Darling announces 2009 budget date - Business - Evening Standard
       

Darling announces 2009 budget date

Alistair Darling will present his annual budget statement on April 22 and expectations are rising that he will pledge further fiscal stimulus for the recession-hit economy.

"I can tell the House that, following the meeting of the G20 countries in April, this year's Budget statement will be on the 22nd of April - that is when the House returns after its Easter recess," Darling told parliament.

He looks almost certain to cut his forecast for economic growth for this year. In November, he predicted the economy, which fell into recession at the end of last year, would start recovery in the second half of 2009.

Economic data all around the world, however, have come in weaker than expected and the Bank of England on Wednesday forecast that the British economy would shrink for most of this year and at a much sharper rate than it had forecast three months ago.

The International Monetary Fund has said Britain's economy will be the hardest-hit among the Group of Seven, shrinking by 2.8 percent this year. Darling said in November that GDP in 2009 would fall by between 0.75 and 1.25 percent.

Given the dire economic outlook, there are growing expectations that Darling will ramp up public borrowing again on top of his 20 billion pound stimulus plan announced in November.

Prime Minister Gordon Brown's Labour government, lagging in the polls and needing to fight an election in less than 18 months, has repeatedly cited the virtues of higher government spending to pull Britain out of recession.

"Fiscal stimulus is hugely important," Treasury minister Yvette Cooper told parliament on Thursday.

The November pre-budget report forecast public sector net borrowing of 118 billion pounds, or some 8 percent of GDP, in 2009/10 and the government is already issuing a record amount of gilts this year.

But Darling will be keen to stress an intention to bring the budget deficit back under control once the economy recovers.

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