Darling defends economy comments

1:36pm Saturday 30th August 2008

Alistair Darling has insisted it was his duty to be straight with the public, after delivering a dire assessment of the UK's economic prospects.

The Chancellor said the UK was experiencing a "profound downturn" amid "unique" pressures from the credit crunch and soaring food prices.

Mr Darling was trying to clarify his position after an interview with the Guardian in which he warned that global economic conditions were the worst for 60 years, and no-one knew how bad things would get.

The remarks were the gloomiest official assessment so far of the UK's situation - significantly worse than previously voiced by Gordon Brown.

Mr Darling told Sky News: "We are facing a profound economic downturn along with every other country in the world.

"The difference is between us and previous governments, other parties, is that we are taking action to help people - whether it is rescuing Northern Rock, or whether it is helping people to get back into work as they lose their jobs, or tax rebates which are due at the end of next month."

However, he insisted that the Government would "help" people hit by the crisis, and played down rumours of tensions with the Prime Minister and other senior figures.

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