George Osborne will unveil the first Conservative budget for nearly 20 years today with the focus likely to be on welfare cuts and the raising of tax allowances.

The Chancellor is also expected to announce an extension of Sunday trading, inheritance tax and social housing.

There are reports that the programme for cutting the welfare budget by £12bn may be slowed and that the government will target tax credits for cuts.

There is likely to be more grim news for councils, who are braced for a further round of cuts to government grants.

Kent County Council has already flagged up fears that it will be forced to lop a further £80m from its budget over the next two years.

The Conservative-run council said that if that proved to be the case, it would not be able to safeguard key frontline services.

Cllr John Simmonds (Con), KCC deputy leader and cabinet finance member, said: “To date we have managed savings without significant impact on front-line services as the council has driven out efficiency savings and transformed many of its services.

“But KCC is not immune from the impact of further funding reductions. If the government wants us to deliver further substantial savings, it will be impossible without significant impact on the delivery of current services.”

The budget is also expected to raise the amount of money people can earn before paying tax, while the threshold for the 40 pence tax rate will also be raised.

Keep up with today's budget news with our live story here or head to Twitter and follow @KentBusiness, our political editor Paul Francis @PaulOnPolitics and our business editor Chris Price on @TheChrisPrice.