Could we get deflation and prolonged recession?

In the moneymarketing.co.uk edition for 19th March 2009 Brian Tora again does an excellent summary of the current financial situation. He muses about the 1970s and the problems suffered by the UK economy then. Tora concludes that "the risk of being out of the market is rising". Before that, he considers that gilts look vulnerable to a correction.
Since then we have had a gilts auction uncovered, which apparently the bond market taking a dim view of HM Government's borrowing plans. We could get a tough budget from Chancellor Alistair Darling, if he ignores his boss Premier Gordon Brown.
The government wants some voter friendly measures in the budget, which is happening late this year. Chancellor Darling will have to come up with a plan to get the public finances on track.