KEY POINTS:
Plans for a university campus in South Auckland are about to be unveiled, possibly in today's Budget.
Such an announcement would be a major plus in what is a make-or-break Budget for Labour.
The new institution is understood to involve Auckland University of Technology and comes after years of lobbying by Manukau's civic and education leaders.
It would fill a gap in the provision of university education in Manukau, where 40 per cent of the fast-growing population is aged under 20.
It is understood AUT has been working with the Government on potential sites for the new institution.
Manukau City Council has earmarked about 10ha in Hayman Park, near the city centre, and rail links.
The university would be a major economic boost for South Auckland, but if it is announced in the Budget, it is unlikely to steal the limelight from long-awaited tax cuts, tipped to be worth about $2 billion.
But as struggling households prepare for some welcome relief, Dr Cullen is reminding voters that there is a cost involved.
In Parliament yesterday, a fired-up Finance Minister responded to National teasing about his tax-cut record by saying the updated Government books would today show that allowances for future spending had been lowered.
"What it will mean - and let us be quite clear about this - is a slower rate of improvement in social services than would otherwise occur," Dr Cullen said.
"If anybody believes that I am going to start arguing that tax cuts have no cost, then they do not understand me."
His comments draw clear battle lines for this year's election campaign, in which Labour is going to try to convince voters it is the most responsible and trustworthy economic manager.
It will push that message after today's Budget, which will also include a major broadband internet announcement and some changes to the student allowance scheme.
Treasury forecasts are expected to indicate that inflation will start falling next year despite the Budget's tax cuts and other spending initiatives.
The Treasury is not forecasting a recession, and is understood to be picking unemployment to stay below 4 per cent for several years.
Details of Dr Cullen's tax cuts are a tightly guarded secret, but speculation suggests likely adjustments to tax rates at the bottom and middle end of the scale, and thresholds possibly moved higher at the upper end of the scale.
Dr Cullen and Prime Minister Helen Clark have tried to lower expectations about tax cuts, and yesterday they continued in that vein, saying the Budget would not please everybody.
"I've never seen people happy across the board about a Budget," the Finance Minister said.
