His argument for not acting with greater vigour to cut public spending seems to rely on his optimistic forecast that we will start to see a recovery by the end of this year with growth in 2010. This seems so far out of line with almost every other forecast that it is scarcely believable. I didn't even get the impression that the Chancellor really believed it either so downbeat was his presentation of that section of his speech. Indeed, overall, he seemed to lack conviction, perhaps demonstrating that he feels totally hemmed in by the economic and fiscal circumstances.

Cameron's response has been all bluster and even less substance, although I have always thought that it must be one of the most difficult speeches to make. As I said yesterday, the real test for the opposition will come later in the Budget debate when Osborne and Cable get their chance to launch more considered critiques of the Budget.