Win Sky+HD for a year and a trip to Barcelona

Taxpayers are at the limit of what they are willing to pay to fund public services, the Chancellor has said in an interview with The Times.
In his gloomiest assessment yet of the state of the British economy, Alistair Darling gave warning that the downturn was far more profound than he had thought and could last for years rather than months.
He revealed that he told Cabinet ministers this week that there would be no more money for schools, hospitals, defence, transport or policing.
He confirmed that the Treasury was considering revising its fiscal rules to allow more borrowing to deal with the economic problems. He said that he did not believe that voters, already struggling with higher food and fuel bills, would be willing to pay more tax.
“People will pay their fair share but you can’t push that,” he said. “My judgment at the moment is that there are a lot of people in this country who feel they work hard, they make their contribution and they’re feeling squeezed. Every Chancellor has to be very conscious of the fact that there’s a balance to be struck between how much you can spend and how much people will say, ‘OK, if you’ve got another pound to spend remember me as well’.”
His disclosure came as latest figures showed that public borrowing rose by £9.2 billion last month, well above City forecasts of £7 billion and the highest for June since 1993, when monthly records began. Borrowing of £24.4 billion between April and June was a postwar quarterly record.
Jonathan Loynes, chief European economist at Capital Economics, predicted that public borrowing would reach £57 billion this year, £15 billion higher than the Budget forecast.
Mr Darling said of this week’s Cabinet meeting: “I’ve been very clear with my colleagues that there is no point them writing in saying, ‘Can we have some more money?’ because the reply is already on its way and it’s a very short reply. I told them at the last meeting of Cabinet they’ve got to manage within the money they’ve got.”
The Chancellor also disclosed that to cheer himself up this week he went to a concert given by his musical hero, Leonard Cohen, whose songs are regarded as hauntingly depressing even by fans.
Laying bare for the first time the Government’s assessment of the scale of the downturn, he said that Britain could still be suffering by the next election, expected in 2010.
“At Christmas most people remained hopeful there would be an improvement by the autumn,” he said. “Most people would now say it’s far more profound. It’s affecting every economy and everybody. I can’t say how long it will last.”
He has already downgraded his growth forecasts twice, but he cautioned yesterday that the true picture was “at the bottom end of my range” set out in the last Budget.
Explore your passion for food with the delights of Thai, Indian & Chinese cooking
In our new series, Tony Hawks takes a dry, wry look at modern life - junk mail, interminable meetings and snooty sales assistants
Read the training tips and advice that helped our London Triathletes
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers
Shortcuts to help you find sections and articles
2007
£30,000
2006
£14,337
2008
£39,937
Great car insurance deals online
c.£75,000
GlosFirstmeansbusiness
Gloucestershire
£32,795 - £41,545
Universitry of Southampton
Southampton
£
£32,795 - £41,545
Universitry of Southampton
Southampton
Competitive Package
Npower
West Midlands
1 & 2 Bed apartments
From £249,995
Great Investment, River Views
Great Dubai Investment Opportunities
from £89,950
low-cost ownership homes in London
Las Vegas SALE!
£POA
With Ramblers Worldwide Holidays!
£POA
List your property with two leading travel websites
£POA
Great travel insurance deals online
'He revealed that he told Cabinet ministers this week that there would be no more money for schools, hospitals, defence, transport or policing. '
Funny how he left out immigration which has cost us more than all of the above combined.
Mike, London, UK
All you who are moaning, do not display a stereotype british mentality. its not just Britiain that is passing through a difficult economic phase. i dont know about you, but being a higher tax payer, i will be more than willing to pay extra tax to keep labour in power. KEEP IT UP DARLING.
Ahmad Nawaz, Bristol, UK
No doubt Darling and Brown will award themselves and other MPs a nice fat pay award to make them feel better!
Ray, Brasilia, Brazil
Council Tax has to be one of the most iniquitous taxes this country has! Our local council has no control over waste management!!
Wilson, Newbury,
Cut the massive bureaucracies created by this government - they are in all services. Simply ask what does this person produce which materially affects the service? The answer will show that we can rid ourselves of HR departments and all the other diversity nonsense.
Dr Ian Burgess, Bristol,
For the first time I respect him more because FINALLY (after months of spin, denail and head-in-the-sand-type behaviour) we are beggining to get close to an admission of what the public already intuitively knows is the truth! Government spending must now drop! Top-heavy goverment become slimmer too!
