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LONDON: Britain's economic downturn is worse than previously thought and there is no extra money available for public spending, finance minister Alistair Darling said in an interview published on Saturday.
The Chancellor of the Exchequer also told The Times newspaper that taxpayers were at the limit of what they were willing to pay, a day after official data showed a record deficit in Britain's public finances, and reports that the government might bend its budget rules.
"At Christmas, most people remained hopeful there would be an improvement by the autumn," Darling 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 added: "We are going through a very, very difficult time."
Darling said that the economic picture was "at the bottom end of my range" set out in his annual budget in March.
On public spending, the finance minister said he has 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 Office for National Statistics said on Friday that public sector debt at the end of June was at 38.3 percent of GDP, but increased to 44.2 percent when the impact of nationalised mortgage lender Northern Rock is included.
Public finances were at a record deficit of 15.5 billion pounds (19.5 billion euros, 30.9 billion dollars) in June compared with the same time last year, well over market expectations of a 12.3-billion-pound deficit.
The Financial Times, meanwhile, reported that finance ministry officials were working on plans to revise the rules to allow for increased borrowing without raising taxes amid the current economic downturn.
One of the fiscal rules sets a government borrowing limit of 40 percent of national income.
In The Times interview, Darling played down the report and reiterated comments made Friday that the Treasury constantly reviews its fiscal rules.
He noted, however, that while voters will "pay their fair share ... you can't push that".
"My judgment 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."
- AFP/so
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