James Forsyth

We can expect at least one rabbit out of the hat in George Osborne’s Budget speech. The Chancellor is a canny enough operator to have held at least one big announcement back. Already this morning, we have had news that all councils will freeze or reduce their council tax next year. But I expect there is one more on fuel to come in the speech itself, possibly the suspension of the fuel duty escalator for this parliament. This move would be expensive but it would also say I feel your pain and stop Osborne having to come back to the price of petrol every year. For Ed Miliband, today will be a test of his ability to think on his feet.

In stark contrast to 2003, when Gordon Brown delivered his Budget on the same day that Baghdad fell, the Treasury is phlegmatic about the Budget being overshadowed by Britain’s involvement in a conflict overseas. But the signs are that this will be, within the obvious fiscal constraints, an ambitious Budget. Tonight, we have had confirmation of a raise in the income tax allowance to £8,000, something that will please the Lib Dems . Tomorrow, we’ll almost certainly get at least one unexpected rabbit out of the hat. What we do know is that the Budget and the growth review will be built around four things: deregulation, planning reform, tax simplification and targeted investment.

The House of Commons has just voted by 557 to 13 to support Britain’s participation in the enforcement of UN Security Council Resolution 1973. This came at the end of six and a half hours of respectful debate rounded off by a speech from the Foreign Secretary that reminded us why he was for so long regarded as the best parliamentary performer on either side of the House. Hague offered an assurance that if the mission changes, the government will return to the House. This was widely understood to mean that no ground troops would be committed without the support of the House. He also confirmed that the costs of the operation would be met from the reserve. Having watched much of the debate, I would say that the mood of the House was not quite as the vote suggests.

David Cameron deserves huge credit for tonight’s Security Council vote. He has kept plugging away for a no fly zone and has succeeded in moving the Obama administration’s position. Cameron’s decision to have Britain table with the French and the Lebanese a Security Council resolution without the support of the Americans or even having talked to the president was a bold move that has turned out to be a game changer. The Prime Minister has proved himself an effective and courageous actor on the world stage. The question now is how quickly and effectively military force can be deployed and how Gaddafi is to be ousted. It, obviously, would have been better if the no fly zone had been imposed when the rebels had the military momentum.

David Cameron’s statement on Libya today reflected his growing frustration at the pace at which the wheels of diplomacy are moving on this issue. In his statement, Cameron warned that ‘time is of essence’ and that Gaddafi staying in power, something Cameron had previously called ‘unthinkable’, would send a ‘dreadful signal’. Time, really, is of the essence. If we don’t see movement in the next few days, it seems almost inevitable that Gaddafi will crush the revolt. One of the things that Cameron stressed is that Gaddafi continuing in power would be more than a moral and humanitarian disaster.