Darling says tax cuts will help in slowdown

LONDON - Chancellor Alistair Darling said on Wednesday that the global credit crunch was slowing down the economy but income tax cuts announced this week would help many Britons weather the storm.

Darling told BBC radio his latest income tax cut was aimed at both middle- and low-income earners, to help them deal with rising fuel and food costs as well as taking the sting out of the abolition of the 10 pence tax rate.

"We are maintaining a stable economy," he said.

Darling added that the government was still meeting its fiscal rules because government debt levels were historically low and a previously strong economy meant he was able to borrow to invest over the economic cycle.