A taxing deal?
I have learned that the Conservatives will not implement a key part of their National Insurance tax cut next year, in order to make a start on raising the main income tax threshold to £10,000 a year.
Confirming what Robert Peston reported earlier, the Conservatives have indeed taken on this Liberal Democrat pledge as a priority on tax for a Conservative-Lib Dem coalition. This is how they plan to show they are in good faith.
Remember that Labour has put in train a rise in both employer and employee National Insurance from next year. This tax rise was always going to go ahead under the Conservatives. But to prevent it from affecting most taxpayers, they had pledged to raise the threshold at which both employers and employees pay national insurance.
Now, as part of the agreement with the Liberal Democrats, they are going to only raise the employers' threshold - and use the money saved to raise the basic income tax threshold instead.
I'm told that this increase in the allowance will be significant, costing more than the rise in the employee threshold which it replaces - though nothing like the nearly £17bn it would cost to go all the way to £10,000. They will need to raise money from somewhere else as well, but the bulk of the money will come from not implementing that piece of their national insurance cut.
For many taxpayers, the difference will be fairly academic. True, pensioners who earn more than the current income tax threshold but don't pay national insurance will benefit more from the income tax change. But their income tax allowance is high already, so it won't be big money.
But clearly, this was an important symbolic concession for the Liberal Democrats.
Contrary to some reports, I am told that the Conservatives have stuck to their guns on the modest tax cut for married couples in the Tory manifesto, but the inheritance tax cut is indeed firmly on the back burner .
As previously indicated, the Tories have stuck to their guns on the commitment to cut public spending by at least £6bn more than Labour was planning in 2010-11 - my sense is that it could end up being more than that.
They never seriously contemplated rowing back on this crucial part of their USP for the financial markets. But there has been some form of assurance that the cut will not go ahead in full, if the economy drastically weakens in the next few months.
Vince Cable can draw comfort from this, and perhaps even more from today's encouraging news about manufacturing output.
As a result of the new output figures for March, the first estimate for growth in the first three months of 2010 is likely to be revised up. Indeed, for all the talk, this recovery is starting to look rather like past rebounds.
We might have hoped for something better, after an unusually steep downturn, but the news is reassuring all the same. In terms of rhetoric, it will help the Liberal Democrats make the case that a £6bn additional spending cut may not be, er, quite as cataclysmic as previously claimed.
Come to think of it, I guess Vince Cable will also have to rethink his scathing assessment of the Conservatives' promise to find an extra £12bn in efficiency savings this year. But something tells me that won't be the greatest piece of fancy footwork demanded of him and his Liberal Democrat colleagues in the weeks to come.
Now we wait to hear what the Governor of the Bank of England decides to say - and not say - about all this at his press conference tomorrow morning.