Chancellor George Osborne has told ITV News the government will stick to its strategy of reducing spending on welfare while putting money into infrastructure and reducing the deficit.
He denied he was at odds with Deputy Prime Minister Nick Clegg who appeared to admit in an interview that the government had made a mistake in cutting infrastructure spending to steeply.
Business leaders at the World Economic Forum cautioned against complacency amid optimism that the eurozone is emerging from its crisis.
The Chancellor blames GDP figures on the crisis he inherited, and troubles abroad. As criticism mounts, his position becomes more difficult.
Unusually frank words for the government from one of the City's top economists on today's dismal GDP figures.