The chancellor is set to introduce further measures in the upcoming budget to stimulate the British economy out of tough trading conditions.
Alistair Darling indications of a budget focused around supporting the economy was revealed in an interview with the FT. Darling also defended government's £20bn fiscal stimulus boost to the economy, insisting it was the right course of action.
The chancellor said he will look to the Budget to 'see what I can do to support the economy', hinting he will consider measures that added to Britain's £118bn deficit next financial year. He is expected to announce a number of measures aimed at supporting bank lending to businesses within the next few weeks.
Measures announced in the pre-budget report last November, which aimed to boost the economy and support businesses, included the 2.5% VAT cut, tax relief for small businesses, and the £120 temporary tax made permanent.
Following years of light-touch regulatory procedures, Darling is today expected to call for new rules - to prevent banks using models which can lead to systemic failure, as well as for rules around liquidity - using the UK's chairmanship of the G20 group of leading economies and developing nations as support ahead of a London summit in April.
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