Recovery is "in sight" for Britain's beleaguered economy, the Governor of the Bank of England said.

In an exclusive interview with ITV News, Sir Mervyn King said that "momentum" was building within the economy which would become apparent during the course of the current year.

The Governor said he had conversations with the Chancellor and Prime Minister about the economic strategy and he is "confident that there are things that the UK could do and I'm very confident the Government understands that".

Economics Editor Richard Edgar reports: