The levels of debt announced by Alistair Darling in his Budget are higher than suggested, it is claimed.

Michael Baxter, economist at Defaqto, says some respite may be seen if the interest on repaying the debt is low.

"What really counts is not necessarily the level of debt but the cost of repaying the debt," he continues.

Mr Baxter believes that there are various economic predictions based on Mr Darling’s own ideas, with not all of them spelling good news for the country’s economy and its people.

"The chances are he will be wrong and that the debt will be quite a lot higher than 79 per cent of gross domestic product (GDP) and that will be quite worrying," he adds.

Alistair Darling admitted that the UK debt could peak at 79 per cent of GDP in 2013-14 and predicted that the economy will begin to recover by the end of this year.

This statement has been contradicted by a number of economists, including the International Monetary Fund.