Alistair Darling's first budget on March 12

British finance minister Alistair Darling will present his first budget on March 12, the Treasury said yesterday.

Mr Darling has already warned that this year will be a challenging year for policymakers as a slowdown in the economy is compounded by the global credit squeeze.

In his pre-budget report in October, Mr Darling forecast government borrowing would be £38 billion this fiscal year but recent disappointing public finance figures means most analysts expect an overshoot.

Mr Darling may also be compelled to revised up borrowing figures for the coming years.

The government's two to 2.5 per cent growth forecast for this year is also at the optimistic end of City expectations and many analysts are sceptical whether the economy will bounce back as strongly next year as the Treasury expects.