Chancellor defends economy target

Speaking before the Treasury Committee, he reiterated his view the UK economy was well placed to cope with the current global economy turbulence.

"Our economy remains fundamentally strong," said Mr Darling.

He said this week's rescue purchase of ailing US bank Bear Stearns had not changed his targets for the UK economy.

In the Budget, Mr Darling said he expected the UK economy to grow between 1.75% and 2.25% in the current financial year, a 0.25% decline on his previous estimate.

'Uncertain time'

"I am very conscious of the fact we are going through a period of considerably uncertainty, particularly in the financial markets," Mr Darling told the committee.

"I think that the forecasts we have set out are reasonable and we have taken account of the uncertainty"
Alistair Darling

He said it was up to central governments and financial authorities to continue to do all they could to ensure stability "in what is a very uncertain time".

Turning to the near collapse of Bear Stearns, Mr Darling said US authorities were able to quickly intervene with emergency funding before its sale to rival JP Morgan Chase.

Mr Darling added that while the rate of economic growth was slowing, the UK remained well placed to deal with the turbulence centred on the financial markets.

"I think that the forecasts we have set out are reasonable and we have taken account of the uncertainty," he said.

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