The U.K. is clearly focused on the chancellor's forthcoming "Budget" on Wednesday in which he will spell out his spending plans and cuts over the next year but the specter of a potential exit from the European Union - a "Brexit" - is looming large over the proceedings.
Chancellor George Osborne is expected to announce a new wave of austerity measures and spending cuts when he presents his budget to parliament at lunchtime on Wednesday. He is also expected to update ministers on economic projections for the U.K.
Lastly, the subject of the referendum on June 23 on whether to stay or leave the EU is expected to feature prominently in his speech. A so-called "Brexit" has become a distinct possibility with polls suggesting the vote will be too close for comfort for Prime Minister David Cameron, who is backing Britain staying in a "reformed Europe."
Cameron's critics feel that promises for reforms in the EU do not go far enough and that Britain would be better off outside the political and economic bloc. "Stay" campaigners say leaving would be a leap into the unknown and could leave Britain in the economic and political wilderness.