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Cameron warns on mortgage plans Number 10 denies chancellor rift
(about 2 hours later)
Large scale attempts to refloat the mortgage market could be "quite dangerous", Conservative leader David Cameron has warned. Downing Street has denied reports of a rift with the chancellor following his grim warnings over the economy.
Ahead of an expected government announcement on Tuesday, Mr Cameron said he wanted to see help with stamp duty and for those facing repossession. Number 10 said it was working closely with Mr Darling on ways to alleviate the impact of the economic downturn.
Mr Cameron also described Chancellor Alistair Darling's grim warning about the economy as "extraordinary". Mr Darling told a newspaper at the weekend that Britain was facing its worst economic crisis for 60 years.
The number of new mortgages has fallen by 71% since last year, figures show. Meanwhile, Conservative leader David Cameron has warned large-scale attempts to refloat the mortgage market could be "quite dangerous".
The Bank of England figures show the number of new mortgages approved for home buyers fell in July to just 33,000. The Bank of England figures show the number of new mortgages approved for home buyers fell in July to just 33,000, a 71% drop since last year.
It's an extraordinary situation when you've got a chancellor of the exchequer effectively talking the economy right down David Cameron class="" href="/1/hi/business/7591421.stm">Mortgage approvals hit fresh low 'Close contact'
Mr Darling's comments came ahead of what is expected to be a series of economic measures widely seen as a "relaunch" for Gordon Brown's prime ministership.
The spokesman said: "The prime minister and the chancellor are working very closely together and they are in close contact about dealing with the economic challenges we face."
The spokesman suggested that Number 10 had not been informed in advance about the interview given by Mr Darling.
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He said it would expect to be informed if the interview related to serious policy issues but this interview was for "a background profile piece."
Mr Cameron described Mr Darling's warning about the economy as "extraordinary".
The Tory leader told BBC Radio 4's Today: "I think, right as we stand at the moment, I think it is too difficult to say whether this is the worst situation for 60 years.The Tory leader told BBC Radio 4's Today: "I think, right as we stand at the moment, I think it is too difficult to say whether this is the worst situation for 60 years.
"I think it's extraordinary that the chancellor said it, because - remember - a chancellor of the exchequer has got to think, not only 'I must tell the truth at all times' but also 'I must use my words carefully, so that I don't actually create a situation, that's even worse, that creates a crisis of confidence'."I think it's extraordinary that the chancellor said it, because - remember - a chancellor of the exchequer has got to think, not only 'I must tell the truth at all times' but also 'I must use my words carefully, so that I don't actually create a situation, that's even worse, that creates a crisis of confidence'.
"It's an extraordinary situation when you've got a chancellor of the exchequer effectively talking the economy right down.""It's an extraordinary situation when you've got a chancellor of the exchequer effectively talking the economy right down."
'Sceptical' 'Careful but responsible'
Mr Darling's comments in an interview published at the weekend came ahead of what is expected to be a series of economic measures widely seen as a "relaunch" for Gordon Brown's prime ministership. Ahead of the expected government announcement, Mr Cameron said he wanted to see help with stamp duty and for those facing repossession.
It is widely thought that measures to support the housing market will be outlined first - and Mr Cameron said the Tories would take a "sceptical, careful but responsible" look at the package of measures. Mr Darling's assertion of independence, just like that of David Miliband in July, now makes the cost of a reshuffle that much higher for Gordon Brown Nick RobinsonBBC political editor class="" href="http://www.bbc.co.uk/blogs/nickrobinson/2008/09/darlings_indisc.html">Read Nick's blog in full It is widely thought that measures to support the housing market will be outlined first - and Mr Cameron said the Tories would take a "sceptical, careful but responsible" look at the package of measures.
He said that the part of the mortgage market which had suffered the worst problems was where people wanted to borrow 90% or more of the property's value.He said that the part of the mortgage market which had suffered the worst problems was where people wanted to borrow 90% or more of the property's value.
He questioned whether it was advisable to kick-start this part of the mortgage market while there are predictions of further property price falls.He questioned whether it was advisable to kick-start this part of the mortgage market while there are predictions of further property price falls.
Mr Cameron's comments came as the Royal Institution of Chartered Surveyors said the government needed to take "significant and decisive action" to help revitalise the housing market, with housing sales now at a 30-year low.Mr Cameron's comments came as the Royal Institution of Chartered Surveyors said the government needed to take "significant and decisive action" to help revitalise the housing market, with housing sales now at a 30-year low.