Gordon Brown has warned that the British economy is not yet out of the economic storm it has endured, while announcing a date for the next Budget.
The Budget announcement will be held on 24 March, and the Prime Minister made clear today that it will include pay cuts for public sector employees. The government has been under pressure to rein in spending in an effort to reduce the deficit in the public finances.
But Mr Brown today cautioned against cutting wages and other spending "recklessly and rapidly", insisting that this would risk pushing the economy back into recession - a viewpoint that is supported by opposition politicians and many economic analysts.
The Prime Minister also warned that the UK faces the prospect of "bumps in the road" on the way to recovery. Some analysts expect to see a second contraction this year or next, although the likelihood of this seems to have dissipated.
The Budget announcement will also mark the point at which the general election campaign begins in earnest. An election is expected on 6 May.
