I wouldn’t want to swap places with Alistair Darling when he steps up at 12.30pm next Wednesday to deliver what could well turn out to be his swansong as Chancellor of the Exchequer.

He appears to be firmly wedged between a number of rocks and a lot of hard places.

Delivering on a promise to reduce a record post-war public sector debt by half within the next four years would represent a sizeable challenge at the best of times.

However, trying to do it without annoying (in many cases, annoying further) those people soon to vote on your political future appears mission impossible.

Raising taxes would raise funds quickly…but also raise the hackles of those shortly making their way to the polling stations.

It also has to be remembered that VAT was increased from 15% back to 17.5% in January and from April, a new 50% top rate of income tax already looms large. At the same time, personal allowances for those earning more than £100K will be restricted too.

People expect their financial burden to be eased during such difficult times, not made even worse.

In addition, taking more money out of consumers’ pockets would surely put in jeopardy the progress of what seems to be only a fragile economic recovery.

Yet doing nothing when the public finances are in such dire straits is not an option either.

As a result, spending cuts seem likely, with a rearrangement of some already well shuffled public services on the cards.

However, this is certain to impact people financially too, with job losses in the public sector the almost inevitable outcome of so-called ‘efficiency savings’.

Whatever the Chancellor decides, the phrase ‘rearranging the deckchairs on the Titanic’ keeps springing to mind.

To be honest, I’m surprised that anyone actually wants to win the election.

When the main prize on offer is an invitation to work out how best to sort out the sorry mess the public finances are in, I would gladly settle for second place.

Tim Leonard, Senior Reporter, Moneyfacts Group

It’s tempting to suggest that, had Alistair Darling stood at the dispatch box when recently delivering the Pre-Budget Report and announced that that he had managed to clear the global deficit, voices of dissent would still have made themselves heard, both inside and outside the House of Commons.

Image: Has the Chancellor pulled a rabbit from the hat, or is he pulling the wool over the public’s eyes?

So, by increasing National Insurance by 0.5p from 2011 for those on £20,000 or more – dubbed an ‘extra tax on jobs’ by the CBI – and implementing further restrictions to pension relief for higher earners, the Chancellor ensured reaction was, shall we say, mixed.

Mr. Darling built his address around the notion of fairness and coaxing the economy out of recession, rather then stunting impending growth. He told the Commons: “Those on modest incomes are protected. Those on middle incomes will pay more depending on their earnings. The biggest burden will fall on those with the biggest shoulders.”

The one off levy of 50 per cent on any bank bonuses of £25,000 or more has made headlines as it was designed to do, but seems to have done little to appease a general public that is already hearing of multi-million pound figures being given to bankers on top of their salaries, all while the UK remains in recession.

There was some talk of hitting any bonus over £10,000 with this one-off tax, although this didn’t come to fruition, as was the case with the windfall tax that the banks had feared, a decision which will no doubt rankle amongst rank and file workers who count themselves fortunate to still be employed.

But enough about me. Other key points included a pledge to help young unemployed people back into work, tax rebates for wind farms and electric cars and a household boiler scheme, which will look to pick off where the car scrappage scheme left off. Also noteworthy was Mr. Darling’s decision not to extend the Stamp Duty holiday, a move that many housing bodies had called for in the weeks leading up to the announcement.

It remains to be seen if this inaction will slow the apparent upturn in the sector; an accusation the Chancellor will be loath to attract following his assertion that his announcements were designed to aid any recovery, not wreck it.

The decision to freeze the individual Inheritance Tax allowance at £325,000 for the next year has also been condemned, with accusations that the lower limit has not moved in line with soaring property values over the past decade.

And what of pensions? Well, the Chancellor will surely point to the 2.5 per cent increase – or a four per cent real-term increase if you prefer – in the state pension which will come into effect with the new tax year. However, his decision to extend the limitation on higher rate tax relief has come under intense scrutiny and criticism, as has the announcement that personal accounts will be phased in as part of cutbacks that have been designed to save £5 billion.

No shortage of criticism then, not least from the Conservative Party, which accused Labour of failing to take tough decisions and delivering a Pre-Election Report. In the face of such national debt, similar sentiment is likely to be replicated when the Budget is unveiled in April. However, George Osborne may not have to wait too much longer to get the chance to prove he can do better in reversing the fortunes of public finances.

Let us know how the changes detailed in the Pre-Budget Report will affect you.

James Henderson, Online Reporter, Moneyfacts Group