BUDGET 2008: Chancellor to “turn borrowing into wealth creation”

Chancellor Darling insists that public spending will “turn borrowing into wealth creation.”

He says that spending on health, transport and international aid has doubled, with public services spending rising by 3.7% between 1997 and 2007.

He adds that by 2010 Britain’s economy will have experienced the largest sustained expenditures on investment in public services in recent history.

Darling says he will bolster this by rising social spending contributions by energy firms from £50m to £150m.

He has pledged to invest over £2bn additional spending on defense and military equipment.