Ken Clarke: UK faces financial crisis if Labour wins election

By James Kirkup, Political Correspondent Published: 4:27PM GMT 02 March 2010

Mr Clarke pronounced that if Labour emerged as the largest celebration gilt yields would soar and the UK?s credit rating would be "seriously put at risk".

The Conservative shade commercial operation cabinet member launched an no holds barred conflict on Gordon Browns mercantile credit as the Tories shifted their choosing plan on the economy.

"Voters contingency not elect themselves in to a monetary crisis" by returning Labour, Mr Clarke warned.

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Labour responded by accusing the Conservative of an "unpatriotic" try to speak down the pound.

After multiform polls showed Labour squeezing the Tory lead to as small as dual commission points, the Conservatives are putting less importance on their own plans and some-more on the "economic risks" of Labour narrowly winning the election.

Mr Clarke on Tuesday spoke to a City assembly accompanied by David Cameron, the Conservative leader, and George Osborne, the shade chancellor, where all 3 steady the message: "Britain cannot means an additional five years of Gordon Brown".

The bruise has tumbled opposite the dollar this week as general investors take trepidation at the flourishing awaiting of the choosing finale in a hung council and a minority supervision incompetent to cut spending and residence the outrageous open deficit.

Mr Clarke pronounced the transformation in the markets showed how shaken general investors are about the prospects about a hung parliament. "If investors dont hold the new inaugurated supervision has the domestic will to understanding with the mercantile issues, they will direct most higher seductiveness rates," he said.

A series of polls have referred to that Labour could nonetheless arise from the choosing as the largest celebration in the Commons but short of a operative majority.

Mr Clarke pronounced that would move about a vital predicament of confidence, with investors perfectionist most higher rates of seductiveness to lend to the UK by shopping gilts, British Government bonds.

"The last thing I wish is for the supervision of this nation to be left at the forgiveness of the down payment markets," Mr Clarke. "They will direct most higher seductiveness rates prior to they lend [Britain] any some-more money."

Mr Clarke, the last Conservative to offer as chancellor, pronounced that if Labour emerged as the largest celebration gilt yields would soar and the UKs credit rating would be "seriously put at risk".

The result, he said, would be most higher seductiveness rates opposite the economy and "mortgage rates would climb for millions of families".

Mr Clarke pronounced that a new Tory supervision would additionally come underneath heated vigour from the markets to set out fast transparent plans to residence the deficit, that is foresee to reach �178 billion this year.

Mr Clarke said: "Weve got 50 days to give a little certainty to the creditors that we are able of putting in to use the integrity to get the constructional necessity mostly out of the approach in the initial council and that we are creditworthy for the serve financial we will need."

Liam Byrne, the arch cabinet member to the Treasury, pronounced Mr Clarke was on purpose articulate down the UK economy.

He said: "We know they"re pang a loss of certainty newly but perplexing win it behind by undermining certainty in the British economy is forward and irresponsible.

"It"s unfortunate politics, forward economics and about as unpatriotic as it gets."

Rejecting that criticism, Mr Clarke pronounced that Labour were the genuine hazard to the bruise and mercantile stability. "It"s usually the awaiting of a Conservative feat that has essentially been keeping down seductiveness rates and holding up sterling," he said.