Darling commits to action on economy

Alistair Darling has pledged to take action to address weaknesses in the financial system.

In an interview this morning with the BBC the chancellor said he would take action to promote long-term economic stability but has refused to elaborate on the specifics of his plan.

During the chat on Breakfast this morning, which was screened live from the Labour conference in Manchester, he refused to comment directly as to whether the changes would include an increase in income tax but hinted that money would have to be returned to the coffers at some point.

He says: “It is not the time to take money out of the economy.

“If you borrower money you have to get the balance between taxing and spending right but you do it over a period and support the economy over the period.”

Darling also encouraged banks to behave responsibly in the current crisis and said that the government must “toughen up” the economic system.

This strengthening will likely include measures to address City bonuses but Darling says this is only one area the Financial Services Authority is looking at.