government could help those who really do want to start their own businesses. This could be initiated by personal evaluation at sign-on time to identify those with the potential to make a career for themselves in their own businesses.
"While I would be keen to see these measures, I do not hold out much hope. We may find CGT is left alone but creative incentives backed up by real support I simply cannot see happening, however important it really is."
