The day New Labour died: Brown ditches historic pledge not to raise income tax in £1TRILLION gamble to save economy

Alistair Darling defended his high tax, high borrowing £20billion giveaway today amid Tory claims it will ultimately make anyone earning more than £19,000 worse off.

Old Labour came roaring back in his mini-Budget thanks to plans to hit the middle classes and target the rich if Labour wins another term. But today, the Chancellor insisted it had not torn up the New Labour project and that only workers on more than £40,000 would end up losing out.

'People earning less than £40,000 won't be paying more. The burden really is falling on people on higher incomes,' he said.

Borrowing will rocket to a record £300billion over five years to produce a national debt of more than £1trillion under the Government plans.The success of the drastic action depends on rose-tinted forecasts that the recession will be over by next autumn although experts expert it to last far longer. (Source: Daily Mail)