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Govt: Economy 'could be worse'

The Chancellor George Osborne has told ITV's Daybreak that the country's economic problems "could be a lot worse", referring to the situation in Cyprus, as he defended his Budget plans to kickstart the recovery.

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Osborne 'playing with fire' releasing Budget details early

Shadow Chancellor Ed Balls told ITV's Daybreak that the Treasury and George Osborne "are playing with fire" after the Evening Standard published details of the Budget on Twitter before the Chancellor's speech.

He said: "If the Treasury and the Chancellor give out to the Evening Standard the market sensitive fiscal forecasts they are playing with fire. I have never heard of that before."

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