The pound also tumbled by more than 1 percent against thedollar on concerns about the viability of the public finances. GLOBAL SLOWDOWN Darling predicted the economy would shrink by 3.5 percentthis year, the fastest rate of contraction since 1945. Manycountries are in the same boat as a global credit crunch hasravaged the world economy and cost millions of jobs. The International Monetary Fund was more pessimistic,forecasting on Wednesday that Britain would contract by 4.1percent this year, and in stark contrast to Darling’s forecastof a quick return to growth, drop a further 0.4 percent in 2010. It also predicted a 5.6 percent slide for the German economythis year and 6.2 percent in Japan this year. With tax revenues and collapsing and social securitypayments soaring — Britain’s unemployment rate is at a 11-yearhigh — Darling predicted borrowing would total 175 billionpounds, more than 12 percent of GDP, this fiscal year and 173billion pounds next year.

The combined total is 125 billion pounds higher than hepredicted just five months ago. The day’s big surprise, however, was the decision to raisethe top rate of tax for people earning over 150,000 pounds to 50percent from 40 percent, as of next April, shortly before theexpected date of the next election. In addition, those earning over 100,000 pounds will losetheir tax free allowances and will also lose the higher rate ofrelief they get on pension contributions. But the revenues these measures will raise is small andanalysts questioned whether the moves might be morepolitically-inspire as a way of creating a dividing line betweenLabour and the centre-right opposition Conservatives.

Conservative leader David Cameron harked back to the yearsof effort by Labour to build a reputation for economiccompetence — something it was perceived to lack in the past. “As of today any claim they have ever made to economiccompetence is dead, over, finished,” Cameron said. “He isplanning to borrow 348 billion pounds over the next two years.That is more than every previous government put together.” (additional reporting by Luke Baker, Christina Fincher, FionaShaikh, David Milliken, Keith Weir, Kate Kelland, FrankPrenesti, Adrian Croft; editing by Mike Peacock) Bonds Japan. Not since Bill Belichick took over for Pete Carroll in New England has there been an offseason as busy as the 2008 Miami Dolphins’ free agency and draft spectacular.Much has been written about the speed and certitude of Miami’s new regime.