By Jonathan Davies

The UK government's finances are expected to see a £6 billion windfall, according to BBC Economics editor Robert Peston, giving a boost to the Chancellor George Osborne as he delivers the Budget.

Mr Osborne is expected to reveal that by the end of the next Parliament, public spending cuts are set to be £3-4bn less than forecast in the Autumn Statement, and the annual surplus could be £2bn bigger.

Peston writes that some of the £3-4bn will go towards reducing spending cuts and some will go towards reducing borrowing.

Inflation, which is at a record low of 0.3%, is the main driver behind this expected windfall. Lower inflation reduces welfare payments and reduces interest payments on national debt, which is likely to rise to £1.6 trillion in 2016.

Robert Peston asks whether this windfall will close the gap on the question over the Conservatives or Labour ahead of the general election. But it's not that simple. Despite the UK's finances expected to be £6bn better off that the Conservatives predicted, there would still be roughly a £50bn gap between what Labour would cut and the Conservatives would cut.