With the UK still in recession, the Pre-Budget Report 2009 will set out the Government's expectations for gross domestic product (GDP) in 2010 - which are expected to be revised down - and beyond.

And, continuing the work started by the November 2009 Queen's Speech it will draw the battle-lines for the 2010 general election, the last possible date for which is Thursday 3 June 2010 (external website).

Expectation surrounding this year's Pre-Budget Report has built further still as it is being delivered later in the year than normal. The Observer reports that the Treasury chose to delay the Pre-Budget Report 2009 until 9 December 2009 (external website), as it was "pinning its hopes on the ONS changing its [GDP] calculations [...] in case they make the economy look healthier." The improvement, as it turned out, was only marginal.

The Telegraph expects the Pre-Budget Report 2009 to make for grim reading (external website). It reports that Darling is "determined to leave voters in no doubt over the 'tough choices' that needed to be taken as the government strives to hit its target of halving Britain's soaring public deficit over the next four years".

The Times, in contrast, predicts that, as a result of the ongoing precariousness of the UK economy, the Pre-Budget Report 2009 will not now include swingeing cuts to public spending. It says that the Pre-Budget Report 2009 will be "'neutral' [...] without significant new tax rises or measures to curb public spending". It believes that the toughest decisions on public spending are now to be put off until after the election.

But while the bad news on public sector job cuts might be deferred, it remains possible that the Pre-Budget Report 2009 will deliver some ill tidings for public sector workers, particularly with regard to the outlook for public sector pay awards in 2010.

Speaking to Personnel Today recently, British Library HR director Mary Canavan, summed up why the Pre-Budget Report 2009 will be critical for public sector employers and employees. Canavan said:

The impact for us is about to come, as we're awaiting the Pre-Budget Report. We've all heard the various pledges that the political parties have made at their conferences, and there isn't very much positive news there for the public sector.

The news for public sector workers set out in the Pre-Budget Report 2009 may yet prove to be anything but 'neutral'.

• Pre-Budget Report 2009: Follow it live on XpertHR We will be providing live coverage of the Pre-Budget Report 2009 speech as it happens, highlighting the proposals of most interest to HR and reward professionals.