Budget 2009: We’re Broke
April 23, 2009
Alistair Darling has said the UK will have to borrow a record £175bn as he admitted the economy faces its worst year since the Second World War. The package would steer the UK through to recovery, he said.
The Tories said the economy was in an “utter mess”. Leader David Cameron said not enough had been done to get spending under control and “Britain simply cannot afford another five years of Labour”.
Total government debt will double to 79% of GDP by 2013 – the highest level since the Second World War. The annual budget deficit will rise sharply to £175bn for the next two years.
The Budget received a cool reception in the City with the pound down – and the Confederation of British Industry said it did not set out a “credible and rigorous” path to recovery.
Full coverage and analysis of the budget is available through BBC News