Chancellor defends strategy in face of GDP drop

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.

Read Richard Edgar's analysis here


UK triple-dip recession looms

Chancellor George Osborne has vowed not to "run away" from Britain's economic problems amid fresh signs the UK is heading for an unprecedented triple-dip recession.