According to the chancellor, the government did not expect the recession to become as bad as it has.
The current recession has taken the government by surprise, the chancellor admitted in an interview yesterday.
Speaking to the BBC, Alistair Darling said that the downturn had proved to be "far deeper" than initially expected. This follows the release of new reports suggesting that the UK will face a recession of near-unprecedented severity in 2009.
In November's Pre-Budget Report, the government forecast an overall annual economic contraction of just 0.75-1.25 percent. This is out of kilter with more recent reports from other organisations, with the Paris-based Organisation for Economic Co-operation and Development predicting last week a 3.7 percent contraction for the UK in 2009.
The government will issue an updated forecast in the Budget, to be delivered by Mr Darling later this month.
In the interview, the chancellor also hinted that the state of the public balance sheet remained a concern. The government is facing big shortfalls over the years to come, due to the cost of its fiscal stimulus schemes aimed at boosting the economy as well as a drop in tax revenue caused by the downturn.
The International Monetary Fund predicted recently that 2010's deficit would exceed 11 percent of total domestic output for the year - a level that is unsustainable over the long term.
"I have to balance the need to support our economy with the fact that you have got to ensure that, in the medium term, all countries live within their means," Mr Darling said.
Also speaking yesterday, shadow business secretary Ken Clarke told the broadcaster that debt was also a concern for the Conservatives. "Because of the crushing burden of debt that we have, public debt and household debt, I think our problems when we come out will be very great and the consequences of this appalling recession will be with us for some years to come," he commented.