Steve, Leeds, UK
Time to cut back on public services - it's the dead weight that's dragging our economy down further. Why on earth Labour have increased it to the size it is beggars belief.
Rob, B'ham, UK
Borrowing your way out off financial problems is not a very prudent way in getting your house in order Mr Brown/Mr Darling. You should have been spending much closer attention to these banks,financial institutions and city traders who have landed us all in this mess.Get a grip!
James, Midlothian, United Kingdom
Smart guy. Who would have believed it?
Jeremy Poynton, Frome, Somerset
Darling has been given a poison chalace by brown, the economic problems are Brown's fault; he spent far too much during the good times in his foolish belief he had re-writen economic laws and banned the business cycle, while living off of the legacy he inherited from the conservatives.
John Lewis , Upminster, UK
The CDS' (Credit Default Swaps) fiasco has just started to surface. In 3 or 4 months things will be twice as bad as now with the credit crunch sending even more financial institutions down, ( RBS and Barclay's come to mind) ... Things are going to get a lot worse before they get better, roll on 2010
Amanda Archer, Lancaster, UK
What a sad, sad waste of 30 years and what a crime. Maggie was a success because she was the wife and daughter of two qualified businessmen. It has to be mandatory in my opinion for a country's leaders to have business qualifications and experience. These people couldn't run a knees up in a brewery
Nick, Athens,
I'm quite willing to pay. If the government said where it went. Last time I checked, my taxes went to 'save' private companies. This is just a long article to say that the LACON government is about to privatize everything.
Concrete, Grays,
It possible Alistair Darling won't be Chancellor come the elections...if things get worse and Labour lose the elections, Gordon Brown will try to save his own reputation and probably blame Alistair Darling .. for the mess this labour government...
as put the country in....
geedale, Leeds, west yorkshire
I would willing continue to pay this level of tax IF it delivered world class Health service, Education system, infrastructure.
On the contrary, it seems to deliver ever decreasing levels of productivity in all areas, due to them being flush with taxpayers' money.
Clive, Surrey,
Brown was not in economics, a PhD with thesis on Scottish Labour. The World economy was booming for a decade. He frittered away money on unreformed health and education services, benefits that support huge influx of immigrants and asylum seekers, aids to Africa and even to India. Labour is done.
Gary Smith, LONDON,
So, Alistair and Gordon have finally woken up from their comatose state, with empty pockets and a blinding headache. Well, that does tend to happen after a 10 year binge, enjoyed entirely at the taxpayers expense. And their solution - another sub-prime loan, to be repaid by our children. Wonderful.
Alan Gooch, Honiton,
Perhaps they could start by chopping all these ridiculous IT schemes like ID cards, NHS records and so forth - plus all these leeching consultants.
Peter, Suffolk,
Did Darling and Brown not think that if you are borrowing heavily in the good times it's not going to go too well when tax receipts fall or unemployment rises?
Never mind Prudence, what about competence?
Mike Carter, Bristol, UK
He said taxpayers are at the limit of what they are WILLING to pay. Not, they are at the limit of what they are able to pay. Not what is fair or reasonable for them to pay. They'll tax, no matter how excessive or unfair, until they can't can't away with it any more. Not for much longer, Labour!
R M, London, UK
Lets not forget that this government in the form of family credits has overpaid or lost thro fraud £1.5 billion in the last year. Yes, I'm not willing to pay more tax for this government to just keep giving it away to others & billions on ID cards. I receive very little as a single fatherless male.
Dennis, Norfolk,
So people don't want to pay more tax, so we will borrow. And just who has to pay the borrowings back ? Sounds like the advice from a daytime tv loan advert.
When ever I see darling, I'm reminded of the Eagle character from the "Muppet show".
roger, london,
The "....taxpayer can bear no more..." ,of this Government and its Ministers who continually are raking off loads of money for themselves to make not there first home but their 2nd Homes luxurious , when many of the people in UK who voted them in,mistakenly, have not even 1 home .
John, Woking, Surrey
It is important that theres a clear environmental signal, but we have to be mindful of the fact that we are all taxpayers, we are all motorists. Actually Mr Chancellor we are not all motorists. Some of us saw this coming and adapted their lifestyles accordingly. Shame you guys didn't.
Nick Smith, Cardiff, Wales
it's not that we are unwilling - we passed that point some time ago- but we are unable, mr darling to pay more tax.
your and mcbroon's philosophy of spend spend spend was bound to lead to a crisis sooner or later.
roll on the next general election!
grindles, london, england
Haha, this is fun! He should have said that on the first of april!
