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  1. ITV Report

Budget Analysis: Pasties and static caravans, now what?

The Chancellor George Osborne and Prime Minister David Cameron Photo: PA/PA Wire/Press Association Images

George Osborne claimed his 2012 budget "rewarded work".

Labour labelled it "a budget for millionaires". And pasties and static caravans hit the headlines as people partial to buying either faced price hikes.

But like last year, the Chancellor has little room for manoeuvre as he prepares to set out the Government's spending plans for the years ahead.

David Cameron: But will be be smiling later? Credit: Rui Vieira/PA Wire/Press Association Images

Amid grim economic predictions, Mr Osborne has already said that it will contain measures to "help those who aspire to work hard and get on".

But he has also warned there is "no miracle cure" and "painstaking work" will be required to get the economy back on track.

We know there will be help with the cost of childcare.

There could be an announcement that a £72,000 cap on the amount people must pay for social care will be brought forward to 2016.

Police budgets are expected to be protected Credit: Calendar

Whitehall departments are expected to be ordered to make further savings on top of cuts from previous budgets and autumn statements.

The Cabinet has been told that the savings will be made possible because departments have under-spent their budgets and the £2.5 billion that could be saved over two years will be put towards capital projects designed to kick-start much-needed growth.

Labour's Shadow Treasury Minister Chris Leslie warned it would be "a huge disappointment" if that was "the only additional investment" in infrastructure.

Health, schools, overseas aid and HM Revenue and Customs budgets look like they will be left alone.

Police and local government budgets will be protected - for the next 12 months. And again like last year, pressure is mounting to take action on rising fuel costs.

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