UK economy suffers 0.5% contraction

Britain's economy shrank in the last three months of 2010 - shocking experts in the city and industry.

Latest figures show a contraction of 0.5%, raising new fears about the recovery.

Poor weather is being blamed for some of the downturn.

Chancellor George Osborne admitted the figures were disappointing, but said that he would stick to his austerity programme. For Labour, Ed Balls said it was time to change policy.

The BBC's economics editor, Stephanie Flanders reports.