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UPDATE 1-UK's Darling confirms budget to take place in March

Published 02/12/2010, 08:20 AM
Updated 02/12/2010, 08:24 AM

LONDON, Feb 12 (Reuters) - British finance minister Alistair Darling confirmed on Friday that he would deliver his next budget in March, and that it would focus on growth and reiterate government plans to halve the budget deficit over four years.

"In the Budget next month, my main focus will be growth," he said, according to the text of a speech released by the government and to be delivered in Edinburgh later in the day.

"We have a credible plan to cut the deficit at a sensible pace -- to halve the deficit over four years, and see debt, as a share of the economy, falling by the end of the next Parliament," he continued.

Opposition Conservative politicians and some financial market analysts have criticised Darling for not planning to cut Britain's budget deficit faster, as it is forecast to rise to over 12.6 percent of GDP during the current tax year.

How to balance the budget is a key political dividing line ahead of a national election expected to take place on May 6, and Darling said his deficit reduction plans to date were based on taxing the rich.

"It is the most ambitious deficit reduction plan of any G7 country. It is based on fair tax rises, with the biggest burden falling on those who can most afford it. The case for maintaining public spending until recovery is established is overwhelming," he said.

(Editing by Ron Askew)

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