Alistair Darling defended his first Budget this morning, insisting that it would help people facing financial problems and steer Britain safely through the current global economic turmoil.

In a series of interviews, Mr Darling rejected Conservative claims that his tax hikes on alcohol and cars were bad news for ordinary consumers.

He insisted that the Budget was designed to assist those who are struggling financially, while preparing Britain to face any coming economic storm.

“We are trying to help people who are facing difficulties at the moment,” he told BBC1’s Breakfast News.

“I’m also trying in the longer term ... to take steps now to deal with problems we know we are going to face in the future.”

George Osborne, the shadow Chancellor, attacked yesterday’s package as a “bad news budget” which had “kicked Britain’s families when they’re down.”

“The cost of living is already rising fast and the Government has added to it with stealth taxes on cars and alcohol, when we believe that these kinds of taxes should be offset with tax reductions elsewhere,” he said.

Mr Darling defended individual measures within the Budget, including the so-called “showroom tax” for bigger cars.

From April 2010, there will be a new first year tax rate for new cars, ranging from zero to £950, depending on carbon emission levels. He said the measure would enable people to make “better choices” when purchasing vehicles.

The Chancellor has faced allegations that he has been over-optimistic in his assesssment of the UK’s economic prospects.

He has insisted he can still meet the tax and spending rules set by Gordon Brown when he was chancellor - although his figures depend on a strong economic bounce-back in 2009.

The Institute for Fiscal Studies said Mr Darling had delivered his package “with fingers crossed”.

But Mr Darling insisted his latest forecasts, including a downgraded prediction for economic growth of 1.75 to 2.25 per cent, were “broadly in line” with independent predictions.

He told BBC Radio 4’s Today programme that a rise in public borrowing to £43 billion - an increase of £7 billion on his Pre-Budget Report forecast - was “not surprising” given the global impact of the sub-prime mortgage crisis in the USA.

“When you get this period of uncertainty the right thing to do is to allow your tax policy and your fiscal policy to support the economy; that‘s what we‘re doing,” he said.

“I am taking a cautious view. I said yesterday, at some length, that we are going through pretty uncertain times, but I believe our projections are in line with what people are saying and most people expect our economy to grow.”

Asked if he wished he had more room to manoeuvre, he said: “We are where we are; you can only deal with the economy as you find it.”

The Chancellor defended the decision to delay a 2p increase in fuel duty which had been due on April 1 - a move that pleased motoring organisations and business leaders but infuriated environmentalists.

He said that an alcohol tax hike of six per cent above inflation from midnight on Sunday - putting 4p on a pint of beer, 3p on a litre of cider, 14p on a bottle of wine and 55p on a bottle of spirits - was “a fair and a reasonable thing to do”.

“If you look at the price of a bottle of wine now, it would have cost you more to buy it 10 year ago, if you go into a supermarket,” he said.

Conservative plans to raise duty on alcopops to fund tax cuts on other types of alcohol would push young binge drinkers to other types of drink and be in breach of EU laws, he said.

Times Recommends

• Brown targets fat cats after nationalising banks
• US shares soar on global banking rescue
• Europe follows Brown to head off meltdown