Hung parliament ‘would see IMF step in’

KENNETH CLARKE yesterday issued a dramatic warning that Britain could have to be bailed out by the International Monetary Fund if the general election results in a hung parliament.

On the eve of tonight’s second televised leaders’ debate, the shadow business secretary predicted panic in the financial markets and a sterling “wobble” if the election on May 6 failed to deliver a decisive result.

His comments came as Liberal Democrat leader Nick Clegg clashed with Gordon Brown over constitutional reform, further ratcheting up the tension ahead of tonight’s 90-minute encounter in front of a studio audience in Bristol.