Interview: Darling on the budget
Updated on 23 April 2009
Gary Gibbon talks to Chancellor Alistair Darling about the tax, spend and levels of national debt announced in the budget.
On the treasury's growth forecast, the chancellor said:
"There is a range of forecasts. Many are pessimistic, some are optimistic.
"Inevitably at a time like this when there are so many moveable parts, if you like, there is going to be some uncertainty. I have got to try and reach a judgement about what is realistic. I certainly should not be overly optimistic, nor should I be pessimistic.
"What's the big uncertainty at the moment? Well frankly I think it is what is happening internationally. We are the second biggest exporter of services. We're the sixth biggest exporter of goods. It actually matters to us how other economies are doing."
On reducing public spending, Alistair Darling said:
"I don't think anyone can fix a spending review two years in advance, especially at a time like this when there is so much uncertainty. But of course, in two years time, in five years time for that matter, chancellors have to take a view as to what is happening in the economy at the time that they present their budget.
"Obviously if the economy does better and there is more money coming in, that to some extent determines how much you are able to spend.
"After you have had a shock like this...you've got to have a long hard look at tax, you've got to have a long hard look at spend. Now, what I did yesterday was to say given what we know, given the fact that we need to continue to help the economy just now, here is a path which I believe will lead to a sustainable recovery."
On income tax, Darling said:
"I don't think it is unreasonable to say to the top one per cent of earners, many of whom have done quite well over recent years, you need to contribute a little bit more as we get through this.
"This is something we had to do because of the extraordinary circumstances which we face.
"I do want people to feel when they get out of bed in the morning it is worth going to work, that when people work hard they get the reward for themselves and their families.
"But in these circumstances when it comes to raising revenue, I've tried to be fair. And I think it is fair to say to people at the top of the tree, to people who had done really well, you need to make an additional contribution.
"In an ideal world, nobody wants to put up taxes, but we have a situation where our borrowing and debt levels are necessarily high at the moment because of what has happened."
