George Osborne has vowed to stick to his economic strategy despite Britain being stripped of its prized AAA credit rating.
The Chancellor struck a defiant note after Moody's downgraded the country to AA1 - warning that sluggish growth would continue for years.
Political Correspondent Carl Dinnen reports:
The decision by the ratings agency Moody's to downgrade the UK's AAA credit rating, is unwelcome news for the Government.
Britain's loss of its triple-A credit rating is grim news for the Chancellor. But why does the marginal downgrading carry such a high price?
George Osborne had set great store by Britain's triple-A badge. But is the loss of the rating a loss of confidence in his policies?