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Darling's budget balancing act

Updated on 20 April 2009

By Andrew Thomas

Chancellor Alistair Darling faces a financial dilemma, as a combination of cuts in public spending and green incentives are expected to form the basis of Wednesday's budget.

Launching a new industrial strategy this morning, Prime Minister Gordon Brown said that Britain was "overcoming" the recession and stressed the need to continue to invest and "go for growth".

But with public sector debt continuing to spiral and fears that the government will never recoup spending on the banks' bailout, there are questions over whether the chancellor can make the sums add up.

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