Fabio C, London, UK
The problem with the minimum wage is ;
All the jobs that paid just above the minimum wage were reclassified as min wage jobs completely de-valuing the whole process.
The immigrants that have sooo enriched our culture still don't get paid min wage and die on a Morecambe beach.
Nick Dixon, Sutton Coldfield, England
So why did MPs just vote for a pay rise? Who will fund that if not the poor taxpayer?
Matt, Naples, Italy
This Governemnt has consistently lied to the public about the state of the economy. They are incompetent and we need a change of Government in order to get through the very bleak times ahead.
Sara, London, UK
What a useless government and that is coming from someone who used to be a true Labour supporter!
When the times are good we should take the opportunity to pay off national debt and when the slump comes, take the opportunity to borrow.
We are now facing a recession with an already massive debt
Jamie, Halifax, West Yorkshire
This is indeed like looking at a slow motion train crash
The politicians and the bankers and high level public sector workers all have their little carriage at the back which they can run away down another siding. For them it was always a one way bet, but joe public always picks up the tab.
James, Oxford, UK
Is this worsening situation finally get the British people on the street? Frankly I doubt it, it far easier to stay home and watch television. Who's going to lead the revolution?
Phil, Paris, France
In the first year of secondary scholl, I was taught that "Democracy" is "government of the people, by the people, for the people". Hmmmmm.
John, Colchester,
Is it a case that the only house in the UK not reducing its spending is the House of commons ?
Joe, Geelong, VIC Australia
You have to feel sorry for Darling, McBusted left him in the mire, tied his hands and left him to fend against all this anti- tax feelings. As always McBusted hides and keeps quiet when decisions and clear leadership is needed.
McBusted do the sensible thing, resign!!!!
Lammy, Telford,
Solution:
1) Cut and simplify taxes (there are no incentives to working and saving)
2) Cut spending in welfare and income support
3) Borrow and spend on infrastructure like rail and energy
There will be pain no doubt, but without decent infrastructure the UK will fall further behind.
Alex, London, UK
Maybe you should start with taking away that 800,000-pound house you gave to that Arab Al-Qaeda chap and his brood of brats? Just a thought.
MaryJ, San Francisco, USA
Maybe we could stop handing out thousands in benefits to every person who turns up in the country claiming they need a house, education and medical treatment. The easiest way to fund services for the people would be to stop wasting it on those who have paid nothing into the system.
Tony Goodchild, Colchester, UK
We need to cut unemployment benefit, don't work for 6 month lose the lot. Hardworking people can't keep paying for the rent, beer money and lotto tickets of those that don't.
Dean, Southampton, UK
Dump the LSC - Learning Skills Council - what a gravy train!
Jan Varma, Coventry, UK
The SAME thing is happening in the USA where votes are bought by how much politicians can offer in programs and services. Now Obama is here promising evern more at taxpayers expense and the Republicans spent like Dems. Now look at us. Jobs exported, illegal immigrent, growing big brother...
William, Atlanta, USA
National economies only operate when they enable economic value to be added e.g. take raw materials and create a product someone wants.
Unfortunately politicians, bankers and major business people seem to have forgotten that and have decimated our ability to do anything as well.
dave, chorley,
Luckily we are no longer at risk from 'boom and bust', thanks to Crash Gordon and Dearest Darling we are all set to maintain a constant state of bust.
TC, London, UK
Will the British people ever get a decent government ? The answer is NO, because we have the same incompetents from two teams of incompetents fighting like cats in a bag to get their faces into the trough. What Britain needs is a Peoples Revolution, one looking after us. That would make a change.
Phil de Buquet, Newport,
Globalisation MUST STOP NOW. EU manbership should stop too. We can't afford it.
Daphne Kenward, Cambridge, UK
I'm sorry to say i think that, when the news of how bad the finances really are both of government and the general population, there's going to be trouble - on the streets. Brown and his entourage have for years been boasting of 'no more boom and bust'.
You ain't seen nothing yet!!
Rob, Isle of Wight,
Hopefully that means Brown & Co will stop funding all these silly 'Skills Academies' and 'Skills Councils' that are burning through public money at phenomenal rates and achieving absolutely zilch!
J Jenkins, York,
This current parties governance over the country has created an unsustainable burden of beurocratic inefficiency and red tape ,a real a barrier to enterprise , the real creator of employment and corresponding tax receipts !
