Recession 'is even worse than feared': Chancellor predicts steepest slump ever

The recession is proving even deeper than feared, Alistair Darling will admit in next month's Pre-Budget report.

The Chancellor will forecast the steepest annual slump since modern records began.

But he is likely to put a brave face on the outlook by declaring that Britain has finally returned to growth in the fourth quarter of the year.

Last night Treasury sources indicated that Mr Darling will sharply downgrade his economic predictions in the December 9 statement, forecasting a slump of 4.75 per cent for 2009. (more)