Budget compilation
- 00:02:38
- ITN
Budget compilation
Chancellor Alistair Darling has slashed economic forecasts as he accepted that Britain faces its deepest recession since the Second World War. Delivering his second Budget, Mr Darling warned that output would shrink by 3.5 per cent this year - more than doubling his previous forecast. He also predicted deepening deflation with the Retail Price Index falling to minus 3 per cent by September. Mr Darling revealed that borrowing this year would soar to a record £75 billion - with another £173 billion in 2010 - as the country battled with the worst global downturn in 60 years. But he insisted that the economy would begin to pick up by the end of the year, with growth of 1.25 per cent in 2010. But Tory leader David Cameron launched a scathing attack on the Government's handling of the economy. He said: "As of today any claim they have ever made to economic competence is dead, over, finished." Mr Darling was left with little scope for fresh action to revive an economy struggling under a savage downturn. But he said the Budget would provide help to get people back into work quickly and set aside an extra £1.7 billion for Job Centre Plus and New Deal. He also outlined measures designed to support businesses and homeowners facing problems. There is also support for investment in the growth and green industries of the future and the Government will work to rebuild Britain's financial services. Mr Darling said the impact of the global recession was being felt in every continent, country and community. He told the Commons: "When the world economy was plunged into deep crisis in the 1930s, the response, both nationally and internationally, was too little and too late. "This failure to act turned a serious downturn into a prolonged depression. We will not repeat those mistakes again." He said governments across the globe had taken "decisive action". "This action, taken promptly and decisively, gives us good grounds for confidence," he said. The Chancellor told MPs his Budget would "protect investment in schools, hospitals and other key public services" and rebuild the nation's beleaguered financial services. He said: "Taken together, this Budget will build on the strengths of the British economy and its people, speed the recovery, providing jobs and spreading prosperity." Warning that the recovery would take time, he said: "There are no quick fixes. No overnight solutions. "But because of the progress we have made, here and internationally, we can begin to restore confidence, save jobs, and bring the world economy more quickly out of recession." And he added: "I am also confident that, as the global economy recovers to double in size over the next 20 years, Britain can, and will be, a world leader and this Budget will help make sure we seize this opportunity."
ITN | April 22, 2009
