There is at least £730m of “reprioritised” spending in the PBR, covering new pledges on mortgage support, support for the unemployed, scrapping boilers, “strategic investment funds” etc.

The point is that Darling has decided that it is better to spend savings on new commitments, rather than paying down debt. It is an attempt at sugar coating what was always going to be a grim run down of the public finances. Read more

There is relatively little detail on where the cuts will come in various departments. But some blood is spilled on pages 109-110. This £5bn of additional savings comes from areas ranging from bus passes to cutting skills budgets. Here’s a selection:

– £1.4bn from withdrawing the “jobs guarantee” for young people from 2011 Read more

One moment of political theatre in this PBR was the raid on City bonuses to pay for increased support for unemployed youth. “This additional money will be used to pay for the extra measures, already announced, like help for the young and older unemployed to get back into work,” Darling said. But if you look at the PBR fine print, the pledge is not as simple as it seems.

Bringing forward the “jobs guarantee” for young people from a year to 6 months costs about £355m in 2010. But a footnote in the PBR notes that this is “funded by Department for Work and Pensions underspend”. No mention of the banker tax. Read more

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We’ve just returned from the Treasury briefing and there is plenty of fascinating detail to turn over in the PBR. But first it is worth highlighting one of the big strategic choices. While the package is broadly neutral, Alistair Darling has changed the fiscal mix in his plans to tackle the deficit: this PBR increases spending by raising taxes.

This balance between whether taxes or spending should carry the heaviest burden in terms of reducing the deficit is one of the most important decisions a chancellor can make. As we reported earlier this week, a recent Treasury study reviewing successful fiscal consolidations around the world gave ministers some sound and simple advice: the best way to close the fiscal gap is 80 per cent through spending restraint and 20 per cent through taxes. Read more