5.30pm Updates to the earlier ToryDiary entry: Alan Duncan and Philip Hammond speak out in support of Osborne
"Britain is heading for a “collapse of sterling” if Gordon Brown persists with trying to borrow his way out of trouble, George Osborne says in an interview with The Times today. Risking accusations that he is talking down the pound, the Shadow Chancellor mounts a ferocious attack on the Prime Minister, accusing him of following a deliberate “scorched-earth policy” that would leave the economy in a mess for the Tories to inherit. Mr Osborne, ignoring the convention that senior politicians do not predict runs on the pound, says that the country knows instinctively that no government can borrow its way out of debt. He claims that the weight of debt will stifle recovery and also create a big risk for sterling." – Times
"The remarks expose a clear dividing line developing between Brown, who is calling for unfunded extra borrowing to boost the economy, and Osborne, who believes borrowing has reached dangerous levels. But the shadow chancellor risks accusations of provoking a run on the pound himself, or of making a false prediction if sterling recovers in the markets in the months to come." – Guardian
"There is a dearth of the splenetic anger felt by the rest of us… on the front bench of the Conservative Party. It is, frankly, quite astonishing that a government whose excessive spending and botched handling of the public finances are making the recession worse here in the United Kingdom than anywhere else, should be advancing in the opinion polls. How can this be? A major factor, it pains us to say, is the timid nature of Her Majesty’s Loyal Opposition on the economy." – Daily Telegraph leader
Lord Kalms calls for George Osborne to be replaced with David Davis
"You need someone who relates absolutely to working people who is heavyweight. I think George is a first-class man but I’d like to see a bit more grey hair on the front bench. David Davis would be absolutely the right man at this time as shadow Chancellor. I am informing everyone who will listen that change needs to happen." – Lord Kalms quoted in the Daily Telegraph
"David Cameron yesterday demanded that Ed Balls, the Children’s Secretary, release all internal memos about warnings from a senior social worker about apparent failings in the authority’s social services department. Mr Cameron’s demands came as it emerged that the social care watchdog, which was also contacted by the whistleblower, did investigate the allegations but decided that the authority was doing nothing wrong." – Independent
Cameron rethinks plan to give married couples £1,000 tax break after discovering a funding "black hole"
"The revelation that Mr Cameron’s most emblematic family-friendly policy is in jeopardy comes as he faces growing pressure from within his party to match Gordon Brown’s talk of sweeping tax cuts to boost the economy. It will fuel Tory fears that party bosses have been outclassed by a rejuvenated Labour machine and are struggling to stop a sharp decline in its poll ratings." – Daily Mail
UK in for "prolonged recession"
"A severe downturn is unavoidable and the recession in the UK will be "painful and prolonged", the British Chambers of Commerce has said. A sharp rise in unemployment to almost three million is very probable." – BBC
"His music choices include Dire Straits, Puccini and Get The Party Started by Pink, a favourite of one of his daughters. He also selects an obscure protest song, Stealing My Democracy, by Australian folk duo Mundy-Turner, which he said was a source of inspiration when he was making the decision to quit." – BBC
Campaigners urge cut in petrol prices
"Petrol stations were last night under growing pressure to slash prices at the pumps. They were accused of ripping off drivers as forecourt prices failed to fall in line with the tumbling wholesale cost of crude oil." – Daily Express
The Guardian visits the gym at the heart of Boris’s plan to curb youth crime
"The All Stars gym, in west Kilburn, north-west London, has been quietly reaching out to boys such as Moses for more than 30 years. But now, thanks to interest from the London mayor, Boris Johnson, it has been propelled to the vanguard of his plans to tackle the rising youth violence in the capital that has claimed 28 teenage lives this year." – Guardian
Tessa "Two Desks" Jowell had her offices redecorated 5 times in 6 years
"Olympics minister Tessa Jowell has been branded “Two Desks” after running a pair of offices which have had a string of renovations." – Mirror
Hillary Clinton tipped to be Obama’s Secretary of State – Times
Sarkozy: Plans for a US missile shield in eastern Europe are misguided – PA
Please use this thread to highlight other interesting news and commentary and visit PoliticsHome.com for breaking political news and views throughout the day.