If they think that borrowing will solve this crisis ,god help us.
Jim Pask, Wormit, Scotland
After more than ten years of rising taxes, fanciful statistics and claims excepted, what exactly has improved as a result of the much claimed 'investment' in public services? What exactly, in terms of productivity, is the rate of return?
m collins, Leeds,
It's about time the country woke up to the facts - labour has been a complete failure - billions spent in Afghanistan and Iran, billions spent on mostly unwanted new legislation. Billions spent by councils on unnecessary red tape. Lack of control on borrowing, uncontrolled immigration - out, out,out
Nigel, Portsmouth, England
I notice that the socialist government in Madrid is handing money back to taxpayers - from a surplus. The Canadians are doing the same !
How much is Brown handing back to help us through this mess ?
Oh! I forgot ...his plan is to borrow more in a crisis !
So this is the end of boom and bust ?
David, Swindon, UK
Nick, Bath, England
Wont happen
With your average British worker wanting at least £1,200 per month and the average Chinese production working making £1,200 per year and £600 per year in India
Well, you do the math
Source: HRC Mercer 2005
Phill, The Wirral, England
Darling says: The real problem we are facing today is a consequence of the fact that too many banks at a very senior level didnt understand the extent of the risk to which they had become exposed. Pot calling the kettle black, or what?
Alfred T Mahan, New Forest,
one place to cut spending is with the ridiculous extra layers of penpushers required to compile stupid statistics for meaningless targets... get rid of them and the money will be available to the front line workers themselves to use.
pcooke, Gloucester,
and if you want to cut real inflation, drop 25pence off the duty on fuel... that's where all the price rises are really coming from...
pcooke, Gloucester,
The taxpayer could bear no more years ago - good to know our detached politico's have noticed at last
Dave, London,
It's not the cost of public services, it's the huge transfer of wealth via tax credits.Many families get half their income this way and there is massive fraud. Cut it out and re-jig taxes so that much less is wasted in administration and the poor don't pay. Also, raise the minimum wage.
Colin, shrewsbury,
The level of tax in the UK is ridiculously high. It needs cutting fast now and public spending slashed, not capped and met by more government borrowing. Why does excessive borrowing happen every time Labour leaves office?
Ian, Bristol,
This government heaped far too much taxation on far too people. The fundamental mistake made was that during the property boom they taxed on income rather than comsumption; much of the money generated during the property boom was unregistered, cash-in-hand .
Costas, Cyprus,
This country has lost it's way.When Maggie and the unions destroyed manufacturing industry in the 80's financial services were supposed to then generate the nation's wealth.Now they have self destructed all we seem to be left with to do is government and the manufacturing of red tape.
Andrew, Bristol, UK
It has been blindingly obvious that the uncontrolled boom in the property market over the past 8 years would ultimately lead to disaster for the average wage earner.We need an economy based on manufacturing which will provide a solid, more stable platform for the country to grow.
Nick, Bath, England
Why not cut spending? I dont mean deprive essential services but there is too much wasting of public money in government departments which could be cut down.
Vivas, London,
So nothing for example, council tax ? is going to go up next year ? if you believe this you will believe quite literally anything.
debra steadman, Leicester,
Alistair Darling and the ever arrogant Brown underestimated the size of the looming recession because neither have any experience of business and finance and all the labourites seem to buy into Browns hot air. You can't borrow your way out of a credit crunch. The cost is too high.
Edward, London,
The real problem is high housing and mortgage costs, which ordinary people have to pay- including those employed by the state. We need a good bout of inflation to erode the value of mortgages and the wealth of those who have gained unfairly out of the housing markets
ian, slough, uk
Any single parent could run this country's economy more effectively than any of these pompous persons in pin stripe.
This is ENGLAND take note, and start representing ENGLISH PEOPLE!
Clive Burghard, Lancing, ENGLAND
Darling, get your chum at number 10 to find the courage to call a General Election NOW and England will give you its unequivocal verdict on the Labour government's performance.
Rick, London, England
We have to balance the books, why not Noo Labour...took them some while to wake up to reality.
Borrowing as a route to solve problems is a no brainer!
