we intend to offer you a job but...

[Lollysuns]

'We are waiting for paperwork and budgets to be finalised and singled off before we can formally make you the offer'

Reason they gave for delay was the Christmas break.

I really want this job and I know patience is key here, but what do people think? Formality or are they unsure?

They said 'need to finalise some forms on the budget.'

I keep going from thinking positively to feeling like it's not going to happen.

ach I am waiting on one something similar - Tuesday is decision day will be mightily fucked off if not given a start date. Will also be looking for something else - its becoming utterly critical now not just annoying

I would say you are Plan B if the person they really want doesn't start for some reason. Don't hand your notice in until you've got the offer in your hand.