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| Version 0 | Version 1 |
|---|---|
| Osborne fears sterling collapse | Osborne fears sterling collapse |
| (about 5 hours later) | |
| Gordon Brown's willingness to borrow his way out of trouble could lead to the collapse of sterling, shadow chancellor George Osborne has warned. | Gordon Brown's willingness to borrow his way out of trouble could lead to the collapse of sterling, shadow chancellor George Osborne has warned. |
| In an interview with the Times, he accused the prime minister of being "deeply irresponsible" and suggested he "doesn't care" how much he borrows. | In an interview with the Times, he accused the prime minister of being "deeply irresponsible" and suggested he "doesn't care" how much he borrows. |
| Sterling has fallen sharply in recent weeks amid fears about a UK recession. | Sterling has fallen sharply in recent weeks amid fears about a UK recession. |
| A Labour spokesman said Mr Osborne was being "irresponsible" by talking down the economy. | A Labour spokesman said Mr Osborne was being "irresponsible" by talking down the economy. |
| 13-year low | 13-year low |
| On Friday, the pound slipped to a 13-year low against a basket of other currencies. | On Friday, the pound slipped to a 13-year low against a basket of other currencies. |
| It hovered near a six-and-a half year low of $1.4555 and traded at 85.40 pence against the euro, also close to a record low of 86.62 pence. | It hovered near a six-and-a half year low of $1.4555 and traded at 85.40 pence against the euro, also close to a record low of 86.62 pence. |
| Mr Osborne claims the more the prime minister borrows, the less attractive the currency will become. | Mr Osborne claims the more the prime minister borrows, the less attractive the currency will become. |
| A panicking George Osborne is trying to talk down the economy in a desperate last throw of the dice to save his career Labour spokesman | A panicking George Osborne is trying to talk down the economy in a desperate last throw of the dice to save his career Labour spokesman |
| He said: "We are in danger, if the government is not careful, of having a proper sterling collapse, a run on the pound. | He said: "We are in danger, if the government is not careful, of having a proper sterling collapse, a run on the pound. |
| "The danger of a run on the pound... is that it pushes up long-term interest rates, which is a huge burden on the economy. | "The danger of a run on the pound... is that it pushes up long-term interest rates, which is a huge burden on the economy. |
| "The more you borrow as a government the more you have to sell that debt and the less attractive your currency seems." | "The more you borrow as a government the more you have to sell that debt and the less attractive your currency seems." |
| He went on to label Mr Brown's tactic as a "scorched-earth policy", which a future Conservative government would have to clear up. | He went on to label Mr Brown's tactic as a "scorched-earth policy", which a future Conservative government would have to clear up. |
| "His view is he probably won't win the next election. The Tories can clear this mess up after I've gone," he said. | "His view is he probably won't win the next election. The Tories can clear this mess up after I've gone," he said. |
| Internal criticism | Internal criticism |
| A Labour spokesman said: "At their conference in October, the Tory leadership said they would support the government in the difficult decisions we had to take to keep the economy on track. | A Labour spokesman said: "At their conference in October, the Tory leadership said they would support the government in the difficult decisions we had to take to keep the economy on track. |
| "Just a few weeks later, a panicking George Osborne is trying to talk down the economy in a desperate last throw of the dice to save his career." | "Just a few weeks later, a panicking George Osborne is trying to talk down the economy in a desperate last throw of the dice to save his career." |
| Mr Osborne is not only facing criticism from the government. | Mr Osborne is not only facing criticism from the government. |
| The former Conservative treasurer Lord Kalms has told the BBC that the former shadow home secretary David Davis would be more appropriate as shadow chancellor. | |
| BBC political correspondent Iain Watson said there had been unease among some Conservatives about Mr Osborne's performance during the credit crunch but up until Lord Kalms, most of the comments had been off the record. | BBC political correspondent Iain Watson said there had been unease among some Conservatives about Mr Osborne's performance during the credit crunch but up until Lord Kalms, most of the comments had been off the record. |
| Last month, Mr Osborne was embroiled in the so-called Corfu yacht row. | Last month, Mr Osborne was embroiled in the so-called Corfu yacht row. |
| He admitted he "made a mistake" by meeting Russian billionaire Oleg Deripaska several times while on holiday in Corfu in the summer. | He admitted he "made a mistake" by meeting Russian billionaire Oleg Deripaska several times while on holiday in Corfu in the summer. |
| But he denied claims he tried to solicit a £50,000 donation for the Conservative Party. | But he denied claims he tried to solicit a £50,000 donation for the Conservative Party. |