Budget date announced

Alistair Darling will deliver his first Budget as chancellor of the exchequer on Wednesday March 12th, the Treasury has announced.

Mr Darling will make his Budget speech in the House of Commons in the midst of what Sky News calls "the gloomiest economic situation for more than a decade", with the credit crunch continuing to create uncertainty throughout the financial sector.

According to the Institute of Fiscal Studies, the chancellor will have to increase taxes by £8 billion overall if he is to avoid a major shortfall in government revenue caused by falling levels of stamp duty and corporation tax.

In a speech to the Royal Society for the Encouragement of Arts, Manufactures and Commerce in London last month, Mr Darling admitted that the Treasury is now operating in "far more turbulent and uncertain times than we've felt for many years".

He also said that the Treasury should "be at the heart of government decision-making" and determine "the strategic direction for government".