Ken Clarke adds his heavyweight backing to George Osborne

During the course of Saturday, a number of shadow cabinet figures and others made clear their support for shadow chancellor George Osborne over his outspoken attack on the Government in the Times, in which he stated that too much government borrowing risked a run on the pound.

Perhaps most significantly, the former Chancellor Ken Clarke has now added his voice to unquestionably back Mr Osborne's position - and to pour scorn on the suggestion coming from political opponents that it was breaking a convention for him to speak out in this way.

Here's what Ken Clarke has had to say:

"I have never heard of any convention that Opposition politicians - including the Shadow Chancellor - cannot comment on Sterling. The foreign exchange markets had already made their minds up about the pound, regardless of any political comment.

"Gordon Brown reminds me of Harold Wilson blaming the weakness of sterling on people 'selling the pound short' when it had already been weakened by his government's own policies. The pound has dropped more than 30% from its peak because of concern in the markets about the scale of government borrowing.

"George Osborne has made a perfectly sensible comment that in any analysis of the situation, one must have regard to the possible problems of selling more government bonds, or of a possible fall in the value of sterling if government policy becomes too reckless."

Comments

[somerset rebel]

Two things shine through in this:

* Of course Osborne is right about the impact of borrowing on the future value of sterling - even a half-wit should be able to see that...if not Brown, Darling or strangely Kalms!

* The Conservatives should stand alongside him on this one - or we will end up being buliied into never saying anything about anything. Clarke is "right on the money" about this being a non-existent convention. That idea is a pure smoke screen.

[Doug]

I'm happy to say here that I support Osborne 100%.

Let the stupid Sunday Times reporter pick up my comment for publication, an actual Conservative member as opposed to a UKIP member they quoted.

The media fell hook, line and sinker for this 'convention' nonsense. It seems they are back to swallowing Brown and Mandelson's spin uncritically. Someone with access to old TV footage should look up Brown in opposition commenting on Sterling. Twerp.

I hope other Conservative supporters will leave comments of support for Osborne.

[Hawkeye]

The real reason that Labour is so upset with Osbourne is that he has just "shot their fox". This row is getting the fact that excessive borrowing causes real damage just weeks ahead of the Pre Budget Report where the solution to our woes is to increase borrowing further.

Osbourne needs Clarke on his team. Together they would make a formidable force. The strategy is

• Get out and about more. Get on telly, radio and newspapers
• Savage the Labour plan. Point out the effects on Sterling
• Be bold. Say what the tories would do. Do not shy away from saying it would be painful. Blame Brown for the pain - it is his fault and that needs pointing out.
• Drop soundbites
• Get Clarke and Osbourne to work together, tell them that the winning of the next election is their job

It is all about the economy now. NOTHING else matters.

[resident leftie]

I love the subtext of this post - Osborne needs heavyweight backing because he is lightweight!

[judith]

Yes Doug. I back Osbourne.How dare labour criticise him for doing his job which is more than they have been doing- how many times have they balanced their books whilst in power! They dont know the meaning of responsible behaviour.Anyone would think they are in opposition.They are worried by Osbourne telling the truth-thats why he must stay where he is.Never fear he will always have advice from Clarke and co.

[Jake]

Depending on the circumstances overborrowing can sometimes be accomplished with only a minor weakening of a currency. Witness the dollar in recent years. In the end though the currency markets will crystallise the situation for you - either rein back or,if you wont stop, face a run on your curency.

Brown is explicit in wanting to "borrow and spend". He knows he risks a run on the pound if he does it alone and is therefore running around trying to get other countries to be complicit in a multicountry package of overborrowing and printing of money.

Its a bit of a wheeze. It might work - to an extent - but I wouldn't bank on notoriously sceptical currency markets seeing things his way.

[Hawkeye]

Resident Leftie said "I love the subtext of this post - Osborne needs heavyweight backing because he is lightweight!"

No - he needs the "heavyweights" to play their part. What's the point of letting talented people with a proven record sit idly by when they could be sticking it to "The Comrades"?

In a major battle, you commit your reserves.....

[pp]

I'm with hawkeye on this - the conservatives have substantial resources at their disposal and are right to use them.

Labour can't have arguments about who should run the economy -- Brown is their only candidate!! - like a cukoo he spent a decade disposing of any competing talent (I use the word talent with caution!) - hence having to resurrect some of the blair old guard.

Brown wants a 'one on one' fight because he knows he is Labours only resource. But the tories don't need to play by his rules - they are right to use their best team - as required.