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| Version 1 | Version 2 |
|---|---|
| Darling warns of economic crisis | Darling warns of economic crisis |
| (about 1 hour later) | |
| The UK is facing its worst economic crisis in 60 years, Chancellor Alistair Darling has admitted. | The UK is facing its worst economic crisis in 60 years, Chancellor Alistair Darling has admitted. |
| He told the Guardian newspaper that the economic downturn would be more "profound and long-lasting" than most people had feared. | He told the Guardian newspaper that the economic downturn would be more "profound and long-lasting" than most people had feared. |
| Using strong language, Mr Darling acknowledged voters were angry with Labour's handling of the economy. | Using strong language, Mr Darling acknowledged voters were angry with Labour's handling of the economy. |
| Ministers are expected to announce a package of measures next week to kick-start the moribund housing market. | Ministers are expected to announce a package of measures next week to kick-start the moribund housing market. |
| Voter anger | Voter anger |
| Britain is currently undergoing "arguably" the worst economic troubles in 60 years, the Chancellor said. | |
| He admitted the government had "patently" failed to get its message across that it understood people's concerns about rising living costs and growing job insecurity. | |
| This coming 12 months will be the most difficult 12 months the Labour party has had in a generation, quite frankly Alistair Darling | |
| He said that voters were "pissed off" with Labour's handling of the economy, a key issue at the next election, and said it was "absolutely imperative" that ministers communicated their intentions better. | |
| "We have got our work cut out. | |
| "This coming 12 months will be the most difficult 12 months the Labour party has had in a generation, quite frankly." | |
| The Chancellor has been criticised for sending contradictory signals over possible measures to assist homebuyers, particularly the prospect of a temporary suspension of stamp duty on home purchases. | |
| He also faced a backlash over the abolition of the 10 pence tax rate. | |
| In a wide-ranging interview, Mr Darling said that Labour had to rediscover its "zeal" if it wanted to be re-elected for a fourth term. | |
| But he admitted that was "a huge problem for us at the moment". | |
| How the government is trying to kick-start the housing market | |
| Mr Darling hinted at tensions within Gordon Brown's cabinet by saying there were "lots of people who'd like to do my job" and "no doubt, actively doing it". | |
| But he appeared to rule out an autumn cabinet reshuffle as Labour tries to wrest back the political advantage. | |
| "You can't be chopping and changing people that often. I mean, undoubtedly at some stage before the end of parliament he [Gordon Brown] will want to do a reshuffle but I am not expecting one imminently." | |
| Economic headache | |
| The Chancellor's remarks come after a summer of unremittingly bad economic news. | |
| House prices are falling at their fastest rate in 18 years, leading to fears of a wave of repossessions in the upcoming months. | House prices are falling at their fastest rate in 18 years, leading to fears of a wave of repossessions in the upcoming months. |
| Mortgage lending has slowed dramatically due to the credit crunch while key indicators have suggested that the economy could be poised to go into recession in the near future. | Mortgage lending has slowed dramatically due to the credit crunch while key indicators have suggested that the economy could be poised to go into recession in the near future. |
| The economy showed no growth in the second quarter of the year while building firms and retailers have laid off thousands of staff in recent weeks amid fears that the economy will deteriorate further. | The economy showed no growth in the second quarter of the year while building firms and retailers have laid off thousands of staff in recent weeks amid fears that the economy will deteriorate further. |
| A member of the Bank of England's Monetary Policy Committee said on Friday that radical action was needed to ensure the crisis did not get worse and warned of a sharp rise in unemployment. | A member of the Bank of England's Monetary Policy Committee said on Friday that radical action was needed to ensure the crisis did not get worse and warned of a sharp rise in unemployment. |