Cameron: Hung parliament bad for economy

By Sasjkia Otto

David Cameron today warned a hung parliament could hurt the Britain’s credit rating.

A coalition government could put Britain’s credit rating at risk, put pressure on the currency and leave home owners and business facing bigger bills, Mr Cameron told The Times today.

“It raises those risks,” he said. “It’s miserable for people because you could see mortgage rates go up and business rates go up.”

Kenneth Clarke, shadow business secretary, added Britain could have to seek help from the Monetary Fund as a result.

A minority government would play to the worst instincts of MPs, said Mr Cameron.

“It’s great for politicians. They can endlessly haggle and bicker and scheme and swap jobs and win pet projects and get funding for this thing or that thing and have a wonderful time. They would be in the trough.”

Labour officials said the Tories were resorting to “desperate scare tactics”.

Mr Cameron said he was willing to make a post-election deal with Mr Clegg, but ruled out Liberal Democrat policies to scrap the Trident replacement programme, offer amnesty to illegal immigrants, keep some burglars out of prison and leave health spending unprotected.

He also refused to accept the inevitability of voting reform in a hung parliament.