Chancellor gambles to save economy
Chancellor Alistair Darling has gambled on a rapid economic recovery to rebuild Britain's battered finances as he revealed this year's borrowing would hit a record £175 billion.
In a grim Budget statement, Mr Darling outlined the full depth of the economic crisis.
But he insisted public finances would get back on track with a halving of borrowing within four years as the economy began to recover from the end of the year.
Despite the bleak figures, Mr Darling insisted the economy would begin to recover from the end of the year.
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 warned that output would shrink by 3.5% this year - more than doubling his previous forecast - as the country battled with the worst global downturn in 60 years.
He also said inflation would plunge to minus three per cent by September.
The Chancellor said the planned new top income tax rate of 45% on incomes above £150,000 will be increased to 50% and take effect from next April - a year earlier than planned.
And from April 2011, pension tax relief would be restricted for those with incomes over £150,000.
