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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/12/bank-chief-urged-to-quit-over-leak.jpg"><img class="alignnone size-full" title="Leaked documents appear to show Mervyn King criticised David Cameron and George Osborne before the election" src="http://londonglossy.com/wp-content/uploads/2010/12/min-bank-chief-urged-to-quit-over-leak.jpg" alt="Leaked documents appear to show Mervyn King criticised David Cameron and George Osborne before the election"/></a></p>
<p>The governor of the Bank of England has been urged to quit after it emerged he privately criticised David Cameron and George Osborne in the run-up to the general election.</p>
<p>Mervyn King confided to the US Ambassador to London, Louis Susman, in February that he had &#8220;great concern&#8221; about the then leader of the Opposition and shadow chancellor.</p>
<p>Mr Cameron and Mr Osborne, now Prime Minister and Chancellor respectively, lacked experience and tended to view issues merely in terms of their electoral impact, he said.</p>
<p>At pre-election meetings with them, Mr King had pressed the two men for more details about how they planned to reduce the UK&#8217;s deficit. He thought they had failed to grasp the pressures they would face to cut spending, the governor told Mr Susman.</p>
<p>His comments &#8211; which were relayed to US Secretary of State Hillary Clinton &#8211; were revealed in the latest tranche of US embassy cables obtained by WikiLeaks. They are embarrassing for Mr Cameron and Mr Osborne and threaten to damage the Government&#8217;s relations with the governor.</p>
<p>A former member of the Bank of England&#8217;s interest rate-setting monetary policy committee has accused Mr King of compromising Threadneedle Street&#8217;s independence. Writing on the Guardian website, Professor David Blanchflower, who stood down from the MPC in May last year and has clashed with Mr King before, said the governor had a &#8220;thirst for power and influence&#8221; which had &#8220;clouded his judgment one too many times&#8221;.</p>
<p>&#8220;He has now committed the unforgivable sin of compromising the independence of the Bank of England,&#8221; he wrote. &#8220;He is expected to be politically neutral but he has shown himself to be politically biased and as a result is now in an untenable position. King must go.&#8221;</p>
<p>Prof Blanchflower said the leaked cable showed that Mr King had attempted to &#8220;co-author the coalition&#8217;s strategy on the deficit&#8221;, adding: &#8220;That is definitely not part of his job description.&#8221;</p>
<p>Labour MPs also seized on the governor&#8217;s remarks as evidence that he had doubts about the Tories&#8217; deficit-reduction strategy. Chuka Umunna, a parliamentary aide to Labour leader Ed Miliband, said: &#8220;Ministers parrot lines wrongly claiming Labour had no plan for deficit reduction, but now we learn the Bank of England governor had grave concerns that it was they who lacked a plan.&#8221;</p>
<p>But Tory MP Patrick Mercer said the governor should be kept in his job as an &#8220;experienced hand&#8221; at a difficult economic time, even if his independence had been compromised.</p>
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