Public borrowing will go up and the wealthy, which seems to be anyone on over £20k a year, will pay for it. Yes, bankers have been hit with a bonus tax but the more stealthy NI measures will affect those of far lesser means despite what Darling says:

“The biggest burden will fall on those with the broadest shoulders,” Darling told parliament.

Markets are pricing in the Conservatives being in power by June and know that many of Labour’s policies may never be implemented. But almost everyone agrees that big spending cuts and more tax rises will be inevitable whoever wins the election.

Even if it was the only thing, Darling made that much clear. National Insurance would rise by a further 0.5 percent for anyone earning over 20,000 pounds in 2011.

Public sector wage rises would be capped at 1 percent, more generous than freezes planned by the Conservatives but a real-terms pay cut nonetheless for many on low incomes.

But basically the UK’s finances will remain in the same shoddy state as they are now until after the elecion.

“He has … missed the opportunity to increase the UK’s credibility by reducing the public deficit earlier,” said Richard Lambert of employers lobby the Confederation of British Industry. “We are no clearer today as to how the government plans to reduce public expenditure.”

Basically the ship will continue sinking until a firm hand is put on the tiller by whoever wins a general election. Roll on election time.