Vince Cable: Osborne has no room in budget for pre-election bonanza

Business secretary says any pre-election giveaway would undermine credibility, but acknowledges there is some opportunity for modest tax cuts

Vince Cable has warned that George Osborne has no room in next Wednesday’s budget for a substantial pre-election giveaway, but acknowledged that there was some headroom in the public finances for modest tax cuts or an increase in public spending.

The Liberal Democrat business secretary indicated the chancellor had a sum estimated at £5bn – that could be used to increase the personal allowance tax threshold or to row back from plans to cut public spending back to the level of the 1930s in the next parliament.