Budget: Darling lowers UK economic forecast

Chancellor Alistair Darling pointed to what he described as "more challenging environment than was apparent at the time of the 2007 Pre-Budget Report", reflected in the continued disruption in global financial markets. As a result, the Chancellor said, UK GDP growth was forecast to slow from 3pc in 2007 to 1.75pc to 2.25pc in 2008. However, he added GDP was anticipated to pick up to 2.5pc to 2.75pc in 2009 and 2.5pc to 3pc in 2010. Inflation was predicted to stabilize at 2pc by 2009. This showed that while the UK and other economies had benefited from globalisation, capital markets we...