Darling to admit recession is worse than he forecast

Alistair Darling will admit in next month’s pre-Budget report that the recession has been much deeper than he forecast in March, the Financial Times has learnt.

The chancellor is expected to say that the economy contracted by 4.75 per cent in 2009, shrinking at least one percentage point more than forecast in the Budget. But he will also say that the UK has at last turned a corner and is on the road to recovery, ahead of a probable general election in May.