Darling in grimmest forecast yet

Alistair Darling has given his most pessimistic assessment yet of Britain's economic prospects.

In newspaper interview, the Chancellor warns the global economy is facing the worst conditions for 60 years and the downturn will be "more profound and long-lasting" than expected.

Mr Darling added the Government faces its toughest test yet, saying: "This coming 12 months will be the most difficult 12 months the Labour Party has had in a generation, quite frankly.

"We've got to rediscover that zeal which won three elections, and that is a huge problem for us at the moment. People are p*ed off with us.

"We really have to make our minds up; are we ready to try and persuade this country to support us for another term? Because the next 12 months are critical. It's still there to play for."

The Chancellor played down the prospects of an early reshuffle by Gordon Brown, and speculation that he could lose his job when the Prime Minister does shake up his team.

He said: "You can't be chopping and changing people that often. I mean, undoubtedly at some stage before the end of the Parliament he will want to do a reshuffle, but I'm not expecting one imminently."

Asked whether Mr Brown can communicate Labour's mission effectively, he insisted: "Yes, I do think he can. I do think he will."

Mr Darling spoke out after David Blanchflower, a member of the Bank of England's Monetary Policy Committee, suggested that unemployment could rise to two million as construction workers and banks shed jobs.

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