FT.com / World - Darling warns credit squeeze ‘will hit UK’

FT.com / World - Darling warns credit squeeze ‘will hit UK’: "Darling warns credit squeeze ‘will hit UK’ By George Parker and Chris Giles in London Published: October 4 2007 22:01 | Last updated: October 5 2007 12:03 Britain’s economy will be hit by the global credit squeeze, forcing the government to downgrade its growth forecasts ahead of a possible general election, the chancellor of the exchequer admitted on Thursday. Alistair Darling told the Financial Times the squeeze that started in the US would “undoubtedly” hit the British economy, leading to an expected cut to his 2.5-3 per cent growth projection for next year. Credit squeeze: What next? Mohamed El-Erian Q&A: Mohamed El-Erian answers your questions The slowdown will have an effect on Britain’s tight public finances, and the more gloomy economic outlook comes just as Gordon Brown, prime minister, decides whether to call a November election. Mr Brown’s aides spent Thursday playing down expectations of a snap poll, after this week’s highly successful party conference for David Cameron, leader of the opposition Conservatives, although they stressed that no decision had been taken."