Budget 09: Darling's speech in full

Since the autumn, we have put the banks on a stronger footing, cleaning up their balance sheets, and helping boost bank lending.

As a result, banks will be able to lend billions of pounds more this year and next, to homebuyers and businesses.

Getting credit flowing again is the essential precondition to economic recovery.

In the Pre-Budget Report, I announced a range of measures to help the country through the recession, putting £20bn back into the economy.

This help is coming through now – from an income tax cut, and a VAT reduction which will continue until December.

There is increased support for pensioners, as well as investment in vital public services and accelerated capital projects – protecting thousands of jobs.

And because of the reforms we have made to the welfare system since 1997, this comes on top of extra help when families need it most.

I understand the anxiety behind calls to support those whose wages have fallen.

This is exactly the support our flexible system can – and is – already offering.

As shorter working weeks or irregular patterns reduce wages, those on tax credits can see an automatic increase to compensate for the loss of income.

In March, for example, 355,000 families were receiving on average £35 a week more support through tax credits.

Demonstrating how our welfare system automatically helps people when they need it most.

Mr Deputy Speaker, fiscal support has been complemented with sharp reductions in interest rates by central banks around the world.

The Bank of England interest rate is now down to half a per cent, the lowest it has ever been.

This has reduced the cost of mortgages and loans.

The average saving, since October, for the 4 ½ million families with tracker mortgages is over £230 a month.

And we have now given the Bank of England new means to support the flow of credit and put money into the economy.

Inflation has come down which means people’s income will go further.

Taken together, the total policy support for the UK economy is expected to protect up to half a million jobs.

Other governments across the world have been doing the same.

The total amount of fiscal support, across the G20, will amount to over 5 trillion dollars.

Mr Deputy Speaker, there’s also been unprecedented co-ordinated action at an international level.

The G20 group of economies came together – first in November and then in London earlier this month – to fight this global recession.

We agreed to take whatever further measures are necessary to deliver the IMF forecast of global growth of over 2 per cent by the end of next year.

In total, the G20 agreed over one trillion dollars of additional support for the world economy.

Mr Deputy Speaker, there are no quick fixes. No overnight solutions.

But because of the progress we have made, here and internationally, we can begin to restore confidence, save jobs, and bring the world economy more quickly out of recession.

Now we must make sure we deliver on these agreements – starting at the meeting of world finance ministers in Washington this week.

And I want the next meeting of EU finance ministers to be focused on rebuilding growth in Europe, based on the foundations laid by the G20.

We also need a clear path to recovery – both fiscally and by investing to build Britain’s future.

Mr Deputy Speaker, the UK went into this global recession with employment at an all-time high, inflation, public debt and interest rates at low levels.

But no country can insulate itself from this worldwide downturn.

The position here, as in every country, deteriorated in the autumn.

In the last few months, world trade fell at the sharpest rate since 1945.

As a result, banks will be able to lend billions of pounds more this year and next, to homebuyers and businesses.

Getting credit flowing again is the essential precondition to economic recovery.

In the Pre-Budget Report, I announced a range of measures to help the country through the recession, putting £20bn back into the economy.

This help is coming through now – from an income tax cut, and a VAT reduction which will continue until December.

There is increased support for pensioners, as well as investment in vital public services and accelerated capital projects – protecting thousands of jobs.

And because of the reforms we have made to the welfare system since 1997, this comes on top of extra help when families need it most.

I understand the anxiety behind calls to support those whose wages have fallen.

This is exactly the support our flexible system can – and is – already offering.

As shorter working weeks or irregular patterns reduce wages, those on tax credits can see an automatic increase to compensate for the loss of income.

In March, for example, 355,000 families were receiving on average £35 a week more support through tax credits.

Demonstrating how our welfare system automatically helps people when they need it most.

Mr Deputy Speaker, fiscal support has been complemented with sharp reductions in interest rates by central banks around the world.

The Bank of England interest rate is now down to half a per cent, the lowest it has ever been.

This has reduced the cost of mortgages and loans.

The average saving, since October, for the 4 ½ million families with tracker mortgages is over £230 a month.

And we have now given the Bank of England new means to support the flow of credit and put money into the economy.

Inflation has come down which means people’s income will go further.

Taken together, the total policy support for the UK economy is expected to protect up to half a million jobs.

Other governments across the world have been doing the same.

The total amount of fiscal support, across the G20, will amount to over 5 trillion dollars.

Mr Deputy Speaker, there’s also been unprecedented co-ordinated action at an international level.

The G20 group of economies came together – first in November and then in London earlier this month – to fight this global recession.

We agreed to take whatever further measures are necessary to deliver the IMF forecast of global growth of over 2 per cent by the end of next year.

In total, the G20 agreed over one trillion dollars of additional support for the world economy.

Mr Deputy Speaker, there are no quick fixes. No overnight solutions.

But because of the progress we have made, here and internationally, we can begin to restore confidence, save jobs, and bring the world economy more quickly out of recession.

Now we must make sure we deliver on these agreements – starting at the meeting of world finance ministers in Washington this week.

And I want the next meeting of EU finance ministers to be focused on rebuilding growth in Europe, based on the foundations laid by the G20.

We also need a clear path to recovery – both fiscally and by investing to build Britain’s future.

Mr Deputy Speaker, the UK went into this global recession with employment at an all-time high, inflation, public debt and interest rates at low levels.

But no country can insulate itself from this worldwide downturn.

The position here, as in every country, deteriorated in the autumn.

In the last few months, world trade fell at the sharpest rate since 1945.