Here we go - let the cutting begin

So after an incredible general election which put the economy centre stage, a remarkable coalition deal and then the early appetiser £6.2 billion cuts, we now come to the meat.

George Osborne will set out exactly what he plans to do to tackle the £155 billion deficit in three quarters of an hour.

I am told Labour's vindictive plan to hike tax on cider will be dealt with, along with measures to reverse a tax raid on holiday homes which put billions in the Westcountry's tourism industry at risk.

The Sun is reporting that Capital Gains Tax will rise to 28 per cent, which sounds a bit like trying to be higher than 18 but lower than 40 - pleasing neither Lib Dems nor right wing Tories.

I stuck my neck out yesterday and said I wasn't sure VAT would rise. The FT makes a similar prediction this morning. We will see.

Anyway, we'll get the full details in 45 minutes.

For now, here is what Mr Osborne has had to say first thing to whet our appetites:

“My budget is tough but it will be fair. This is an unavoidable Budget because of the mess we have to clear up.

“So the Coalition Government will take responsibility for balancing Britain's books within five years.

“We're going to do it fairly, protecting children and pensioners, and ensuring the richest contribute the most.

“And it means getting enterprise going, because it's businesses, not government, that will create the jobs of the future.”

Darling warns Osborne: 'I know where the bodies are buried'

Alistair Darling gave a pre-Budget briefing this afternoon. A bit of a climb-down for the former Chancellor, and not hugely detailed.

In his defence, he noted how he no longer has the full Treasury machine to do his number crunching, just one (rather young looking) assistant by his side.

But he made clear that When George Osborne rises at 12.30pm tomorrow, the former Labour Chancellor knows the tricks of the Treasury.

“I am well aware of what is lying around in there,” he said pointedly.

Asked what sort of things the civil servants might be proposing, he added: “As you can imagine in the Treasury there are a whole host of ideas, some are fit for human consumption, some are not.”

Even so, he would be “astonished” if VAT did not rise to 20 per cent tomorrow.

I confess I am not so sure. Both Cameron and Osborne went further than they needed to in recent weeks to suggest it was not on the cards – almost with a wink - and within a whisker of ruling it out completely.

I wonder if the government has been happy for the VAT thread to continue in recent weeks, only to announce tomorrow that it won’t rise after all.

But then, I don’t know where the bodies are buried.

UPDATE: A lot of eyes will be on what happens to Capital Gains Tax. Westcountry Lib Dems are keen to see the election pledge rise implemented, targetting amongst others second home owners. But Tories are not happy. As Torridge and West Devon MP Geoffrey Cox has just tweeted: "Hoping George will spare the prudent who have buried a bone for a rainy day. "

Where's the meat then, George?

George Osborne made great play at his outdoor press conference this morning about how he was being much more open about the efficiencies than Labour ever were.

No more hiding behind vagaries of “efficiency savings”.

The message does not seem to have got through to all government departments though.

The Department for Communities and Local Government will be saving £362m in cuts in grants to local government.

Asked which grants, I was told: “You might have to wait until the Budget.”

That would take us to the end of June – almost three full months into this financial year. Until then presumably, councils must twiddle their thumbs and wait to be told if the money John Denham, John Healey et al promised just a few weeks ago will ever turn up.

Over at Defra, £162 million in cuts are planned, including vagaries like “limiting recruitment and reducing the number of non-permanent staff; operational savings in IT, estates and procurement; and savings within the delivery of selected programmes”.

Again details hard to come by.

The Department for Transport promises to make savings on “the deferral of £54m that would have been spent on lower priority schemes”.

The Department for Business pledges “£82 million from efficiencies in Universities”.

Fingers crossed that by the end of the day there is a bit more meat on these bones.

At present, it looks like a vegetarian’s feast.

Live from Whitehall, The Coalition. Forget Prog-Rock, this is prog(ressive) politics.

Lead singer David Cameron sat the first 20 minutes out, leaving his incongruous backing band to thrash out their solos on the platform.

First up, deputy lead singer Nick Clegg rattled through some familiar riffs – freedom, fairness, responsibility. He must get used to playing these big stages.

Next, Home Secretary Theresa May brought a bit of glamour, promising bobbies on the beat, cutting paperwork and more freedom.

Vince Cable, the Liberal Democrat Business Secretary, was having technical trouble. When he was due to take centre stage, a roadie was adjusting his microphone. Ms May offered to fill time by dancing, though it is Mr Cable who is more usually found twirling ladies around ballrooms.

In the awkward delay, Mr Cable joked: “We're making it up as we go along.”

Unfortunately this had the ring of truth to it. Flicking through the coalition agreement, where policy clashes have occurred the wording of the final statements are a fine blend of compromise, vagaries and fudge.

The vote on hunting has become a vote on whether there should be a vote on hunting. Lib Dem Chris Huhne’s energy department will draft the government’s pro-nuclear policy and he will then campaign against it.

And a pledge to freeze council tax for two years has become a one year commitment, while they will “seek to freeze it for a further year, in partnership with local authorities”.

Cutting the deficit takes precedence over everything, we were told again and again. Except, it seems, when there is a publicity budget to spend.

Towering over yesterday’s coalition press conference, at least ten feet tall, were two floor-to-ceiling billboards almost entirely blank but bearing the logo of this new politics.

Inevitably, it also had the mark of a design guru – a colon. It read: “The Coalition: our programme for government.”

The Coalition was written in green. Blue (Tory) and yellow (Lib Dem) of course make green. Keep up at the back!

Mr Cameron insisted it would be “churlish” to look for the holes in the agreement, when hacks should be focussing on all the things they could agree on.

The mood music may be positive now, but as the axe falls on pet projects and divisions emerge on key policies, Tory and Lib Dem backbenchers may be less willing to dance to The Coalition’s tune.