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More stimulus plans expected in Budget

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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