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Number 10 denies chancellor rift Number 10 denies chancellor rift
(20 minutes later)
Downing Street has denied reports of a rift with the chancellor following his grim warnings over the economy.Downing Street has denied reports of a rift with the chancellor following his grim warnings over the economy.
Number 10 said it was working closely with Mr Darling on ways to alleviate the impact of the economic downturn.Number 10 said it was working closely with Mr Darling on ways to alleviate the impact of the economic downturn.
Mr Darling told a newspaper at the weekend that Britain was facing its worst economic crisis for 60 years.Mr Darling told a newspaper at the weekend that Britain was facing its worst economic crisis for 60 years.
Meanwhile, Conservative leader David Cameron has warned large-scale attempts to refloat the mortgage market could be "quite dangerous".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, a 71% drop since last year.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.
'Close contact''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.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 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. The spokesman said Mr Darling made his own decisions on what access to give to the media, and that Number 10 had not been informed in advance about the interview. FROM THE TODAY PROGRAMME class="" href="http://news.bbc.co.uk/today/hi/default.stm">More from Today programme
FROM THE TODAY PROGRAMME More from Today programme
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."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".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."
'Careful but responsible''Careful but responsible'
Ahead of the expected government announcement, Mr Cameron said he wanted to see help with stamp duty and for those facing repossession.Ahead of the expected government announcement, Mr Cameron said he wanted to see help with stamp duty and for those facing repossession.
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 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.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 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.
A group of MPs has also called for a windfall tax to be levied against energy companies who have announced huge profits in recent months.
Asked about this, the Downing Street spokesman said: "We want to continue to work in a co-operative way with energy companies, but nothing is ruled out."