GEORGE Osborne has been called upon by the Scottish Government to introduce in tomorrow's Budget a "significance increase" in the work allowance to help those who receive in-work benefits lift themselves out of poverty.

Nicola Sturgeon also used a keynote speech at the London School of Economics to call for a change to how Westminster organises its annual set-piece Budgets, saying it should replicate the Holyrood system of several months of consultation before policies are implemented.

Indeed, the First Minister hinted that such a move could be a condition of any post-election deal with Labour.

In her address, entitled "Beyond the Budget", Ms Sturgeon argued that any serious attempt to tackle inequality had to focus on in-work poverty, referring to the work allowance, which determines when people entering work start to have their benefits reduced.

She noted how while an increase of £600 in the tax-free personal allowance would be welcomed and boost the income of someone on Universal Credit, who paid income tax, by £42, a similar increase in the work allowance would boost it by £390.

"That's why the current UK Government policy of freezing work allowances is so misguided. It effectively cuts the benefits of workers on low incomes," the FM argued.

"So the Scottish Government is calling today on the UK Government to announce in this week's Budget a significant increase in the work allowance to help ensure that those in work have a better chance of lifting themselves and their families out of poverty."

Much of her speech was about how the procedures of Westminster needed to be "overhauled" to improve them and referred, in particular, to the Budget.

She noted how the current system allowed virtually no time for proper deliberation and consultation while successive Chancellors took pride in pulling rabbits out of hats, creating headlines and wrong-footing their opponents.

But Ms Sturgeon stressed how the Holyrood approach was much better as it built consensus, providing time for scrutiny and negotiations to take place.

A more consensual approach at Westminster would be "very beneficial," she argued, stressing: "Who knows, it could be one of the benefits of a period of minority government following the General Election."