On Monday Alistair Darling delivers the most important Budget statement in a generation. Today we examine the health of the nation’s finances and the outlook for key social services

Gary Duncan, Economics Editor, The Times – 20 November 2008

Poor Alistair Darling. Less than three months ago the Chancellor was lambasted for saying that Britain was heading for its worst economic down-turn in 60 years. Now, as the Chancellor finalises next week’s PreBudget Report, he may have the satisfaction of being vindicated – but it is his fate to have to try to clear up the mess.

It is a grim prospect. With Britain now entering a recession that may be worse than that of the early Nineties, he faces the bleakest of outlooks. The Treasury’s books are already awash with red ink from the huge borrowing bills racked up during Gordon Brown’s ten-year stretch in No 11.

Yet with the threat of a deep and prolonged recession hanging over them, both Mr Brown and his Chancellor are intent on staving off a painful slump. So Mr Darling is expected to announce a substantial “fiscal stimulus” of tax cuts and higher spending to try to jump-start the economy. Full Article