The Financial Times quotes "government insiders" as saying that such a scheme would be "a centrepiece" of the Budget initiatives.

Medium-risk companies are thought to be the main target of the plan, which could offer guarantees for companies that have had cover reduced but not withdrawn.

Nicholas Mockett, a partner at Europa Partners, said that such a scheme would put "a massive risk onto the taxpayer" as claims are likely to increase as the recession continues.

A HM Treasury spokesperson said that all decisions would be kept under review by the chancellor as part of the Budget process and any announcements will be made on 22 April.

In the print industry, economic conditions have reduced the availability of credit insurance, and in some cases credit insurance is being withdrawn as insurance firms start to view the sector as too risky.

In January, print industry experts warned that this is endangering print companies as insurers become increasingly risk averse.

The warning comes after the tightening of credit conditions following concerns over debt levels.

It follows a letter sent by the BPIF to chancellor Alistair Darling, which called on him to "prepare the ground for a more balanced economy" ahead of the forthcoming budget.

It included problems posed by the withdrawal of credit insurance form the print sector.

It said: "The need to bring forward measures to underwrite trade credit insurance is becoming increasingly urgent", although it did not specify which measures.

Darling will make his Budget statement to the House of Commons on 22 April 2009 at 12:30pm. It can be followed live at printweek.com.