Alistair Darling will increase duties on wines and spirits next week as he presents a Budget to stave off recession.

Against a backdrop of worsening conditions in the US economy and renewed anxiety in the City, the Chancellor of the Exchequer told The Times yesterday that he would “support the economy in what are undoubtedly difficult times”.

Economists expect Mr Darling to cut his growth forecast for 2008 by a quarter of 1 per cent on Wednesday. They also predict sharply reduced tax receipts in the year ahead and increased borrowing.

But the Chancellor’s repeated insistence that he would “support the economy” suggested that any tax increases announced on Wednesday, particularly on high-emission cars and other green targets, are likely to be delayed for at least a year.

America’s central bank said that it would make available as much as $200 billion in emergency funding for the banking industry in a further sign that the US is facing the possibility of a serious downturn.

Julian Jessop, from the consultants Capital Economics, said that rising US unemployment was likely to be the “tip of the iceberg”. He added: “One thing history teaches us is that when an economy stalls and drops into recession things get bad very quickly.”

Mr Darling told The Times that his main objectives were to ensure stability and to prepare the country for the future. He said tackling climate change was one of the “huge challenges” ahead.

He is expected to avoid a fiscal tightening by allowing borrowing to rise, but will need more income from taxes over the longer term to keep within his financial rules. Delaying taxes would be designed to reassure the markets.

The Chancellor insisted that the British economy was better placed than most to handle the uncertain times. He said that there had been two recessions under the Conservative Government, but added: “I am optimistic we will get through these difficulties because of the strength of our position.

"Everybody is affected by what is happening in America. But I am confident we will get through this. I have no doubt about that. But it does mean you have to stick to you guns. You have to ensure you do not do anything that takes risks.”

Mr Darling stood by his changes to capital gains tax and the imposition of a charge on non-domiciles resident in this country, but hinted that they could have been handled better. He suggested that future changes in banking supervision rules would be “proportionate” and promised to help the City by trying to break down trade barriers. “I am going to China in April to talk about encouraging new exchanges between China and companies in the financial services industry,” he said.

His remarks ensure a Budget clash over alcohol duties and the ways of tackling binge drinking.

The Conservatives unveiled plans for big tax rises on alcopops and strong beers while cutting duty on lower-strength drinks to boost sales

George Osborne, the Shadow Chancellor, said that the package did not affect the vast majority of responsible drinkers. Mr Darling dismissed the plan as a gimmick.

Sales of alcopops had plummeted so it was difficult to see how the Conservatives could raise extra money from them, he said.

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