Following hot on the heels of David Cameron’s demand that Ed Miliband rule out a coalition with the Scottish nationalists, a Tory leak in the Sunday Times indicates that the undeclared general election campaign is now well under way.

The paper reported that Chancellor of the Exchequer George Osborne is planning to use his Budget, due on March 18, for an income tax giveaway and cuts in alcohol duties, while bringing in a “Google tax” crackdown on multinationals that avoid corporation tax in Britain.

Unpopular Tory governments have always sought to provide pre-election bribes, and such an approach from Osborne was always on the cards, given the cuts in public services and benefits and the fall in real wages that have taken place since the Con-Dem coalition was cobbled together by banking and finance interests in 2010.

However, while many workers will benefit from the plan to raise the income tax threshold in April “towards £11,000,” instead of the projected £10,600, the spin being put on this is unjustified.

First, the objective, according to an unnamed “senior government source,” of “lifting the poorest in society out of tax” ignores the fact that the poorest — those on minimum benefits, basic-rate state pensions and zero-hours contracts in particular — already pay no income tax since their incomes are well below the current £10,000 threshold.

Second, it ignores VAT, council tax and other payments, which mean that the poorest 10 per cent in Britain pay 43 per cent of their income in tax — an enormous burden which can mean making crucial choices between eating, heating and buying clothes.

In contrast, the wealthiest 10 per cent pay only 35 per cent of their declared income in tax — and we know that there are many ways in which they can reduce what they declare.

Third, for public-sector workers, the gain from the higher threshold will do nothing to make up for the increased pension contributions imposed by the government “reforms.”

Fourth, it does nothing to address the broader issue of low pay and in fact can be used by employers to justify not paying the living wage.

The other “leaked” Budget proposal was already announced by Osborne in his Autumn Statement — forcing multinationals to disclose revenue and profits on a country-by-country basis and then applying a punitive 25 per cent “diverted profits tax” where they are judged to have artificially shifted money abroad to avoid corporation tax.

The measure is designed to look progressive without actually being so.

There is a myriad of ways in which corporations can avoid tax liabilities between jurisdictions, such as transfer pricing between subsidiaries and charging for the use of brands.

Without legislation to prevent this, and to close down tax havens under British jurisdiction, the measure is likely to have little effect, especially as staffing at HM Revenue & Customs has been slashed under the coalition government.

Furthermore, the “Google tax” does nothing to address the already low level of corporation tax, which has been cut four times by this government, culminating in the 20 per cent figure due to come into force in April — one of the lowest rates in Europe.

Enterprise Minister Matthew Hancock was quoted yesterday as wanting to reduce it further, to something approaching the 12.5 per cent figure in Ireland.