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Britain in grave danger of financial collapse, says Ken Clarke
Justice secretary warns UK is 'not out of the woods yet' – putting him in conflict with David Cameron as spending review approacheslink
Ken Clarke, who today said the UK 'is not out of the woods yet'. Photograph: Matt Cardy/Getty Images Ken Clarke warned today that the UK economy was "in grave danger of financial collapse".
The justice secretary's views put him in direct conflict with David Cameron, who argued as recently as 2 October that Britain was "out of the danger zone". Clarke said today the UK is "not out of the woods yet".
Clarke's comments come just six days before the coalition government's massive spending cuts are announced in the comprehensive spending review. The government argues that the cuts are necessary to restore the economy to health; opponents claim they will push the UK into a double-dip recession.
The issue is politically crucial and appears to have provoked some disagreement between Tories and Liberal Democrats in the government.
Chris Huhne, the Lib Dem energy secretary, has suggested the cuts could be scaled back if the economy worsens, saying he was not "lashed to the mast with a particular set of numbers".
Discussing his planned jail reforms at the Prison Governors' Association annual conference in Buxton, Derbyshire, today, Clarke said: "I want to be clear, so far as all these reforms go, we don't have any money ... Brace yourselves for quite a lot of change.
"These are difficult circumstances. The events of the next 12 months are going to be quite dramatic."
He said the comprehensive spending review was "quite the most dramatic in living memory" and added: "There's no one alive who remembers a crisis of this kind. We're in grave danger of financial collapse. We're not out of the woods yet. Whatever I manage to get, it won't be what you like."
Speaking to the Observer before the Tory conference earlier this month, Clarke said "I do not rule out the risk of a double-dip recession caused by some fresh wave of global fear and crisis".
Optimism became one of the battlegrounds of the party conference season, with new Labour leader Ed Miliband claiming it as his key value and George Osborne ending his conference speech saying "Over the horizon is a Britain that pays its way in the world, a Britain that is a beacon for liberty and justice ... "
But Clarke told the Observer: "I'm at the more pessimistic end. I'm not sunnily optimistic about where the western economy is going."
The justice secretary's views put him in direct conflict with David Cameron, who argued as recently as 2 October that Britain was "out of the danger zone". Clarke said today the UK is "not out of the woods yet".
Clarke's comments come just six days before the coalition government's massive spending cuts are announced in the comprehensive spending review. The government argues that the cuts are necessary to restore the economy to health; opponents claim they will push the UK into a double-dip recession.
The issue is politically crucial and appears to have provoked some disagreement between Tories and Liberal Democrats in the government.
Chris Huhne, the Lib Dem energy secretary, has suggested the cuts could be scaled back if the economy worsens, saying he was not "lashed to the mast with a particular set of numbers".
Discussing his planned jail reforms at the Prison Governors' Association annual conference in Buxton, Derbyshire, today, Clarke said: "I want to be clear, so far as all these reforms go, we don't have any money ... Brace yourselves for quite a lot of change.
"These are difficult circumstances. The events of the next 12 months are going to be quite dramatic."
He said the comprehensive spending review was "quite the most dramatic in living memory" and added: "There's no one alive who remembers a crisis of this kind. We're in grave danger of financial collapse. We're not out of the woods yet. Whatever I manage to get, it won't be what you like."
Speaking to the Observer before the Tory conference earlier this month, Clarke said "I do not rule out the risk of a double-dip recession caused by some fresh wave of global fear and crisis".
Optimism became one of the battlegrounds of the party conference season, with new Labour leader Ed Miliband claiming it as his key value and George Osborne ending his conference speech saying "Over the horizon is a Britain that pays its way in the world, a Britain that is a beacon for liberty and justice ... "
But Clarke told the Observer: "I'm at the more pessimistic end. I'm not sunnily optimistic about where the western economy is going."
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