Labour attacks Tories for 'talking down the pound' after sterling falls

Labour today accused the Tories of seeking to "talk down the pound" after Ken Clarke warned Britain is still in crisis.

Liam Byrne, chief secretary to the Treasury, attacked David Cameron, shadow chancellor George Osborne and shadow business secretary Mr Clarke after they derided Gordon Brown's economic record in speeches to business leaders in Canary Wharf.

After sterling plunged to a 10-month low against the dollar yesterday, Mr Clarke claimed Britain could "not afford" another five years of Mr Brown.

But Mr Byrne said: "Today the Tories showed they were willing to hurt Britain to help themselves.

"In an act of desperation, they walked into the City and tried to talk down the pound. We know they're suffering a loss of confidence but trying to win it back by undermining confidence in the economy is reckless. It's desperate politics and about as unpatriotic as it gets."