George Osborne defends deficit strategy

The Chancellor, George Osborne, says Britain will not change its strategy for cutting the budget deficit despite the latest gloomy forecast for growth.

Mr Osborne said the coalition's policies had ensured that interest rates remained low and were the "rock of stability" on which the recovery would be based.

The head of the International Monetary Fund, Christine Lagarde, said the UK's plans to reduce the budget deficit were "appropriate", but warned the Chancellor may have to take tougher action if weak growth and high unemployment continue.

Hugh Pym reports.