Bank of England governor Mervyn King has warned privately that the winner of the General Election could pay the price the next time the country goes to the polls, it was claimed today.

Economist David Hale said the ex-Wolverhampton Grammar School pupil had confided in him.

He said Mr King told him   whoever takes power after May 6 will have to implement such severe measures to rebuild the public finances, they will find themselves out of office for a generation.

Mr Hale told Australian television: “I saw the governor of the Bank of England last week when I was in London and he told me whoever wins this election will be out of power for a whole generation because of how tough the fiscal austerity will have to be.”

The Bank would not comment on his remarks, although it is understood the two men met in early March and not last week as Mr Hale said in the interview.

Earlier this year, however, he made it clear he saw tough decisions ahead for ministers — as they attempt to reduce the budget deficit amassed during Britain’s deepest and longest recession since World War Two.

“The need for a credible plan to ensure a substantial reduction in the fiscal deficit is clear to everyone,” said Mr King in February. He added the deficit would not be tackled without “significant fiscal consolidation”.

The governor’s private warning emerged after the Institute for Fiscal Studies accused the main parties of failing to come clean over the depth of the spending cuts needed after the election.