Darling: My duty to be straight

The Chancellor was forced to take to the airwaves in a bid to clarify his views after starkly warning that Britain was facing the worst global outlook for 60 years.

His remarks, in an interview with the Guardian, were the gloomiest official assessment so far of the situation - significantly worse than previously voiced by Gordon Brown.

The Tories immediately claimed Mr Darling had "let the cat out of the bag" over the state of the economy and proved that Government was divided at the highest level.

The Chancellor defended the thrust of his comments in a series of television appearances. However, he toned down his views by repeatedly stressing that the UK economy was "fundamentally strong" and that ministers would do all they could to help people hit by the crisis.

In his Guardian interview, Mr Darling said the economic times faced by Britain and the rest of the world were "arguably the worst they've been in 60 years". He also bluntly warned that the Government had its "work cut out" to persuade the public that it deserved another term in power.

Speaking to Sky News, Mr Darling said he had been right to be honest about the economic dangers.

"I think it is important that Government ministers and particularly me as Chancellor level with people," he said. "I explained that what is happening to every country in the world, ours included, is that we have a credit crunch the like of which we have not seen for generations."

But shadow chancellor George Osborne asked: "Who is telling the truth at the top of Government? The Prime Minister says the economic situation isn't as bad people think and that Britain is well placed to weather the economic storm, but the Chancellor says we are at a 60-year low.

"It's not clear whether Alistair Darling meant to tell us the truth about the mess 10 years of a Labour Government has left our economy in, but he has certainly let the cat out of the bag."