Ken Clarke: Unemployment is going to surge in the New Year

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  Ken Clarke: Unemployment is going to surge in the New Year

Ken Clarke, former Chancellor

Mr Clarke warned that unemployment will increase further after  
Christmas, and said that it was important to continue to try to get  
the banking system to work.

Asked what he would do in the current financial crisis he said, "I  
would concentrate on trying to get the banking system and the  
financial system to work.

"Beyond that you need to look at interest rate cuts, we've already  
had. And the tax incentives.

"Unemployment is going to surge in the New Year I think we're going  
to have a big loss of jobs once Christmas is over.

"The nearest parallel we have to now is 1929. This is a financial  
crash of a very serious kind."