Alan Harvey, Fleet, UK
We need a major shake up of the tax system. Start with raising the tax free threshold to £10k and do away with the tax credit systems and all those who operate it, then do the same with road tax by adding it to the price of fuel. Remove all the bureaucrats this goverment employs it wastes ££££££££££
Chris, Bangor, Gwynedd
....and what your article fails to mention is the "old chestnut" - government borrowing crowding out [rivate borrowing - no wonder there is no money to lend to property buyers - look at the excellent tax free National Savings rates.
Richard, Newton Abbot,
It is the arrogant abuse with which our so called public servants treat the public purse that is so galling.
They always put themselves in a no lose situation as demonstrated by the character who has allegedly walked away with a pension pot of some £2 million pounds after a faux pas regarding data.
Mike O Connor, Plymouth,
... And yet, throughout all of this, who is it that suffers? I can guarantee the affluent remain so and it is, of course, the working class that, as always, is between the proverbial rock and... well I suppose we can subtitute a hard place for Labour in this case.
Richard, Essex,
Who thinks the public sector wont be hammered by the next Tory government is in for a shock Mr Walker. But the present lot are past their sell by. Lets just have the election and get some new blood in. I thought reading this that Mr D was distancing himself from Brown. Another leadership challenger?
David B, LARKHALL, UK
I'm afraid they're still at it I'm afraid. I arrived back from work today to find Greenwich council has a raft of job offerings. None of them fit the teacher, street cleaner, engineering role - they are all for totally ridiculous quangos, such as "Consultant for Ethnic Minority Achievement Officer".
James, London, UK
I'm so tired of this incompetent Government. Roll on 2010.
Alex, Buenos Aires, Argentina
He's admitting that the present government has bled the taxpayer to a standstill...and most of that during booming economic times, with almost no fiscal cushion for the predictable rainy day. He's confessing to incompetent governance. They should have the decency to just go! Cromwell, where are you?
Jim Mclaughlin, Calgary, Canada
I bet McBrooooooon isn' t happy with what Daring has admitted, he'll be sacking him. But lets get it right here, it is not Darliing's fault, he did not create this mess, it's all down to McBrooooon.
peter reddington, leeds, UK
This man is not paid to THINK! He is supposed to be in control and know.
henners, taunton, UK
No surprise this gutless cowardly government has gone for the borrow more option as it believes the electorate will be oblivious to the ramifications.
The only solution is to thin out our bloated public sector and get people on the dole back into jobs currently taken by immigrants.
A Harris, Kettering, UK
Yes, get the troops out of illegal wars, cut back aid to African despots, cancel the two super aircraft carriers, wield the axe to all the quangos and consultants, rein in unnecessary public spending and then give us,the British taxpayers, a few breaks!
Ian Dickson, Brighton, UK
The UK is taxed to death. The best way is to cut public spending, not borrow more or tax us more. This Government has recruited an army of jobsworths that are on the public payrole but do not contribute to the bottom line of essential pub;ic services. Goodbye Labour, bring on the General election.
Ian, Bristol,
The writing has been on the wall for a long time. Darling sure is a hell of slow learner. He is an out and out incompetent - just like Brown.
Christopher H, Queanbeyan NSW, Australia
Now is the ideal time to cut tax massively. Businesses are feeling the pinch all around the world, if we cut corportation tax, to like 1 percent, we would have companies around the world flocking here, employing people and making up the deficit labour have given us.
common sense so wont happen
will, grimsby, uk
And public sector workers are no longer willing to setlle for a pittance to provide essential services. Police, Nurses, teachers, coastguard, council workers unite and get rid of this lot
This Government should have come with a warning on the side
"New labour will seriously damage your wealth".
Tony Walker, Newtongrange, Midlothian
So much of this government's expenditure is wasted, on meaningless assessment, on quangos, on failed projects, on fraud, on the EU, etc etc. Labour Tax and Spend policy never worked and never will work, it's irresponsibility and not fiscal management.
Paul Freeman, London, England
Mr Darling, people are already paying far more than their "fair share". I, for one, am very angry that you think it is OK to take so much of my money and then waste a substantial proportion of it. It's so easy to spend other people's money, isn't it?
Martin, Newmarket, Suffolk
Shhhh..noone mention the R word.
Deep and profound. Sources of growth:-
Govt spending (gone)
Consumer Spending (gone big time)
Services Growth (e.g. housebuilders, investment banks)
Gone for a decade...
Neale Coules-Miller, Northwood,
And food and fuel price inflation as a consequence of currency devaluation is another form of tax, so no more government borrowing please Mr Darling. Get the financial house in order and start cutting back unneccessary public spending.
Paul, Coventry,