Darling dismisses tax rise claims

Mr Darling said people were "hard-pressed" and it was not time to be "taking money out of the economy" when asked repeatedly about whether there were plans to raise income tax.

"This is not the time when you would want to be taking money out of the economy. People are hard-pressed at the moment, people are finding difficulties. I can't really make it clearer than that," he told BBC Breakfast.

He added: "This is not the time to be imposing additional burdens and indeed actually, this month, the vast majority of basic rate taxpayers, the 22 million people, are actually getting a tax rebate, a tax cut.

"I really don't think I can make the position any clearer than that. Basic rate taxpayers are receiving a tax cut."

Mr Darling was speaking ahead of a key speech at the Labour Party conference in Manchester on Monday when he will promise to take whatever steps are necessary to deal with the current financial turmoil.

Speaking on GMTV, Mr Darling said he was confident the economy would weather the current storms.

He said: "It is right at the present time that we support the economy. It is right also that we take action to ensure that some of the things that have gone very wrong on the banking side are put right.

"What I am determined to do is to make sure that, after 10 years of an economy growing pretty strongly, that we get through this difficult time despite the fact that we really are facing very difficult conditions. I am confident we will get through it."

In his speech Mr Darling is expected to concede that no national government acting alone can deal with the problems of globalisation.