Critics say it’s a credibility gap, Darling

The adage that ‘‘the devil is in the detail’’ is never more true than of a government’s annual budget statement. The immediate reaction of media pundits and economic observers is based on the headline grabbing rises and cuts in taxation or expenditure. It’s only in the days that follow that a true picture of the impact on the economy can be gauged.Alistair Darling’s second budget began with the hype over the introduction of a 50p tax rate for high-earners and questions about his predictions on the speed of the recovery from recession. But these issues have since been superseded by claims of ‘‘the death of New Labour’’ and outrage that it will be more than two decades before Britain returns to pre-bank-bailout levels of debt.

British GDP falls more than forecast

Residents of Great Britain have been told GDP will plunge by 4.5 percent in 2009, the largest one-year fall since 1931. Britain has been urged to take more forceful measures against the economy falling much deeper than expected. Economic forecasters have confirmed gloomy assessments of prospects for the British economy following the release of the GDP growth figures.

The newest figures are in sharp contrast to the figures given by British Chancellor of the Exchequer, Alistair Darling, in his 2009 budget, when he forecast GDP would shrink by only 3.5percent. Opposition figures have used the GDP numbers to accuse the government of being frivolous with public spending.

Britain's unemployment now stands at nearly 2 million and many predict it could reach 3 million by the end of 2009.

British Property Prices Seen Falling

Two large British property companies warn of the ongoing impact of the credit crisis on the residential and commercial marketsThe global credit crisis has already had a serious impact on both the residential and commercial property markets and the problems will continue, two of Britain's biggest property companies warned yesterday.

Bovis Homes, the housebuilder, said it expected its average sale price for 2007 to be 3 per cent lower than a year ago, while Liberty International, the real estate investment trust, warned investors' appetite for commercial property was showing signs of waning.

Bovis, the UK's fifth-largest housebuilder, warned that consumer confidence had been damaged by turmoil in the financial markets. "People have become nervous," said Malcolm Harris, the company's chief executive. "What we need is for the market to return to normality and people to get their confidence back."