Darling triple whammy hits the rich

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

In a bleak Budget statement, Mr Darling said the economy would shrink by 3.5% in 2009 - more than double his previous forecast - but predicted a return to growth before the end of the year.

The new top tax rate will be introduced in April 2010, while people with incomes over £150,000 will also see their pension tax relief restricted from 2011 and personal allowances will be scrapped for incomes over £100,000 from next April.

Mr Darling set out plans for a tax and spending squeeze that will bring in £6 billion by 2012, rising to £17 billion by 2014, although that will still not bring the Budget back into balance until 2018.

His calculations, however, depend upon a forecast growth rate of 1.25% next year, rising to a heady 3.5% in 2011.

But soon after his Commons statement, the International Monetary Fund issued its own forecasts, predicting the UK would still be in recession next year, shrinking by a further 0.4%. The IMF forecast for the current year was also more pessimistic than the Chancellor's, estimating a 4.1% contraction in output.

The Tories said Mr Darling had delivered a "dishonest Budget" based on "fantasy forecasts".

The Confederation of British Industry also cast doubt on Mr Darling's "optimistic" figures.

CBI director general Richard Lambert said: "The key question for this Budget was whether it set out a credible and rigorous path for restoring the public finances to health. The CBI's preliminary judgment must be that it does not.

"The Chancellor's economic forecasts for next year and beyond look optimistic. By pushing out the horizon for balancing the books as far as 2018 the Government is running too much of a risk."